mn assignment of lien

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Liens and the Collection Process

A lien is a legal claim filed with the Office of the Minnesota Secretary of State or county recorder. We may file a lien at any time when an individual or business owes a debt to the state. 

A l ien allows  us to take real property (land and any permanent buildings, fixtures, or improvements on that land) or personal property (movable property, such as vehicles, furniture, boats, and collectibles) owned by an individual or business in Minnesota to pay your debt.

Liens extend the time we can take action to resolve your debt to 10 years. For more information, see Statute of limitations .  Once a lien is recorded, it becomes public information.

Minnesota law requires us to add a $30 fee to the debt of the taxpayer for filing and releasing each lien. ( See Minnesota Statutes, section 270C.63  and  section 16D.08 ). 

We will release the lien when the debts on the lien are paid in full with  secured funds . If you pay any other way, we will release the lien 30 days from the day we receive your payment.

We cannot file a lien on your property when you are in bankruptcy . A bankruptcy extends the time in which we can file a lien for debts that are not discharged. It does not extend the time to renew liens that were filed before the bankruptcy.

No. However, anyone can search public records to locate recorded liens, including credit bureaus.

If you believe we filed a lien in error, you may request an Administrative Review. If we determine it was filed in error, we will release the lien.

See Minnesota Statute 270C.63, subdivision 15 .

You may request a lien subordination or partial lien release if it will help resolve the balance due. If approved, you are still liable for your debts and the collection process will continue.

Lien Subordination

Primarily for mortgage refinancing, a lien subordination puts a new mortgage or UCC1 document at a higher priority than our lien. Our lien stays attached to the property.

Partial Lien Release

If you want to sell real or personal property and proceeds of the sale will not be enough to pay off your lien, you may ask for a partial lien release. A partial release detaches our lien from your property, but it stays attached to you until the debt is paid in full.

Definitions

• Real property: Land and any buildings or permanent structures, like your house.

Personal property: Movable property that is not attached to the land.

What is the Process?

Submit your request in writing for:

• Lien subordination
• Partial Lien Release on real property

Partial lien release on personal property

We will contact you within two weeks of receiving your application with more information.

We may continue to take collection actions while we consider your request.

Our Determination

If we accept your request, we'll release or subordinate our lien after we receive the payment amount listed on the commitment letter and closing documents.

If we deny your request, we'll send you a denial letter. Our liens remain attached to your property until the balance is paid in full. We may deny your request if:

• There is enough equity in the property to pay off the attached liens
• The subordination or partial lien release will not help resolve the balance due

The application is missing documents

We must file a lien within five years of the assessment date . If your debt is the result of a Commissioner Filed Return (CFR) , that period begins with the date we file the CFR.

A lien expires after 10 years. We can renew it before it expires and continue to take  collection actions .

These time limits are part of Minnesota Statute 270C.63, subdivision 9 .

• A lien attaches to all proceeds if you sell your property.
• If you die, the property becomes part of your estate. A lien remains attached to the property.
• If there are multiple owners, the lien only affects the person whose name is on the lien.
• If you own as a joint tenant, and the other joint tenant dies, the lien on the deceased owner ends.
• If you own as tenants in common, and the other tenant dies, their share of the property goes to the heirs. The lien remains attached to the property.

We transcribe (copy) a lien between one county and another county, or between a county and the Office of the Minnesota Secretary of State (OSS) if:

• You move to a new county 
• We find real property in another county 

A transcription may be filed within ten years of the original filing date. It does not extend the statute of limitations.

Contact Info

• 651-556-3003
• 800-657-3909
• 651-556-5116 (fax)

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Office of the Revisor of Statutes

2023 minnesota statutes.

• PROPERTY TAXES

Chapter 277

Section 277.20.

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Recent History

• 2003 Subd. 2 Amended 2003 c 127 art 5 s 30
• 2001 Subd. 8 Amended 2001 c 195 art 2 s 18

277.20 LIEN FOR PERSONAL PROPERTY TAX.

Subdivision 1. creation of lien..

Except for property exempt under subdivision 3, the tax assessed on personal property or manufactured homes and collectible under this chapter is a lien on all the real and personal property within this state of the person liable for the payment of the tax. The lien arises on January 2 of the year in which the tax is assessed and continues until the tax is paid. For purposes of this section and section 277.21 , "tax" also includes penalty, interest, recording fees, sheriff fees, and court costs that may accrue on the unpaid tax.

