State Owes Seized Home Surplus to Tax Debtor, Justices Say (3)

Local governments that keep surplus proceeds when a homeowner’s property is seized and sold to settle tax debts commit unconstitutional takings, the US Supreme Court ruled Thursday.

Geraldine Tyler, now in her 90s, moved out of her Minneapolis condominium and into a senior community in 2010 when she became concerned about crime. After she ran up a $15,000 tax debt on the condo, including fines, costs, and interest, Hennepin County sold the property for $40,000 and didn’t give Tyler the surplus.

“The county had the power to sell Tyler’s home to recover the unpaid property taxes. But it could not ...