In May, the U.S. Supreme Court struck down a law in Minnesota. The unanimous decision, Tyler v. Hennepin County ruled a tax title practice referred to as “home equity theft” unconstitutional, declaring that tax collectors can only collect what they’re owed and must return any excess profits from a sale to the original homeowner.
The problem with the tax deed procedure is that it fails to provide both procedural and substantive due process to the taxpayer. Procedurally, although adequate notice is given, title to the taxpayer’s real estate is taken by the government without a proper hearing.
Based on an unreviewed decision by a municipal tax collector, the taxpayer immediately loses title to the land. Substantively, by using a tax deed, the municipality engages in the taking of property without providing reasonable compensation to the taxpayer.
The value of the land taken for payment of the tax debt is not evaluated in the context of the debt owed. Empirical evidence shows that the value of taken property significantly exceeds the debt owed, giving the municipality the ability to collect almost $50 for every dollar of delinquent real estate tax owed, on average. Each year, approximately $56 million is unconstitutionally appropriated from taxpayers.
This decision makes it clear that our current law in Massachusetts is unconstitutional.
The FBI defines tax-taking, excuse me I mean “robbery,” as “the taking or attempting to take anything of value from … the control of a person … by force or threat of force.” The definition is intentionally broad, so a number of crimes, such as home equity thefts, could constitute a robbery.
However, the extent to which this type of crime can affect a person is often unexpected and underestimated. Anger, fear, vulnerability, and even physical symptoms, like nausea and headaches, includes some of the reactions to this type of trauma that people may experience after the tax taking process.
Although most people don’t suffer long term from a crime of this sort, occasionally, the emotional distress can leave you feeling symptoms of anxiety, post-traumatic stress disorder, or depression that may persist.
Furthermore, how convenient is it that local officials and state legislators want to blame the federal government for not addressing adequate housing for new arrivals, but will not acknowledge the U.S. Supreme Court’s unanimous ruling as of May 25 that home equity theft is a crime and unconstitutional!
Remember, citizen, that it’s “them” in this moment and it can easily be “you” next. Greenfield, stop home equity theft and return the money and interest that was stolen.
Erika McGee lives in Greenfield.