Length You Can Go Without Paying Property Taxes in Minnesota

Get an idea of how long you can go without paying property taxes in Minnesota and what will happen if you can’t afford to pay.

Although no one enjoys paying property taxes (Minessotan’s included), the revenue generated by these taxes is essential for funding the creation and maintenance of infrastructure throughout the state that is used and enjoyed by Minnesota residents. 

Property owners in Minnesota may be able to temporarily escape the burden of paying their property taxes, but failing to meet the state of Minnesota’s final property tax deadline may result in an even heavier, more expensive burden in the long run: the loss of property to the state, also known as property forfeiture. 

Like all States, Minnesota has a legal process that allows local government to reclaim losses that result from delinquent property taxes. In this article, we’ll explain Minnesota’s property tax process, the consequences of failing to meet Minnesota property tax deadlines, the difference between late and delinquent property taxes, and what you can do as a homeowner to prevent forfeiture of your home to the state. 

Falling behind on your property taxes can seem like the end of the world, especially when you are so behind that you risk losing your home. Few things can seem worse. Fortunately, there are actions you can take when facing such a situation in Minnesota. Read on to learn about the consequences of delinquent property taxes in Minnesota and what you can do if you happen to find yourself in such a situation. 

Minnesota Tax Process

Minnesota Tax Process

If you own real property in Minnesota, such as a home, you are subject to paying property taxes. Generally speaking, the amount of property taxes you are required to pay is based on the assessed value of your property.

When it comes to mortgages for homeowners, it is common for your loan servicer from your mortgage company to include a percentage of the required property taxes in the amount that you are charged for your monthly mortgage. However, this is not always the case. If property taxes are not included in your monthly mortgage amount, it is the responsibility of you, the homeowner, to pay your property taxes directly. Failure to do so may result in serious penalties and eventually, the loss of your home. 

Like all States, Minnesota has a legal process that allows local government to reclaim losses that result from delinquent property taxes. So, you’re probably wondering, ‘exactly how long can you go without paying property taxes in Minnesota?’

Length You Can Go Without Paying Property Taxes in Minnesota?

Property tax deadlines in Minnesota vary according to county and city. Failure to miss the property tax due dates and timeframes specified by the county result in property taxes that are deemed late. However, there is a significant difference between late property taxes and delinquent property taxes. The consequences of delinquent property taxes are far more severe. 

Eventually, if you fall behind on your property taxes in Minessota for long enough, a court will enter a tax judgment which begins the process of seizure of your property for the state to sell to a new owner in a public auction. In the state of Minnesota, you have approximately a year from the day the property taxes are originally due by your county to pay them before they become considered delinquent property taxes. 

Unpaid property taxes become delinquent on the first business day in January the following year the property taxes were originally due in the year before the current year. (Minn. Stat. § 279.02). Within about forty-five days from that date (or by February 15th), a delinquent tax list will be filed with the district court. (Minn. Stat. § 279.05). At this point, if there are no objections raised, the court will enter a tax judgment against you, the property owner, for the amount of property taxes owed. (Minn. Stat. § 279.16, § 279.15).

Finally, the last significant date for taxpayers in Minessota’s property forfeiture process for delinquent property taxes is the second Monday in May. Then county tax auditor will then “bid in for the state” the amount of your delinquent taxes. This essentially sells the property to the state in a tax judgment sale. (Minn. Stat. § 280.01, § 280.43).

Fortunately, paystatetax.com has made it more convenient than ever to make a property tax payment online from the comfort of your own home.

What Happens if You Stop Paying Property Taxes in Minnesota?

When homeowners in Minessota stop paying property taxes for more than 12 months, there is a forfeiture process that is initiated by your county board and county auditor. 

Property Tax Forfeiture

When you stop paying property taxes in Minnesota for more than a year, you face the possibility of losing your property to the State along with any equity you may have. This process is referred to as “property tax forfeiture” and is overseen by the county the property is located in. 

Can You Lose Your House if You Don’t Pay Property Taxes In Minnesota?

Yes, it is possible to lose your house when you stop paying property taxes in Minnesota. However, before that occurs, you would need to have missed the original property tax due dates specified by your county as well as failed to pay what you owe before the first business day in January following that original property tax due date set forth by the county. 

This is when your property taxes will become delinquent. Additionally, there must be no objections raised with the court within 45 days of delinquency. However, once those criteria are satisfied, you will be subject to the forfeiture of your home in a tax judgment sale. 

man who cant afford property taxes

What to Do if You Can’t Afford Property Taxes in Minnesota

If you can not afford to pay your property taxes on time there are a couple of options that you have in Minnesota. As a property owner in Minessota, you may be able to stop the forfeiture of your personal property by submitting a confession of judgment.

What exactly is a confession of judgment? A confession of judgment is an official admission that you owe property taxes combined with a promise to pay your debt. Typically a payment plan is offered that consists of yearly installments over a specified time. 

Another option you may have as a homeowner is to sell your home. Many people incorrectly assume that you can not sell a home with a property lien. The truth is, while a property lien on your home may present added difficulties and significantly slow down the home selling process, homeowners are still capable of selling their property in Minnesota with the help of trusted and professional home buyers that know the Minnesota real estate market. 

If you want to sell your house fast for cash, the Mill City Home Buyers can help. Click the links below to learn more:

Minnesota Property Tax Law & Covid-19

If you want to know if there are any property tax extensions and/or property tax exemptions for homeowners in Minnesota in light of Covid-19 in 2022, unfortunately, the answer is no. The usual deadlines and timeframes apply. 

Additionally, to qualify for any property tax exemption in Minnesota you must have paid at least the first half of the delinquent amount by the May deadline. However, it is always best to contact a trusted attorney for legal advice. Fred Law can advise you on the property tax laws in MN and help you determine your eligibility for tax exemptions and extensions.

Final Thoughts

As a homeowner in Minnesota, it is crucial to be aware of the various property tax time frames and deadlines if you hope to avoid penalties and risk losing your home. Like all states, Minnesota has a legal process to recover losses sustained due to delinquent property taxes. 

If you can not afford your property taxes and fail to pay your property tax payment before the redemption period expires, you may lose your home by forfeiture to the state of Minnesota. However, if you are in such an unfortunate situation, there are clear steps you can take to mitigate such a loss. 

Remember, time is of the essence. If you are interested in selling your house fast for cash, contact Mill City Home Buyers today!

kevins

Kevin is a real estate investor dedicated to helping homeowners sell their properties quickly and without the stress and hassle of a traditional listing.

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