On May 25, 2023, the U.S. Supreme Court in a 9-0 decision ruled in favor of the plaintiff in Tyler vs Hennepin County Minnesota, 22-166. The decision will stop about a dozen states and counties, including Oregon, from keeping surplus funds from the sale of homes that has been foreclosed and sold for back taxes. States and counties can only keep taxes owed, and the rest goes back to the owner. No more 'windfalls'.

The case was brought by Geraldine Tyler, a 94-year-old woman from Minneapolis who owed $2,300 in unpaid taxes, plus interest and penalties totaling $15,000 when the county took title to her one-bedroom apartment in 2015. The county sold her home for $40,000 and kept the remaining $25,000. The court ruled that the county violated the takings clause of the Fifth Amendment, which blocks the government from taking private property without "just compensation." They ruled Tyler's constitutional rights were violated by taking her property without paying "just compensation."

Alabama, Arizona, Colorado, Illinois, Maine, Massachusetts, Minnesota, Nebraska, New Jersey, New York, Oregon, South Dakota, and the District of Columbia have historically kept the surplus profits after property tax sales.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

Oregon took steps to prevent foreclosure during the pandemic, but many still lost their homes. The Oregon Department of Revenue states on foreclosure: "At the end of the redemption period (10-30 days), the tax collector deeds the property to the county and all taxes are canceled. When the tax collector deeds the property to the county, you lose all rights to the property."


--Ritch Hanneman

Post Date: 2023-06-09 13:22:46

Last Update: 2023-06-10 08:09:27