Have you ever miscalculated a bill? Typically, a late fee or a strongly worded warning follows. But do you know what happens if you miscalculate and underpay your property taxes
— even by just a few dollars?
In at least 11 states, the government will seize your property, sell it, and leave you with nothing.
Property taxes must be paid, and it’s legal for governments to take property to pay an outstanding debt. But the government shouldn’t keep any more money beyond what’s owed. The rest is your property: home equity that you’ve worked hard to build.
In courts and legislatures, Pacific Legal Foundation fights to protect your nest egg and prevent governments from stealing homeowners’ equity.
Consider the case of Uri Rafaeli, who owned a home in Oakland County, Michigan. He mistakenly underpaid his property taxes by $8.41. To cover the debt, the county sold the property at auction for $24,500 and kept every penny of the proceeds. On July 17, 2020, the Michigan Supreme Court ruled that counties cannot steal the savings people stored away in their homes.
While Minnesota is often called the land of 10,000 lakes, local governments today treat it as the land of 10,000 takes. Between 2014 and 2020, Minnesota counties took thousands of homes and millions o…
A just government cannot oppress the poor or exploit relatively small mistakes to seize lifesavings at their residents’ expense. And yet, Michigan counties are fighting in courts across the state to…
To collect $1,200 plus interest, a Nebraska county took Walter Barnette’s land worth $25,000 and gave it to an investor. Walter didn’t get a penny of his equity in the land, and he had no idea he …
As businesses closed and staff were laid off as a result of COVID-19, millions of Americans were faced with a personal financial crisis. As a result, some local governments have temporarily adjusted p…
Property rights are one of the most fundamental constitutional provisions that protect Americans against government abuse. Unfortunately, these rights are regularly under assault by state and local ta…
Sixty-seven-year-old Deborah Foss has spent the winter living out of her car in New Bedford, Massachusetts. If you’ve ever experienced a Massachusetts winter, you know it has the power to chill you to the bone. It’s not ideal weather for anyone to endure, but imagine spending the coldest months of the year camped out in …
2021 was filled with some major wins for individual liberty. As we close the year, we want to celebrate our top 10 victories. #10 Challenging a California law that puts gender preference above equality before the law In June, in a unanimous opinion, the Ninth Circuit held that a shareholder of a California company has …
Massachusetts is one of a dozen states that still practice home equity theft: When a homeowner owes a tax debt, no matter how small, the local government can force a foreclosure and keep the full selling price of the home—leaving the homeowner with nothing. A new Pacific Legal Foundation report, Violating the Spirit of America: …
There is so much to a home that extends beyond its physical walls. A home is a place where families gather to break bread, celebrate holidays, and plant their roots. It is a place where our most cherished memories are made. A home also offers families financial security. The home that shelters is also the …
Co-authored with Michael Fedorchak, the state director for AFP North Dakota. There is cause for celebration in North Dakota, as it joins the growing list of states that forbid home equity theft. Until recently, local North Dakota officials could seize and sell valuable properties when the owners fall behind on property tax payments and then …
If you are late on your property taxes, can the government take more than you owe in taxes, penalties, interest, and costs? PLF filed a petition on behalf of Elliot Feltner, asking the U.S Supreme Court to answer that important question. If granted, the Court could end predatory tax foreclosures that allow the government to take a windfal …
Help us end the practice of home equity theft for good. Your support helps us bring additional legal challenges and legislative solutions to protect the home equity of hardworking Americans.
