Rolling Back Civil Asset Forfeiture
BY Herschel Smith1 year, 5 months ago
When local bureaucrats in Hennepin County, Minnesota, seized an elderly woman’s home over a small tax debt, sold it, and kept the profit, they likely had no idea they would set in motion a series of events that would cripple the practice known as “home equity theft” across the country.
Yet that’s what happened. The Supreme Court on Thursday unanimously ruled that the government violated the Constitution when it took possession of Geraldine Tyler’s condo over an overdue property tax bill, auctioned the home, and pocketed the proceeds in excess of what she actually owed.
Tyler, who is now 94 years old, purchased the Minneapolis-area condo in 1999. But a series of events, including a neighborhood shooting, prompted her to relocate to a retirement community in 2010, at which point it became difficult for her to pay both her new rent and the property taxes on her former home. She accrued a $2,300 tax bill, which turned into an approximately $15,000 bill after the government added on $13,000 in penalties, interest, and fees. Local officials then sold the home for $40,000—and kept the remaining $25,000.
Tyler spent years arguing that such a taking was unconstitutional. But despite the case appearing fairly black and white from the outset, she had no such luck in the lower courts. When her case went before the U.S. Court of Appeals for the 8th Circuit, its ruling was also unanimous—in favor of the government. “Where state law recognizes no property interest in surplus proceeds from a tax foreclosure-sale conducted after adequate notice to the owner, there is no unconstitutional taking,” wrote Judge Steven Colloton.
The Supreme Court forcefully overturned that decision today. “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,” wrote Chief Justice John Roberts for the Court. “The taxpayer must render unto Caesar what is Caesar’s, but no more.”
At the heart of the case is the Takings Clause of the Fifth Amendment, which stipulates that “private property [shall not] be taken for public use without just compensation.” In explaining the justices’ decision, Roberts traced the spirit of the law back to the Magna Carta, then to English law, and ultimately to the States, buttressed by several Supreme Court precedents which, as Roberts wrote, “have also recognized the principle that a taxpayer is entitled to the surplus in excess of the debt owed.”
Tyler is far from the only victim of this practice. Home equity theft is legal in Alabama, Arizona, Colorado, Illinois, Maine, Massachusetts, Minnesota, Nebraska, New Jersey, New York, Oregon, South Dakota, and the District of Columbia, although today’s ruling should hamstring those forfeiture schemes.
Civil asset forfeiture is thievery and therefore sinful. There is no other way to see it, and every individual, whether associated with the government or not, who has participated in or enabled such a scheme, should be ashamed, and will certainly face eternal punishment. It’s an abomination that the Eighth Circuit found in favor of the state, and equally absurd that the Supreme Court took so long to take this head on and smash it to the ground in pieces.
On May 29, 2023 at 9:02 am, PGF said:
They stole a widow’s home and flipped it for profit? And people wonder why America is under the judgment of God.
On May 29, 2023 at 9:22 am, Bill Buppert said:
Property taxes mean that you never own property in the US. You are renting it from the state.
On May 29, 2023 at 11:09 am, Matt said:
The idea that govt can take your property because you fail to pay some obligation the same arbitrarily says you owe us wrong to the point of being ludicrous. It’s no different than armed robbery by a common thug and resistance in the same manner is justifiable. If people would wake up, get off their backsides, do more than wring their hands while saying, “I’ll see you in court” and instead dealt with things head on, this nonsense just might stop.
On May 29, 2023 at 12:23 pm, Paul B said:
It won’t stop. My sister manages this for dodge county. Her take is that the property will still be stolen, just the sale price will be the outstanding tax debt.
Course she did not call it stolen.
Yes, I have to set aside 350 a month to pay my rent on “my” property.
She also pointed out the property would have been abandoned for 7 or more years for this to completely play out.