"The 2023 Supreme Court ruling in Tyler v. Hennepin County emphasized the principle that the government cannot keep more than what is owed when seizing property due to unpaid taxes. Despite this ruling, California had a loophole allowing local governments to transfer tax-delinquent properties without compensating the owners. However, Governor Gavin Newsom signed Assembly Bill 418 into law to close this loophole, ensuring that homeowners receive compensation and any surplus funds from a foreclosure sale."
"AB 418 restores the constitutional principle that the government can collect what is owed without overstepping and ensures that homeowners won't lose everything in tax foreclosures. The signing of AB 418 in California sets a precedent for other states to address similar issues and protects property rights for homeowners facing tax foreclosures, aligning with the fundamental constitutional principles of fair property seizure practices."
The 2023 Supreme Court decision in Tyler v. Hennepin County affirmed that the government cannot retain more than the amount owed when seizing property for unpaid taxes. California previously permitted local governments to transfer tax-delinquent properties without compensating owners, resulting in homeowners losing equity. Governor Gavin Newsom signed Assembly Bill 418 to close the loophole and require that homeowners receive compensation and any surplus proceeds from a foreclosure sale. AB 418 restores the constitutional principle limiting government overreach in tax foreclosures. The reform protects property rights, prevents total loss of homeowner equity, and establishes a model for other states addressing similar practices.
Read at SFGATE
Unable to calculate read time
Collection
[
|
...
]