Supreme Court Sides With 94-Year-Old Woman Whose Home Equity Was Seized By County

The Supreme Court has ruled in favor of a 94-year-old woman in Minnesota who had her condo sold by the county to pay for unpaid property taxes. The county kept the proceeds, which were far more than the taxes owed. This is part of a larger issue of “home equity theft,” which occurs in 12 states and DC when local governments and private investors can seize more than what is owed from homeowners who fall behind on property tax payments. The case went to the Supreme Court, which found that Minnesota’s law allowing counties to retain windfalls from property owners was unconstitutional. The court ruled that the Fifth Amendment’s Takings Clause was designed to prevent the government from forcing individuals to bear public burdens that should be borne by the public as a whole. Minnesota law already protects taxpayers’ rights to surplus in all other forms of taxes, except for real property taxes. The Supreme Court’s decision means that Minnesota’s property tax forfeiture laws must be revised.



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