Tax Forfeited Land

Upon forfeiture, tax-forfeited land is removed from the tax rolls and all taxes and special assessments are cancelled. If proceeds from the sale of tax-forfeited land are not sufficient to cover the amount of cancelled special assessments, any remaining balance may be subject to reassessment.   Improvements not yet assessed are the responsibility of the purchaser.  It is the responsibility of a prospective purchaser of tax-forfeited land to verify special assessment status with the municipality.

Tax-forfeited land sold at the auction is returned to the tax rolls. Tax-forfeited land sold on or before December 31st is placed on the assessment rolls for that year’s assessment, for taxes payable in the following year.  For example, property sold in 2024 will be assessed in 2024 for taxes payable in 2025.

Any tax-forfeited land remaining unsold after the initial public auction is the property of the state in trust for the taxing districts and is tax-forfeited land inventory managed by the county. Tax-forfeited land in inventory may be conveyed or sold to a governmental subdivision for public use or purpose, sold at public or private sale and returned to the property tax rolls, or remain in inventory. 

Newly forfeited property is offered for sale at an initial public auction within six months of the later of the date of forfeiture, or the date the property was vacated.

The initial public auction is a two-part sale.  The property is first offered for sale to the highest bidder with the most recent estimated market value as the starting bid.  If the property remains unsold after 30 days, the starting bid is reduced to the amount of delinquent taxes, special assessments, penalties, interest, and costs.

All newly forfeited property is available for sale at an initial public auction, except for property repurchased by the former owner or other interested party, and property withheld from sale by the Department of Natural Resources through the condemnation process.

Proceeds from the initial public sale over and above the amount of the delinquency are paid to former owners or other interested parties who submitted a claim.  Approved claims are paid after the six-month claim period expires.

The remaining proceeds are used to pay expenses incurred in the administration and sale of tax-forfeited land, and to pay special assessments cancelled due to the forfeiture.   The county board opts to set aside 20% of the net proceeds for county parks, and the remainder is distributed 40% to the county, 20% to the municipalities, and 40% to the school districts.

If the sale of the tax-forfeited land results in a surplus, the former owner and other interested parties of record are notified and may submit a claim for the surplus proceeds. Surplus proceeds occur when tax-forfeited land is sold at an initial public auction for more than the amount of the delinquent taxes, special assessments, penalties, interest, and costs.

When a surplus occurs, the county mails a claim form to the former owner and other interested parties of record; there is a six-month period after the sale to submit a claim.  Former owners or other interested parties may contact PRTS-TFL@co.washington.mn.us to ensure that we have the correct address on file for notification in the event the sale of the tax-forfeited land results in a surplus. 

Surplus proceeds only occur with the sale of tax-forfeited land at the two-part initial public auction sale that takes place within six months of forfeiture.  It does not apply to the sale of tax-forfeited land at subsequent inventory sales.

Mineral interests are severed and sold to the state for $50. A claim form is mailed to the former owner or other interested party in the event they opt to allege that the value of the mineral interest exceeds the amount of delinquent taxes, special assessments, penalties, interest, and costs.  There is a six-month period to submit a claim.    

Former owners or other interested parties can repurchase tax-forfeited land before the initial public auction, which occurs within six months of the later date -- the date of forfeiture, or the date the property was vacated.

Each year newly tax-forfeited property is offered for sale to the highest bidder at an initial public auction within six months of the later of the date of forfeiture, or the date the property was vacated.  

How it works:

All newly forfeited property is offered for sale, except for tax-forfeited land repurchased by the former owner or other interested party, or property withheld from sale by the Department of Natural Resources through the condemnation process. The initial public auction is a two-part sale.  

1. The property is first offered for sale with the most recent estimated market value as the starting bid. 
2. If the property remains unsold after 30 days, the starting bid is reduced to the amount of delinquent taxes, special assessments, penalties, interest, and costs.

