Delinquent Property Taxes
What Happens if Property Taxes Aren't Paid?
For Real Estate, if taxes are not paid by the due date, penalty accrues on the late payment. The later the payment, the greater the penalty. Penalty rates are listed on the back of the tax statement and increase monthly.
Example of Penalty Calculation
On January 2 of the following year the unpaid taxes are considered to be delinquent. At that point the penalty rate increases and interest is also imposed on the unpaid tax, penalty, and fees. The current interest rate is 10% per year. The interest rate increases monthly.
Example of Penalty and Interest Calculation
Each year the county starts delinquent tax proceedings against newly delinquent properties. The property owner is notified of this action in two ways, generally in March:
- A letter is mailed to affected property owners
- A list of all affected properties is published in the newspaper for 2 weeks. This is known as the Delinquent Tax List. It includes the parcel number, owner name, address, property description, and delinquent amount.
Parcels may have been paid since the list was published, so call or check online to verify if taxes have been paid. Payment Plans are available for delinquent property taxes.
The first year of delinquency starts the clock ticking toward tax forfeiture. Property owners have three years to pay all delinquent taxes and redeem the property. (This is new starting in 2014. 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 for nonpayment of taxes. The County generally mails a courtesy notice in December of the year before this will take place. Formal notice of this pending action is given to the taxpayer in four ways, generally in April:
- A letter is sent by certified mail to affected property owners
- A list of all affected parcels scheduled to forfeit is published in the newspaper for two weeks. This is known as the Expiration of Redemption list.
- The Expiration of Redemption list is posted in the office of Property Records and Taxpayer Services and is available for public inspection.
- The sheriff serves a copy of the notice to the occupant of non-vacant properties.
A fee is imposed on each parcel to cover the costs of publication, notification, and sheriff’s services. The current fee is $150.
Parcels may have been paid since publication, so call or check online to verify if taxes have been paid.
Example of Calculation of the Amount Required to Redeem a Delinquent Property