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Interest Rates On Judgements & Awards
Determination of Rate
Statute 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.
For judgments and awards governed by section M.S. 549.091 (PDF) the annual interest rate for calendar year 2010 shall be 4%, 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.
M.S. 548.091 (PDF) provides that the interest rate applicable to child support judgments shall be the rate provided in the M.S. 549.09, subject to a 18% maximum rate.
Effective Rates
The following lists the judgment rates in effect for state court:
| Year | General Rate | Child Support Rate |
|---|---|---|
| 1991 | 7% | |
| 1992 | 5% | |
| 1993 | 4% | 6% |
| 1994 | 3% | 5% |
| 1995 | 6% | 8% |
| 1996 | 5% | 7% |
| 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 - Present |
4% | 10% - Follow 549.09 rate (but not more than 18%) |
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 conditional 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 principle. State by Humphrey v. Jim Lupient Oldsmobile Co., 509 NW. 2d 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.40m subdivision 5. The interest rate for state tax judgment also applies to judgments for the recovery of real or personal property taxes, subject to a ten percent minimum and fourteen percent maximum, pursuant to M.S. 279.03, subdivision. 1a. These rates may be obtained from the Department of Revenue.
M.S. 549.09, subdivision. 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.
2As amended by 2002 Minn. Laws Chap. 247, Sec. 1, and 2009 Minn. Laws Chap. 83, Art. 2, Sec. 35, Section 549.09 directs that the annual 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 percent, 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 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.40m subdivision 5. The interest rate for state tax judgment also applies to judgments for the recovery of real or personal property taxes, subject to a ten percent minimum and fourteen percent maximum, pursuant to M.S. 279.03, subdivision. 1a. These rates may be obtained from the Department of Revenue.
M.S. 549.09, subdivision. 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.
2As amended by 2002 Minn. Laws Chap. 247, Sec. 1, and 2009 Minn. Laws Chap. 83, Art. 2, Sec. 35, Section 549.09 directs that the annual 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 percent, 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.