State Summary

Tax Collection Method: Deeds
Primary Bidding Type: Premium
Redemption Period: None
Redemption Interest Rate/Flat Penalty: Not applicable

The following information summarizes the life cycle, requirements, and administering of tax liens in the state of Minnesota. Please read this information carefully. There are tax collection laws that pertain to all counties in Minnesota, but be aware that there are subtle differences between the counties as well. When the word "typical" is used in the FAQs below, it indicates that most counties use this procedure/follow this convention, but not all counties.

Is Minnesota a tax lien or a tax deed state?
Minnesota is a tax deed state.

What is the name of the county official whom typically collects property taxes in Minnesota?
The County Treasurer.

When are property taxes due in the state of Minnesota?
Property taxes are paid in two installments for all counties in Minnesota. The first installment is due May 15 and the second installment is due October 15.

When do property taxes become delinquent in the state of Minnesota?
Property tax payments for all counties in Minnesota become delinquent beginning the day after the due dates. The interest rate for a late payment of the first half tax starts at 2% per month (24% per annum) from May 16-May 31, and then the rate gradually increases for each subsequent month (4% for June, 5% for July, 6% for August, 7% for September, 8% for October-December, and 10% for January of the following year). The interest rate for a late payment of the second half tax starts at 2% per month (24% per annum) from October 16-October 31, and then the rate increases for each subsequent month (6% for November, 8% for December, and 10% for the following January. The median percentage value (for first half and second half delinquency) is assessed against the total delinquent amount if both the first and second half tax bills are delinquent.

What is the name of the county official whom typically conducts tax deed sales in Minnesota?
For most counties, the County Auditor works along with the County Land Department to conduct tax-forfeited land sales.

When does the typical Minnesota county hold their tax deed sale?
Most counties do not have regularly scheduled sales and are only held on an as-needed basis. The County Auditor page of many county Web sites manage mailing lists which interested investors can subscribe to and receive email updates about upcoming tax-forfeited land sales.

What are the registration requirements for the typical Minnesota tax deed sale?
Registration requirements can vary by county, but most counties do not have extensive registration requirements, and generally, bidders can register just before the auction on the day of the sale.

What is the bidding type used at a typical Minnesota tax deed sale?
Most counties use premium bidding at a public outcry auction. Most counties allow sealed bids to be sent in prior to the auction.

What are the general terms of payment for the typical tax deed purchased at an Minnesota tax deed sale?
This varies by county. Some counties require full payment for the deed amount on the day of the sale. Other counties offer various financing programs. In a typical county offering a financing option, at least 10% of the tax deed amount is due on the day of the sale, and the remaining balance is to be paid off in equal annual installments. Depending on the tax deed amount and the policy of the county, a tax deed purchaser can finance the remaining balance for up to 10 years. The fixed interest rate for financing ranges from 10% to 14%.

Are tax deeds offered "over-the-counter" in Minnesota?
Yes. In most counties, the County Auditor or the Taxpayer Services Department will have information on forfeited lands available for purchase. In most cases, forfeited properties may be purchased for the amount of taxes owed.

What is the name of the local official whom typically determines the values of properties on a annual basis?
County Assessor.

For more information on delinquent real estate taxes and tax-forfeited parcels in the state of Minnesota, refer to the following chapters in the Minnesota Statutes:

Chapter 279 - Delinquent Real Estate Taxes
Chapter 280 - Real Estate Judgment Sales
Chapter 281 - Real Estate Tax Sale and Redemption
Chapter 282 - Tax-Forfeited Land Sales

Minnesota County Reference