Supreme Court rules in favor of woman, 94, whose condo was sold for profit by county
The Supreme Court has unanimously sided with a 94-year-old grandmother whose house was seized by the county and sold for profit over a modest unpaid tax bill.
Geraldine Tyler, 94, of Minneapolis, was victorious in the Supreme Court on Thursday after it was ruled that the county acted unconstitutionally by seizing her home, selling it, and pocketing $25,000 on top of what she owed in taxes.
Tyler owned a condo in Hennepin County, Minnesota, that accumulated about $15,000 in unpaid real estate taxes, originating from an original $2,300 debt. The county seized her condo in 2015 and sold it for $40,000.
‘The taxpayer must render unto Caesar what is Caesar’s, but no more,’ wrote Chief Justice John Roberts in the order, published on Thursday.
‘I’m happy about what this win will mean for a whole lot of people, but especially seniors who would otherwise lose their savings and be put out on the street.’ Tyler told DailyMail.com through her lawyers.
Geraldine Tyler, 94, of Minneapolis, was victorious in the Supreme Court on Thursday after it was unanimously ruled that the seizure and sale of her home by the county was illegal
The house was seized in 2015 and a year later sold for $40,000 – the county kept all of the proceedings as Minnesota is one of the states that allow local jurisdictions to do so
In her claim Tyler alleged that the county acted in violation of the Takings Clause of the Fifth Amendment and the Excessive Fines Clause of the Eighth Amendment.
The justices ruled 9-0 that Hennepin County violated Tyler’s constitutional rights by taking her property without paying ‘just compensation’.
‘The county had the power to sell Tyler’s home to recover the unpaid property taxes. But it could not use the toehold of the tax debt to confiscate more property than was due,’ Chief Justice John Roberts wrote for the court.
‘A taxpayer who loses her $40,000 house to the State to fulfill a $15,000 tax debt has made a far greater contribution to the public fisc than she owed.’
Tyler, who now lives in an apartment building for older people, owed $2,300 in unpaid taxes, plus interest and penalties totaling $15,000, when the county took title to the one-bedroom apartment in 2015.
The county claimed she did nothing to hold onto her residence, which was sold the next year.
Minnesota is among around a dozen states that ‘engage in home equity theft’, according to the Pacific Legal Foundation, a nonprofit law firm focused on property rights that represented Tyler for free.
At least 8,950 homes were sold because of unpaid taxes and the former owners received little or nothing in those states between 2014 and 2021, according to the group.
Justices ruled 9-0 that Hennepin County violated Tyler’s constitutional rights by taking her property without paying ‘just compensation’
The other states are: Alabama, Arizona, Colorado, Illinois, Maine, Massachusetts, Nebraska, New Jersey, New York, Oregon and South Dakota, the group said.
Geraldine’s case will now go to the trial court, where she will argue that she is owed the fair market value of her property, minus her debt.
There has been no explanation as to why Tyler stopped paying her property taxes when she moved from the condo, where she had lived since 1999.
The court rejected the county’s arguments that Tyler could have sold the property and kept whatever was left after paying off the mortgage and taxes, refinanced her mortgage to pay the tax bill or signed up for a tax payment plan.
Lower courts had sided with the county before the justices agreed to step in.
Dan Rogan, an Assistant County Administrator and Hennepin County Auditor, told DailyMail.com in a statement that given the ruling, Minnesota’s property tax forfeiture laws will be revised.
‘Based on today’s decision which found Minnesota’s law unconstitutional, Minnesota’s property tax forfeiture laws must be revised,’ he wrote.
‘Hennepin County will work closely with the Minnesota Legislature to create a process that is consistent with the Supreme Court’s decision.’