Minnesota operates as a tax deed state, where unpaid property taxes and penalties become delinquent on the first business day in January after they are due. On this date, the county treasurer returns the county property tax lists for all real property taxes payable in the previous year to the county auditor. Subsequently, on or before February 15th, the county auditor files a delinquent tax list with the district court. If no objections are made, the court enters a tax judgment against the parcels on the list for the delinquent amounts due.

On the second Monday in May, the county auditor initiates a tax judgment sale by “bidding in for the state” the amount of all delinquent taxes, penalties, costs, and interest due. Essentially, this step sells the property to the state in a tax judgment sale. The state then acquires an interest in each tax-delinquent property, subject to the redemption period.

Following the tax judgment sale to the state, the property owner enters the redemption period, which is usually three years but can vary based on factors such as the property’s use and location. During this period, the owner can pay the delinquent tax amounts to prevent losing the property. For properties located in targeted neighborhoods or meeting specific criteria, the redemption period may be one year. Additionally, for abandoned or vacant properties, the redemption period is reduced to five weeks.

If the property owner fails to pay the delinquent amounts during the redemption period, the property is forfeited to the state. After the forfeiture, the state may opt to sell the home at a public auction to the highest bidder.