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2014 Interest Rate

 

2014 Interest Rates on State Court Judgments and Arbitration Awards

 

M.S. 549.09 directs the State Court Administrator to determine the annual interest rate applicable to certain state court judgments, verdicts, and arbitration awards.

Effective August 1, 2009, for judgments finally entered on or after that date, the applicable rate will depend on the amount of the judgment.  Judgments less than or equal to $50,000 will be subject to the annual interest rate computed by this office under 549.09, which for calendar year 2014 shall be 4%.  Judgments greater than $50,000 that are finally entered on or after August 1, 2009, except judgments for or against the state or a political subdivision entered on or after April 16, 2010, will be subject to a 10% interest rate per year until paid.

M.S. 548.091, subd. 1a, provides that the interest rate applicable to child support judgments shall be the rate provided in M.S. 549.09 subject to a 18% maximum rate.

The following lists the judgments rates in effect for state courts:

YEAR   RATES  
     M.S. 549.09 M.S. 549.09  M.S. 548.091
    Judgments  (Child Support Payments)
     greater than $50,000  
       
1997 5%   7%
1998 5%   7%
1999 4%   6%
2000 5%   7%
2001 6%   8%
2002 2%   4%
2003 4%   6%
2004 4%   6%
2005 4%   6%
2006 4%   6%
2007 5%   7%
2008 4%   4%
2009 4% 10%* Follow 549.09 Rate (but not more than 18%)
2010 4% 10% Follow 549.09 Rate (but not more than 18%)
2011 4% 10% Follow 549.09 Rate (but not more than 18%)
2012 4% 10% Follow 549.09 Rate (but not more than 18%)
2013 4% 10% Follow 549.09 Rate (but not more than 18%)
2014 4% 10% Follow 549.09 Rate (but not more than 18%)

 *Judgments greater than $50,000 and Finally entered on/after 8/1/09

As amended by 2002 Minn. Laws Chap. 247, Sec. 1, and Minn. Laws Chap. 83, Art. 2, Sec. 35, Section 549.09 directs that the rate is to be determined by using the monthly one year constant maturity treasury yield reported in the latest statistical release of the federal reserve board of governors rounded to the nearest one per cent, subject to a four percent minimum; provided that for judgments exceeding $50,000 that are finally entered on or after August 1, 2009, the interest rate shall be 10% per year until paid.

The interest rate determined pursuant to Section 549.09 does not apply to judgments for the recovery of taxes and employment arbitrations pursuant to M.S. Chapters 179 or 179A, and may not apply to judgments in condemnation cases. In condemnation cases governed by M.S. 117.195, the interest rate determined pursuant to Section 549.09 is presumed to satisfy the constitutional requirements of just compensation unless the landowner shows that this rate does not provide what a reasonable and prudent investor would have earned while investing so as to maximize the rate of return, yet guarantee safety of principal. State by Humphrey v. Jim Lupient Oldsmobile Co., 509 N.W., 2nd 361,364 (Minn. 1993).

The interest rate on judgments for the recovery of taxes owed to the Commissioner of the Department of Revenue, such as income, excise, and sales taxes, is established by the Commissioner pursuant to M.S. 270C.40, subd. 5. The interest rate for state tax judgments also applies to judgments for the recovery of real or personal property taxes, subjected to a ten percent minimum and fourteen percent maximum, pursuant to M.S. 279.03, subd. 1a. These rates may be obtained from the Department of Revenue.

M.S. 549.09, subd. 1(d) provides that section 549.09 does not apply to arbitrations between employers and employees under Chapter 179 or 179A, and that an arbitrator is neither required to nor prohibited from awarding interest under Chapter 179 or M.S. 179A.16 for essential employees.