Payment Plan for Delinquent Taxes
A payment plan lets you pay delinquent property taxes over time. Under Minnesota law, this plan is called a Confession of Judgment. The plan combines all unpaid taxes, penalties, special assessments, interest, and costs into one balance. Interest accrues on the unpaid balance each month.
Payment plan terms
- One payment is due each year by Dec. 31 for the duration of the plan
- Any remaining current-year property tax balance must be paid by Dec. 31
- You may pay off the plan early with no penalty
- After the final payment, the delinquent tax lien is released
| Term | Residential Homestead Property | Residential Non-Homestead Property | Commercial/Industrial Property |
|---|---|---|---|
| Duration | 10-year plan | 10-year plan | 5-year plan |
| Interest rate | 7% annually (0.5833% monthly) | 7% annually (0.5833% monthly) | 7% annually (0.5833% monthly) |
| Downpayment amount | 10% of the total delinquent balance | 10% of the total delinquent balance | 20% of the total delinquent balance |
| Contract creation fee | $152 | $152 | $152 |
| Number of annual installments | 9 | 9 | 4 |
Who can request a plan
You must have an interest in the property in one of the following ways:
- Property owner
- Mortgage lender
- Buyer under a contract for deed
- Party holding a life estate
- Power of Attorney for above listed eligible individuals
How to set up a plan
To start a payment plan, call 651-438-4576 to see if you qualify and schedule an in-person meeting.
If you are approved the following are required:
- Bring a valid photo ID (driver's license, state ID, or passport)
- Pay for the down payment, contract fee, and current year taxes
- Must pay by secure funds (cashier's check, money order, or cash)
- Come in-person to sign the official payment plan agreement.
Your payment responsibilities
Requirements must be met each year to continue with the payment plan:
- The annual installment payment, with interest, paid by Dec. 31
- If unpaid, you will receive a notice by Nov. 30
- The notice will detail the total amount due by Dec. 31
- Pay any remaining current-year property taxes by the due date
- If you do not pay by the due date, a monthly penalty will be added.
Default
You will be in default if you do not pay your annual installment, current year taxes, or both by Dec. 31.
If this happens:
- You will receive a notice by certified mail.
- The notice will list the unpaid installment and any unpaid taxes.
- You have 60 days to pay the full amount due by secured funds (cashier's check, money order, or cash).
If payment is not made within 60 days:
- The payment plan is canceled.
Important to know:
- You may enter up to two payment plans for the same delinquent tax years.