SAINT PAUL, MINN. -- On Sunday, the Minnesota Legislature passed HF 5247, the 2024 Tax bill, which included language to establish a new tax forfeiture system in line with the Minnesota Supreme Court decision in Tyler v. Hennepin County. Representative Sandra Feist (DFL – New Brighton) authored the provision in the report that sets up the new system. The legislation passed in conjunction with a separate bill to fund the settlement of claims by property owners harmed by the previous unconstitutional tax forfeiture laws.
“This new tax forfeiture system represents a dramatic shift in protocol that will protect the interests of homeowners who face property tax forfeiture,” said Rep. Feist. “The mechanisms created under the legislation passed in the wake of the Tyler decision will ensure that property owners receive compensation, that the state and counties work together to cover the associated cost, and that there is transparency to the claims process.”
Last May, the U.S. Supreme Court ruled in Tyler v. Hennepin County that when the counties kept any excess proceeds from the sale of tax forfeited land beyond the total delinquent property taxes, costs, and fees owed, this was a violation of the Takings Clause. The bill creates a process for individuals to file a claim for monetary compensation of excess proceeds from the sale of their property after the forfeited property is sold. In addition, it creates additional notice and supports for vulnerable Minnesotans facing forfeiture that will hopefully help keep them in their homes.
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