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and personal property tax statements. are mailed out by.March 31, One-half (112) of the taxes on real property is due.on or before May 15. The remainder is.due on or before October 15. Real property taxes not paid by their due date are assessed a penalty which, depending on the type of property, increases. from 2% to 4%. on the day after the due date. In the case of the first installment of real property taxes due May 15, the penalty increases to 4% or 8% on June I . Thereafter, an additional 1 °Io penalty shall accrue each month through October 1 of the collection year for unpaid real property taxes. in the case of the second installment of real property taxes due October 15, the penalty increases to 6°la or 8% on November 1 and increases again to 81/6 or 12°Io on December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attachesto the unpaid tax. However, personal. property owned by a tax-exempt entity,. but which is treated as taxable by virtue of a lease agreement; is subject to the same delinquent. property tax penalties as real property. On the first business day of.January of the year following collection all delinquencies are subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien judgment with. the district court. 6y.March. 20 the. county auditor files a publication of legal action and a mailing notice of action to delinquent parties. Those property interests not responding to this notice have. judgment entered for the amount of the delinquency and associated penalties. The amount of the judgment is subject to a variable interest determined annually by the Department of Revenue, and. equal to the adjusted prime rate charged by banks, but in no event is the rate.less than 10% or more than 14%.. Property owners subject to a tax lien judgment generally have five years (5) in the case of all property located outside of cities or in the case of residential homestead, agricultural homestead and seasonal residential recreational property located within. cities or three (3) years with respect to other types of property to redeem the property. After`expiration of the redemption period, unredeemed properties are.declared tax forfeit with. title held in trust by the State of Minnesota for the respective taxing. districts. The county auditor, or equivalent thereof, then sells those properties not claimed fora public purpose at.auct'ion. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in. most cases being divided on the following basis: county - 40%; Township or city 20%; and school district - 40%. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are. property tax levy reduction aids; the renter's credit, which relates property taxes to income and provides relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the. effect of significant tax increases. The circuit. breaker credit and targeted. credits are reimbursed to the taxpayer upon. application by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, county program aid and disparity reduction aid. Debt Limitations All Minnesota municipalities (county,. cities,. townships and school districts). are subject. to statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining after deducting from.gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregation of the principal of the following: Obligations issued for improvements which are payable wholly or partially from the proceeds of special assessments levied upon benefited property. 59