Real estate taxes not paid by the due date are considered late and will accrue penalty on the late tax amount. Penalty on the unpaid tax amount increases on the first of each month. Penalty rates are set by State Legislators and are listed on the back of the tax statement.
Unpaid taxes are considered to be delinquent on January 2nd of the following year. At that point the penalty rate increases for the final time and interest is also imposed on the unpaid tax, penalty, and fees. For Real Estate property the current maximum penalty rate is either 10% or 14% depending on classification. The current interest rate is 10% per year. The interest rate is set by State Legislators and increases monthly.
Each year the County starts delinquent tax proceedings against newly delinquent real estate properties. Around February 15th, the property owner is notified of this action in two ways:
- A letter is mailed to affected property owners
- A list of all affected properties is published for two non-consecutive weeks in the official county newspaper. The newspaper is designated by the County Board. This is known as the Delinquent Tax List. It includes the parcel number, owner name, property description, and tax and penalty amount due.
A delinquency fee is imposed on parcels to cover the costs of publication and notification. The current fee is $30 per parcel.
Payments may have been received after the list was published, so call or check online to verify if taxes have been paid. Partial payments are accepted for delinquent property taxes, but unless paid in full, will not stop forfeiture proceedings.
The first year of delinquency is when the tax forfeiture process begins. Property owners have three years to pay all delinquent taxes and redeem the property. (This was changed in 2013. Previously, owners of homesteads/cabins, or property located in a township had five years to pay all delinquent taxes and redeem the property, and only non-homestead property in a city had a three year redemption period.)
If taxes are not paid by the end of the redemption period, the property will forfeit to the State of Minnesota in Trust. The County mails to the taxpayer a courtesy notice in the year that forfeiture will take place; this is typically processed in March. The formal process for notification of pending forfeiture action usually begins in May and is provided to the taxpayer in the following four ways:
- A Notice of Expiration of Redemption is sent by certified mail to affected property owners.
- A list of all affected parcels scheduled to forfeit is published in the official county newspaper for two non-consecutive weeks. This is known as the Expiration of Redemption list.
- The Expiration of Redemption list is posted outside the office of Taxpayer Services Department and available for public inspection.
- The Sheriff serves a copy of the Notice of Expiration of Redemption to the occupant of non-vacant properties.
The redemption period expires 60 days after the date the Sheriff certifies that papers were served. In order to avoid forfeiture, payment in full of the delinquent tax must be in our office before the redemption period expires.
For more information regarding the delinquency process, please contact Property Tax, Elections and License Centers at (952) 361-1910.
For more information regarding the tax forfeiture process, please contact Land Records at (952) 361-1930.