Hennepin Co. sues over deed transfer tax
MINNEAPOLIS (AP) — Hennepin County is suing Fannie Mae and Freddie Mac in federal court saying the mortgage lenders failed to pay millions of dollars in deed transfer taxes.
The county is seeking more than $10 million to recoup deed taxes the lenders owed since February 2006, interest and attorneys' fees.
The federal government-sponsored Fannie Mae and Freddie Mac acquired a large number of foreclosed properties in recent years and resold them. The lenders said they didn't have to pay taxes on transferring ownership because Minnesota law exempts U.S. agencies. Minnesota gets 97 percent of deed transfer taxes. Counties keep 3 percent for collecting the tax.
The Star Tribune reports Oakland County, Mich., filed a similar lawsuit and won.
Copyright 2012 The Associated Press.