Fighting Back Against Unfair Tax Foreclosures.

"The taxpayer must render unto Caesar what is Caesar's, but no more."
– The United States Supreme Court

If you or someone you know has lost property to a government foreclosure, we want to talk to you

When Geraldine Tyler lost her home to tax foreclosure, she didn't just lose the house – she lost everything she had worked for. The county sold her property to pay $15,000 in taxes, kept the entire $40,000 from the sale, and left her with nothing. This practice, known as "home equity theft," or "Tax Theft" affected thousands of Americans until someone stood up and said "enough." They challenged the government, and won.

In 2023, the Supreme Court's landmark decision in Tyler v. Hennepin County made an important first step in putting a stop to something very wrong that had been going on for a long time. The Court ruled unanimously that when governments take property for unpaid taxes, they must pay "just compensation" return any surplus value to the original owner. Taking more than what's owed isn't just unfair – it's unconstitutional.

You Are Not Alone

If you've lost your property to tax foreclosure, you should know:

Understanding Tax Foreclosure

Tax foreclosure occurs when property owners fall behind on their property taxes or sometimes on sewer and water bills. While governments have the right to collect unpaid taxes, they don't have the right to take more than they're owed. Here's what typically happens:

How We Can Help

At Island Justice, we believe in fighting back against unfair practices that prioritize government profits over people's fundamental rights. We can help you:

Don't let unfair practices rob you of your property's value. Contact Island Justice today for a free consultation. Together, we can fight for justice and work to recover what's rightfully yours.

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A more in depth and Narrative Discussion of Tyler

The Story of Tyler v. Hennepin County: A Landmark Victory for Property Rights

In 2010, Geraldine Tyler, a 94-year-old Minnesota resident, made the difficult decision to leave her condominium for a senior living apartment. Like many elderly Americans facing financial hardship, she fell behind on her property taxes. By 2015, she owed around $15,000 in unpaid taxes, interest, and penalties. What happened next would eventually lead to a landmark Supreme Court decision that would change how governments across America handle tax foreclosures.

Following Minnesota law at the time, Hennepin County seized Tyler's condo and sold it for $40,000. Instead of returning the surplus $25,000 to Tyler after covering her tax debt, the county kept everything. This practice, known as "home equity theft," or "tax theft" had been common across many states, harming countless property owners who lost not just their homes, but every dollar of equity they had built up over years or decades.

Tyler's story might have ended there, like so many others before her. Instead, it became the catalyst for a constitutional challenge that would reach the highest court in the land. In April 2023, the Supreme Court unanimously declared that governments cannot seize more than they are owed in tax debt without violating the Constitution's Takings Clause.

Writing for a unanimous Court, Chief Justice John Roberts grounded the decision in America's long legal tradition of protecting property rights. He explained that from the nation's earliest days, property owners have maintained a right to surplus proceeds from tax sales. This wasn't just a matter of fairness – it was a fundamental constitutional principle. As Roberts memorably wrote, "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." In other words, while the government can collect what it's owed, it cannot use tax debt as an excuse to take everything.The decision also left open the question of how much Ms. Tyler and people like her should be entitled to. In every most other government taking cases, the property owner is entitle to the fair market value of the property taken. In many cases, it appears, governments seem to be selling at much less than fair market value.

The Court's decision cut through various technical arguments the county raised in defense of its practice. It didn't matter that Tyler had received proper notice of the foreclosure, or that Minnesota law authorized the taking, or that similar practices had existed in some places historically. The Constitution's protection of property rights trumped all these considerations. As the Chief Justice put it, invoking biblical imagery, "The taxpayer must render unto Caesar what is Caesar's, but no more."

This ruling sent shockwaves through local governments across America. States that had similar laws allowing governments to keep surplus equity from tax sales now had to change their practices. More importantly, it opened the door for people who had lost their homes to tax foreclosures to seek justice and recover their lost equity.

The implications of Tyler's victory continue to unfold. Governments must now ensure their tax collection practices respect property owners' constitutional rights. When they sell property for tax debt, they must return any surplus to the original owner. This doesn't mean governments can't collect unpaid taxes – they certainly can and should. But they cannot use tax debt as a pretext for taking more than they're owed.

For property owners who have lost their homes to tax foreclosure, Tyler's case offers hope and a potential path to recovery. The Supreme Court has made clear that keeping surplus equity from tax sales violates the Constitution. This means that people who lost their homes – and all their equity – to tax foreclosure may have claims to recover what was wrongfully taken from them.

However, time is critical. Various legal deadlines may limit how long people have to bring claims based on past foreclosures. The specific procedures for seeking recovery vary by state, and some states may try to limit the decision's retroactive application. This makes it crucial for affected property owners to seek legal help promptly to understand and protect their rights.

The story of Tyler v. Hennepin County is more than just a legal victory – it's a reminder that the Constitution's protections are not mere abstractions but practical shields against government overreach. It shows that one person's stand against an unfair system can create change that helps thousands of others. Most importantly, it demonstrates that when people fight back against unjust practices, they can win.

For those who have lost property to tax foreclosure, Tyler's victory means they're not alone, and they may have options to recover what was taken from them. While the legal process can be complex, the fundamental principle is now clear: when the government takes property for unpaid taxes, it must return any surplus value to the owner. This is not just a matter of fairness – it's a constitutional requirement.

The impact of this decision will be felt for generations to come, protecting property owners from government overreach and ensuring that tax collection doesn't become property theft. Geraldine Tyler's courage in challenging an unjust system has helped establish a crucial precedent that will protect countless other Americans from similar losses. Her story reminds us that justice, while sometimes slow, is worth fighting for, and that it's never too late to stand up for what's right.