From a Strib January editorial
Tyler's case was dismissed in federal district court, and an appellate court upheld that ruling, affirming that Minnesota could legally redefine Tyler's private home as public property, allowing the government to keep the excess value.
Pacific Legal Foundation, a conservative nonprofit that specializes in "individual and economic liberty," is representing Tyler pro bono.
At the time of that decision, Christina Martin, senior attorney at Pacific Legal Foundation, commented, "We believe that Hennepin County violated Ms. Tyler's rights by taking a huge windfall at her expense." The foundation noted in its 2022 report that 12 states and Washington, D.C., allow local governments to take more than the amount they are owed in back taxes. Based on a review of property tax records, Pacific Legal contends that from 2014 to 2020, an estimated 1,200 Minnesotans lost their homes and all equity for debts that averaged 8% of the homes' value.
(snip)
The effort by counties to collect delinquent taxes can be prolonged. Dan Rogan, assistant county administrator for resident services, responded to a Star Tribune reporter's questions in a recent email, nothing that "when a property owner fails to pay taxes and does not avail herself of the numerous ways to remedy the deficiency including selling the property, using the sales proceeds to pay the tax and keeping any surplus the state's retention of the surplus is not an unconstitutional taking nor is it an excessive fine." Rogan in other statements to media noted that property owners are given three years to resolve unpaid taxes.
The county's practice may well be constitutional. That will be for the Supreme Court to decide. But there is another question here. Is it right? Is it fair dealing with someone so hard up that they can't pay taxes to take all the equity in their home, far in excess of what they owed?
https://www.startribune.com/heartless-state-law-headed-to-high-court/600246525/