Does a tax-forfeited parcel need DNR review?

Important note about this page

The purpose of this page is to provide a quick guide to the issues reviewed by the DNR. However, this is a complex area of law, and the statutes should be reviewed for a complete understanding of authority as to the DNR's review of proposed sales of tax-forfeited lands managed by the counties. This information does not cover all issues related to sale of DNR-administered tax-forfeited lands held free from the trust in favor of the taxing districts or consolidated conservation lands.

The 2024 legislative session brought changes to the laws governing the management of tax-forfeited properties in Minnesota, including both the surface and mineral estates. Technical and legal staff from the Department of Natural Resources (DNR) are collaborating with the Association of Minnesota Counties (AMC), Hennepin County, Saint Louis County, and the Department of Revenue to establish a clear process outlining the DNR's responsibility in managing properties retained from sale, mineral payments, and claims for mineral valuation and additional payments.

State statute requires county notification of the DNR for a few parcel types before a possible forfeiture sale by the county.

On August 9, 2024, a letter was sent to all 87 counties and AMC explaining the changes to the laws governing the management of tax-forfeited properties in Minnesota, per the Minnesota Session Laws – 2024, Regular Session.

Does a tax-forfeited parcel need DNR review?

No

  • Parcels that do not have any characteristics listed below do not require DNR review.
  • The DNR receives a high volume of parcels for review. Many of the parcels submitted for review do not have any characteristics listed below. For example, many of the parcels submitted are platted subdivision lots that do not have any of the below characteristics. The DNR asks counties to submit only parcels that require review in order to expedite DNR’s review process.

Yes

The DNR asks counties to submit only parcels that require review in order to expedite DNR’s review process. The recent legislative changes apply to tax-forfeited lands in three categories based on the date of foreclosure. Groups one and two apply to tax-forfeited parcels that went into foreclosure before Jan. 1, 2024. Group 3 applies to tax-forfeited parcels that went into foreclosure on or after Jan. 1, 2024 and require a mandatory public sale by the county auditor. Parcels requiring DNR review are summarized below. Tax forfeit review criteria.

Group 1: Forfeiture occurred prior to 2024 AND prior to:

  • Aug. 16, 2012 for Hennepin County;
  • June 2, 2016 for St. Louis County; or
  • June 23, 2016 for all other counties
Upon receipt of the complete review packet, the DNR is committed to completing our review within sixty (60) days for parcels that went into foreclosure on or before January 1, 2024.

Group 2: Forfeiture falls within settlement dates for counties as specified below AND county is participating in the settlement:

  • Aug. 16, 2012 – Dec. 31, 2023 for Hennepin County;
  • June 2, 2016 – Dec. 31, 2023 for St. Louis County; or
  • June 23, 2016 – Dec. 31, 2023 for all other counties.
Upon receipt of the complete review packet, the DNR is committed to completing our review within sixty (60) days for parcels that went into foreclosure on or before January 1, 2024.

Group 3: Forfeiture occurred after Jan. 1, 2024

Upon receipt of the complete review packet, the DNR is committed to completing our review within thirty (30) days for parcels that went into foreclosure after January 1, 2024.

Group 1: Forfeiture occurred prior to 2024
The county will send DNR-LAM regional staff the forfeiture list showing only those properties which fit the categories for withdrawal of sale as they existed prior to the tax forfeiture law change in 2024:

  1. Standing Timber: Minn. Stat., sec. 282.01, subd. 3
  2. Waterfront: Minn. Stat., sec. 282.018, subd. 1
  3. State Park: Minn. Stat., sec. 85.012, subd. 1 and State Recreation Area: Minn. Stat., sec. 85.013, subd. 1
  4. Non-forested Marginal Land and Wetland: Minn. Stat., secs. 103F.535 and 282.018, subd. 2
  5. Memorial Forest: Minn. Stat., sec. 459.06, subd. 3
  6. Mineral Lease or Mining Unit: Minn. Stat., sec. 282.01, subd. 8
  7. Peat: Minn. Stat., sec. 92.461
  8. Land Classified as “Conservation”: Minn. Stat., sec. 282.011, subd. 1
  9. Red Lake Game Preserve and other Consolidated Conservation Areas: subject to above requirements
  10. Trust Fund Lands and Other DNR Administered Lands: Minn. Stat., sec. 92.214
DNR informs the county of parcels which are to be withdrawn from sale or transferred to DNR control. There is no condemnation of the lands by the DNR and no payment to the county for those lands which are to be transferred to DNR administration by statute.
Group 2: Forfeiture falls within settlement dates
Based on the settlement terms outlined above, counties were asked to make a good faith effort to sell all properties that were forfeited between the applicable start date and December 31, 2023, other than those that are classified as conservation lands, those that are part of a rehabilitation program, and those in which title is no longer held in trust by the state of Minnesota for taxing districts, per Minnesota Session Laws – 2024, Regular Session Chapter 113 - MN Laws.
Group 3: Forfeiture occurred after Jan. 1, 2024
There are just a few parcel types that require DNR review for withholding from sale. Counties should not be sending DNR their full forfeiture list.

Please be advised the criteria for parcels requiring review have changed. The updated characteristics are as follows:

  1. State Park – parcels within the boundary of a state park are withdrawn from sale per Minn. Stat., sec. 85.012, subd. 1.
  2. State Recreational Area – parcels within the boundary of a state recreation area as defined by session laws are withdrawn from sale per Minn. Stat., sec. 85.013, subd. 1.
  3. Mineral Lease or Mining Unit – Lands or stockpiled materials subject to state mineral lease or designated as a mining unit by the DNR commissioner may be withheld from sale per Minn. Stat., sec. 282.01, subd. 8.
  4. Waterfront – Parcels bordering on or adjacent to meandered lakes and other public waters and watercourses. The DNR commissioner must approve sale of parcel with waterfront of 150 feet or less. Parcels with waterfront of more than 150 feet are withdrawn from sale; however, a county is permitted to sell such a property upon written authorization from the DNR commissioner per Minn. Stat., sec. 282.018, subd. 1.

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