A Confession of Judgment is a payment plan to pay back your delinquent taxes to avoid tax forfeiture. It is a 5- or 10-year payment plan with an interest rate of 5 percent annually (calculated at .4167 percent monthly) or 10 percent annually (calculated at .8333 percent monthly) on the unpaid balance. The payment plan requires a 10 percent or 20 percent down payment of the total delinquent tax depending on the classification of the property.
With a Confession of Judgment, the delinquent tax amount due on a parcel of property for one or more years is combined under a contract. The party “confessing judgment” agrees to pay the total contract amount in equal, annual installments for a specified number of years.
Eligibility requirements
You must be the owner, lender (mortgagee), buyer (under a contract-for-deed agreement), power of attorney, or someone holding a life estate on the property.
Property types vary in eligibility based on their usage class. The property must meet the eligibility requirements established by Minnesota Statutes 273.13 and 279.37.
Contract requirements
- Valid identification (driver’s license, ID card, passport)
- Two separate checks or cash
- 10 percent or 20 percent down payment (depending on the classification)
- Set-up fee
- District Court filing fee
- Current year taxes have to be kept current and MUST be received in our office by Dec. 31of each year; penalties apply if paid after due dates.
Payment information
Partial payments are acceptable. Payments will be applied to any penalties and interest first; remaining funds are applied to the principle/base tax. Any excess principle payment is applied to the next installment(s). Be sure the full payment due is paid by the due date if making partial payments.
An annual notice is mailed by Nov. 30 each year, if you have not yet paid your Confession of Judgment, current year taxes or both.
Confession of Judgment payments are due on or before Dec. 31 of each year.
There is no penalty to pay off the Confession of Judgment early.
Default of contract
Properties are considered to be in default of contract if the annual Confession of Judgment installment (principle and interest) and current year taxes (plus any penalty due) are not received in our office by Dec. 31. If your property is in default on Jan. 2, you will receive a certified letter from Dakota County with specific details pertaining to how you can prevent the forfeiture of your property.
Please be aware you can only take out two Confession of Judgments on a parcel for the same delinquent years. If you have exhausted the two Confession of Judgments, the property will be subject to the forfeiture laws .
Appointments are required to set-up a Confession of Judgment. They are processed at the Administration Center only.
For more information or to set up an appointment call 651-438-4576.
