Supreme Court Hears Property Tax Home Equity Dispute

Can a state pocket your surplus home equity while collecting past-due property tax?

view of residential neighborhood for property tax home equity case
(Image credit: Getty Images)

Property taxes and home equity are in the news because the U.S. Supreme Court heard arguments in a case involving the sale of a  94-year-old Minnesota woman’s home for overdue property taxes. The court’s ruling in Tyler v. Hennepin County will be important for millions of homeowners across the United States. 

  • More than a dozen states can seize your home and sell it to cover your property tax bill while pocketing the profit from your surplus home equity. 
  • The Supreme Court will decide whether that approach violates the U.S. Constitution’s 5th Amendment guarantee of just compensation or the 8th Amendment ban on excessive fines.

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.