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Delinquent Taxes and Forfeiture

Property taxes become delinquent on the first business day of the year following the year in which they were due. Interest begins to accrue on the unpaid tax and penalties. The property is put into judgment, and for most properties, the period of redemption is three years. The  period of redemption expires in the fourth year, and the forfeiture process begins if taxes remain unpaid, or if no interested parties have confessed judgment.

Delinquent Tax List

The Delinquent Tax List consists of parcels that are newly delinquent; the first year of tax delinquency is the judgment year and sets the timeline towards forfeiture.
The following is the 2026 Delinquent Tax List that was filed in District Court on 2/6/2026:

Confession of Judgment

Taxpayers who are behind on their property taxes may confess judgment any time prior to the Expiration of Redemption. The Confession of Judgment is a repayment contract that enables a taxpayer to pay the back taxes over time to prevent forfeiture. Repayment plans are 10 years for residential properties and 5 years for commercial properties.

Requirements to open a plan for most property types:

  1. Signed Contract with the Auditor’s Office
  2. Downpayment equal to 10% of the delinquent tax balance (20% for commercial properties)
  3. Payment in full of any special assessments (commercial properties only)
  4. $50 filing fee
  5. Payment of current year tax installments, if due

Requirements to maintain a plan:

  1. Contract holder must make one annual installment payment, by December 31, each year for the life of the contract
  2. Current year taxes must be paid as they come due

Interest accrues monthly on the unpaid balance of the contract. Interest rates are set annually by Minnesota Department of Revenue, and applied in accordance with Minnesota Statute, Section 279.37.

Annual installment invoices are mailed each November. Installments may be paid at any time but must be made by December 31. Contracts can be paid off early by paying the full balance and accrued interest.

Default

If the annual installment or current year’s taxes are not paid by December 31, the contract will be in default. Payment must be made within 60 days to cure the default, or the contract will be canceled and the property subject to tax forfeiture.

Expiration of Redemption

If delinquent taxes are not paid within the period of redemption the parcel is eligible for forfeiture due to unpaid tax. An Expiration of Redemption Notice is mailed to all owners, taxpayers and interested parties, published in the county’s official newspaper and served upon occupied parcels by the County Sheriff. To avoid forfeiture, taxpayers are given until the date listed on the notice to either pay the entirety of the delinquent taxes or open a Confession of Judgment repayment contract.

Forfeiture

If taxes remain unpaid, or if no one has confessed judgment, the parcels will forfeit to the State of Minnesota, with Lake County managing the properties in trust for the state. Pursuant to Minnesota Statute, Section 282.005, newly forfeited properties must be offered for sale by public auction. Please refer to the Land Sales webpage for more information: https://www.co.lake.mn.us/forestry/land-sales/

Opportunity to Repurchase Real Estate Parcels

There is a short window of time during which previous owners may repurchase their forfeited property for the sum of all delinquent taxes and assessments computed under Minnesota Statute, Section 282.251, together with penalties, interest, and costs, that accrued or would have accrued if the parcel of land had not forfeited. Repurchase may be completed between the date of forfeiture and the date of the public sale.

Tax Forfeiture Sale Surplus Proceeds

If a tax-forfeited property is sold at public auction for more than the total delinquent taxes, special assessments, penalties, interest, and administrative costs, the former owner or other interested party may be entitled to the surplus proceeds. A Notice of Surplus and Claim Form will be mailed to the former owner and any interested parties of record. Claims must be submitted within six months of the date of the first notice. Approved claims will be paid after this period has expired. Interested parties will only receive these notices if they keep the Auditor’s Office informed of their current mailing address.

Minerals

Upon forfeiture any iron-bearing stockpiles, minerals, and mineral interests are sold to the state for $50. The county issues a $50 payment to previous owners of record. Interested parties are given the opportunity to file claim alleging the value of the mineral interests exceeds the minimum bid price (sum of delinquent taxes, special assessments, penalties, interests, and costs assigned to the parcel) for six months from the date of the first notice. Any claims on Mineral Interests will be conveyed to MN DNR for review and determination. Interested parties will only receive notice if they keep the Auditor’s Office informed of their current mailing address.