Senator Limmer’s bill set to Repeal Government ‘Home Equity Theft’

ST. PAUL – As a result of the recent U.S. Supreme Court decision in Tyler v. Hennepin County, Senator Warren Limmer (R-Maple Grove) announced he will revive legislation meant to stop government from keeping excess cash equity found in citizen’s homes after a tax forfeiture. 

Tyler v. Hennepin County was a landmark decision for protecting citizens’ wealth under the Fifth Amendment, which stipulates the government cannot take an individual’s property value for its own use without just compensation. When Hennepin County sold the condo of a Mrs. Tyler, a 94-year-old Minneapolis homeowner at a tax auction for $40,000, the County kept $15,000 for what was owed in back taxes, penalties, and other fees, as well as the excess property value of $25,000 that remained. The Supreme Court ruled that leftover funds should have been given to Tyler.   

“This was an atrocious ‘taking’ by Hennepin County! In Minnesota, this practice has been going on for years,” said Limmer. “I’m sure government bureaucrats all over the state are wailing over their lost money-grab authority right now. The government has no right taking away excess home equity after a past due property tax has been paid in full.”  

Once known that the government had authority to keep all the money from a tax forfeiture, my bill was created to repeal this form of home equity theft.  I will seek an immediate hearing in the next legislative session in order to protect citizens from this government abuse,” said Senator Limmer. “Not everyone can go to the U.S. Supreme Court to seek justice from all-powerful government interests.”   

“I am very grateful the Supreme Court upheld Constitutional principle and sided with Mrs. Tyler. I look forward to repealing this illegal government practice once and for all,” Limmer concluded.  

The bill introduced a few months ago strikes existing statutory language and directs the funds only to the taxing jurisdiction in the amount that was owed at forfeiture and specifically states “any balance must be returned to the owner of the parcel at the time the property was forfeited to the state.”