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MN to settle with property owners

by | Apr 2, 2024 | Tax debt

In a case arising out Minneapolis, the US Supreme Court declared last year that when a county seizes someone’s house due to non-payment of property taxes, then sells it at auction, any excess funds need to go back to the homeowner. This is because of the 5th amendment’s protection against government seizing of assets without just compensation.

Court rulings, (as opposed to statutes), are usually made retroactive, so this applies to people who may have already lost their homes to tax forfeiture. The state of Minnesota is now agreeing to pay other homeowners up to $109 million, to settle lawsuits for similarly situated people.