Mortgage Registry Tax Multi-State Mortgage
A multi-state mortgage creates a lien on real property in Minnesota and on real property in at least one other state. Minnesota Statute 287.05 allows two options for determining the Mortgage Registry Tax (MRT) on a multi-state mortgage.
Limiting Clause
“Notwithstanding anything to the contrary herein, enforcement of this mortgage in Minnesota is limited to a debt amount of
$ _______ under chapter 287 of Minnesota Statutes.”
Tax will be imposed based on the amount of debt stated in the clause. The effect of the mortgage, or any amendment or extension, as evidence in any court in this state, or as notice for any purpose in this state is limited to the amount contained in the statement.
Ratio Method
The ratio method is calculated by dividing the value of the Minnesota real property encumbered by the mortgage by the value of all the real property encumbered by the mortgage.
Ratio Method Example:
| Market value of Minnesota real property | $400,000 |
| Market value of California real property | $600,000 |
| MN Debt Ratio | 40% |
| Mortgage Amount | $800,000 |
| MN Debt | $320,000 |
| Minnesota mortgage tax due (.0023/.0024 Hennepin and Ramsey) | $736/$768 |
