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Behind on Property Taxes in Minnesota? Forfeiture, Redemption, and the Tyler Case

If you've researched delinquent property taxes online, most of what you found probably doesn't apply here. The majority of states sell tax lien certificates to private investors who then collect interest from the homeowner. Minnesota does something different, and the difference matters at every stage.

Minnesota Forfeits; It Doesn't Sell Certificates

Here, unpaid taxes go to judgment in district court and the parcel is "bid in" to the State of Minnesota. No investor buys a lien on your home. No one is calling you demanding a redemption payment at 18% interest. Instead, a clock starts, and if it runs out the property forfeits to the state outright.

The Timeline

January 1. Any property tax still unpaid on January 1 of the following year is legally delinquent. The county publishes a delinquent list and petitions the district court.

Judgment and bid-in. The court enters judgment and the parcel is bid in to the state. This starts your redemption period.

Three years. For most property the redemption period is three years from judgment. This is a common source of bad information: before a 2014 change, homesteads, cabins, and township property got five years. Older articles still say five. Don't rely on them.

Notice of Expiration of Redemption. Before the window closes, the county serves this notice. It states the date after which redemption is impossible. It is the single most important document in the process.

Forfeiture. Can occur as early as 60 days after that notice, or the second Monday in May, whichever is later. Title then vests absolutely in the state.

Throughout redemption you remain the owner. You live there. You can sell.

The Tool Almost Nobody Uses: Confession of Judgment

Under Minn. Stat. § 279.37, qualifying owners can enter a "confession of judgment" — effectively an installment plan that lets you repay delinquent taxes over a period of years while the forfeiture clock is held off, provided you stay current on the plan and on new taxes going forward.

This is the most under-used option available to Minnesota homeowners in tax trouble. If you have income but not a lump sum, ask your county about it before doing anything else. In Hennepin County, call property tax at (612) 348-3011.

Tyler v. Hennepin County

Geraldine Tyler owed about $15,000 in delinquent taxes, interest, and costs on a Minneapolis condominium. Hennepin County took the property, sold it for $40,000, and kept all of it. In 2023 the U.S. Supreme Court ruled unanimously in Tyler v. Hennepin County that keeping the surplus violated the Takings Clause of the Fifth Amendment.

Minnesota rewrote its law in response. Under Minn. Stat. § 282.005, when a sale of tax-forfeited land produces a surplus above what was owed, the county auditor must notify interested parties within 60 days and provide a claim form so the former owner can claim the excess. A separate settlement fund was created for owners affected by past forfeitures.

Why That's Still Not a Plan

Claiming surplus proceeds is a backstop, not a strategy. You lose the home. You don't control what it sells for at a county auction. The county's costs come out first. You file a claim and wait.

Selling during redemption — while you still own the property and can negotiate — puts materially more money in your pocket, and puts it there sooner. The taxes are simply paid from the proceeds at closing, exactly like a mortgage payoff.

Before You Do Anything, Check These

Plenty of Minnesota homeowners are paying more property tax than they owe. Confirm the home is classified as a homestead — the Homestead Market Value Exclusion is 40% of market value for homes valued at $95,000 or less, up to a $38,000 exclusion, phasing out at $517,200. File Form M1PR for the income-based Homestead Credit Refund, plus the special "targeting" refund if your tax jumped sharply year over year. At 65+ under the income limit, look at the Senior Citizens' Property Tax Deferral under Minn. Stat. ch. 290B. And if the assessed value is higher than what the home would actually sell for, appeal it.

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This article is general information about Minnesota law and practice, not legal, tax, or financial advice. Statutes and county procedures change. Confirm anything that affects a decision with a licensed Minnesota attorney, a CPA, or the relevant county office before acting on it.

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