The U.S. Supreme Court reversed court rulings in which local governments seized two homes over unpaid tax debts and kept sale proceeds that far exceeded the tax owed.
The U.S. Supreme Court released unsigned orders on June 5 summarily reversing two rulings of the Supreme Court of Nebraska.
The judgments of the Supreme Court of Nebraska were vacated and the cases remanded to that court "For further consideration in light" of the U.S. Supreme Court's unanimous ruling in Tyler v. Hennepin County on May 25.
The county went too far in keeping the windfall, the U.S. Supreme Court held.
Supreme Court precedents have long recognized that a taxpayer is entitled to the surplus in excess of the debt owed, the court stated at the time.
Nieveen's appeal to the Supreme Court of Nebraska was dismissed in May 2022.
"The Supreme Court ruled in Tyler that when the government takes a person's home equity to satisfy a property tax debt, it violates the Constitution's Takings Clause. In light of that decision, it's clear that the Nebraska tax sale process is unconstitutional."
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