Subd. 2. Filing of lien for enforceability.

The lien imposed by subdivision 1 is not enforceable against any purchaser, mortgagee, pledgee, holder of a Uniform Commercial Code security interest, mechanic's lienor, or judgment lien creditor until a notice of lien has been filed by the county treasurer in the office of the county recorder of the county in which the property is situated, or, in the case of personal property, in the office of the secretary of state. Priority of a lien created under Laws 1991, chapter 291, article 15, shall be determined in accordance with the provisions of section 507.34 . Liens filed in the office of the county recorder shall be filed with the state tax liens filed pursuant to section 270C.63 , and the index shall indicate the name of the county for which the lien was filed. If the land is registered, the notice of lien shall be filed in the office of the registrar of titles of the county in which the property is registered. Notwithstanding any other law to the contrary, the county treasurer is exempt from the payment of fees when the lien is offered for filing or recording; the fee for filing or recording the lien must be paid at the time the release of lien is offered for filing or recording. Notwithstanding any law to the contrary, the fee for filing or recording the lien or the release of lien is $15.

Subd. 3. Exempt property.

The lien imposed on personal property by this section, even though properly filed, is not enforceable against the personal property listed as exempt in sections 550.37 , 550.38 , and 550.39 , but manufactured homes otherwise exempt under section 550.37, subdivision 12 , are subject to lien under this section.

Subd. 4. Period of limitations.

Notwithstanding any other law to the contrary, the lien imposed by this section is enforceable from the time the lien arises and for ten years from the date of filing the notice of lien. The notice of lien must be filed by the county treasurer within five years after the date of assessment of the tax. A notice of lien filed in one county may be transcribed to any other county within ten years after the date of its filing, but the transcription does not extend the period during which the lien is enforceable. A notice of lien may be renewed by the county treasurer before the expiration of the ten-year period for an additional ten years. The taxpayer must receive written notice of the renewal.

Subd. 5. Enforceability of lien.

The lien imposed by this section is enforceable by levy as authorized in section 277.21 , or by judgment lien foreclosure as authorized in chapter 550.

Subd. 6. Notice of mortgage foreclosure or contract termination.

If a lien has been filed by the county treasurer against real property under this section, and, after the recording of the lien, a mortgage foreclosure upon the real property is commenced under chapter 580, or a termination of contract of sale of the real property is commenced under section 559.21 , notice of the mortgage foreclosure or termination of contract of sale must be mailed to the county treasurer at least 25 days before the foreclosure, sale, or date of termination. Notice need not be given under this subdivision if the lien has been filed within 30 days or less before the foreclosure, sale, or date of termination. The notice must contain the following information:

(1) the name and address of the taxpayer;

(2) a copy of the notice of mortgage foreclosure or contract for deed cancellation;

(3) a copy of the lien filed by the county treasurer;

(4) the total unpaid balance of the mortgage or contract for deed; and

(5) a legal description of the property.

Upon a request of a party providing notice under this subdivision, the county treasurer shall send to the party within one business day of receiving the notice a receipt for the notice.

Subd. 7. Filing entitlement.

Execution of notices of liens or of other notices affecting personal property tax liens by the county treasurer or a delegate entitles them to be filed, and no other attestation, certification, or acknowledgment is necessary.

Subd. 8. Lien search fees.

Upon request of a person, the filing officer shall issue a certificate showing whether there is on file, on the date and hour stated in the certificate, any notice of lien or certificate or notice affecting any lien filed after December 31, 1991, naming a particular person, and giving the date and hour of filing of each notice or certificate naming the person. The fee for a certificate is as provided by section 336.9-525 or 357.18, subdivision 1 , clause (3). Upon request, the filing officer shall furnish a copy of any notice of lien, or notice or certificate affecting a lien, for a fee of $1 per page.

1991 c 291 art 15 s 4 ; 2001 c 195 art 2 s 18 ; 2003 c 127 art 5 s 30 ; 2005 c 151 art 2 s 17

Official Publication of the State of Minnesota Revisor of Statutes