When property taxes go unpaid long enough, the county or a tax buyer can take title and sell the property. If it sells for more than the taxes, interest, penalties and costs owed, the extra is called a tax sale overage or excess proceeds.
What Tyler v. Hennepin County decided
In Tyler v. Hennepin County (2023), the U.S. Supreme Court unanimously held that a county could not keep the surplus value of a home sold for about $15,000 in tax debt without giving the owner a way to recover the excess. Keeping it, the Court said, can be an unconstitutional taking under the Fifth Amendment.
What changed afterwards
- States that previously let governments keep the entire sale price began changing their laws to create claim procedures for former owners.
- Class actions and settlements followed in several states for owners who lost equity before the ruling, often with their own claim deadlines.
- Rules now differ widely: who holds the money, how long you have to claim, and whether the claim goes through the county, a court or the state.
How to find out if you're owed excess proceeds
- Identify the county and approximate year of the tax sale or tax deed.
- Check the county treasurer, tax collector or clerk website for an "excess proceeds" or "overage" list.
- Ask whether your state created a post-Tyler claim process or settlement fund and what its deadline is.
- Gather proof of ownership at the time of the sale (deed, tax bills) and your ID.
Heirs can claim too
If the owner has died, heirs or the estate may be entitled to the overage. Expect to provide a death certificate and proof of heirship or probate letters.
Laws in this area changed quickly after 2023, so confirm the current rule for your state and county before relying on any deadline. Ask us for a free review →