Auction Notifications:

Notice of the public sale is published on this page in the “Current Sales” section at least 30 days prior to the sale.  There is an option at the bottom of this page to Subscribe to receive notices of future public tax-forfeited land sales.  Notice of the public sale is also published in the designated county newspaper.

Tax-forfeited land that did not sell at the initial public sale following the tax forfeiture becomes part of the inventory of tax-forfeited land managed by the county.   The property is classified and subject to review and approval by the municipality.  

A municipality or other governmental subdivision may acquire tax-forfeited land free of charge for an authorized public use. They may also purchase tax-forfeited land for an authorized public purpose or may acquire tax-forfeited land for less than market value to correct blight or implement affordable housing.

A tax-forfeited property may be conveyed to a local governmental subdivision or to the association of a common interest community if they were entitled to the property under a written agreement, but the conveyance failed to occur prior to forfeiture.

If a property remains unsold after the initial public auction, it is added to the county's inventory of tax-forfeited land. The property is classified and reviewed by the municipality.  Any property not withheld or acquired by the municipality or other governmental subdivision, and not subject to private sale provisions, may be appraised or reappraised and offered at an inventory public auction from time to time.   

Auction Format:

• Traditional one-part auction (not a two-part sale like the initial public auction)
• The minimum bid is the appraised value plus special assessments levied after forfeiture
• Property that does not sell at an inventory public auction sale may be available over the counter for the minimum bid on a first-come first-served basis. 
• The minimum bid cannot be reduced unless it is first reappraised, republished, and reoffered at a new public auction.

Notice of inventory public auction sales is published on this page in the “Current Sales” section at least 30 days prior to the sale.  There is an option at the bottom of this page to Subscribe to receive notices of future public tax-forfeited land sales.  Notice of public sales is also published in the designated county newspaper.

Certain tax-forfeited property, such as small slivers of land or unbuildable lots, may be sold privately to the adjoining landowner(s) if the property meets certain requirements or conditions:

1. The parcel cannot be improved because it does not comply with local zoning ordinances (e.g., minimum lot size, shape, frontage, or access). This means the owner would not be allowed to construct buildings on the parcel.
2. The private sale will encourage the city or township to approve the sale and allow it to be returned to the tax rolls.
3. The highest and best use of the land can be achieved by adding it to an adjoining parcel.

Private sales are typically sold by sealed bid to the highest bidder.  Only adjoining owners are allowed to bid.

Property that does not sell at a private sale may be available over the counter for the minimum bid to the owner of an adjoining parcel.  The minimum bid cannot be reduced until it is first reappraised, republished, and reoffered to all adjoining owners at a new sale.

Tax-forfeited land inventory is reviewed periodically to identify parcels meeting private sale criteria.  Contact us to request a private sale if a parcel of tax-forfeited land meeting these criteria is adjacent to your property.

An “Interested party” may repurchase tax forfeited land, defined as any party with an interest in the real estate including but not limited to an owner of the property, a lienholder, or any other party who has filed their name according to section 276.041.

All taxes, special assessments, penalties, interests, and costs that accrued or would have accrued if the parcel of land had not forfeited must be paid in full, plus the following additional costs, in order to repurchase tax-forfeited land: 

Payment must be made by cashier’s check, money order, or certified check.

Repurchase of tax-forfeited land must occur prior to the initial public sale which takes place within six months of the later of the forfeiture date, or the date the property was vacated.  Payment must be received by 4:30 p.m. of the business day preceding the sale.

The repurchase must also take place prior to the initiation of any condemnation proceedings of a property withheld or withdrawn from sale by the Department of Natural Resources.

1. Contact us to request a repurchase application and calculation of the amount due
2. Complete the application
3. Submit the signed application along with proof of ownership or other interest in the property and payment in full by cashier’s check, money order or certified check.

The deadline to submit the application and payment is 4:30 p.m. of the business day preceding the initial public auction.