{"id":501939,"date":"2022-10-17T17:31:23","date_gmt":"2022-10-17T17:31:23","guid":{"rendered":"https:\/\/resolveyourtaxes.com\/?p=501939"},"modified":"2022-10-17T17:37:08","modified_gmt":"2022-10-17T17:37:08","slug":"10-17-22-sixth-circuit-rules-government-cannot-seize-300000-in-home-equity-to-pay-22000-tax-debt","status":"publish","type":"post","link":"https:\/\/resolveyourtaxes.com\/?p=501939","title":{"rendered":"10\/17\/22 Sixth Circuit Rules Government Cannot Seize $300,000 in Home Equity to Pay $22,000 Tax Debt"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"501939\" class=\"elementor elementor-501939\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-106fbb53 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"106fbb53\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-21d25fcf\" data-id=\"21d25fcf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-8f08b85 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8f08b85\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-69aa65f5\" data-id=\"69aa65f5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5a4c48b7 elementor-widget elementor-widget-heading\" data-id=\"5a4c48b7\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">10\/17\/22 Sixth Circuit Rules Government Cannot Seize $300,000 in Home Equity to Pay $22,000 Tax Debt<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bd03f2a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bd03f2a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-91e2fbc\" data-id=\"91e2fbc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cf250a7 elementor-toc--minimized-on-tablet elementor-widget elementor-widget-global elementor-global-705 elementor-widget-table-of-contents\" data-id=\"cf250a7\" data-element_type=\"widget\" data-settings=\"{&quot;exclude_headings_by_selector&quot;:&quot;h1&quot;,&quot;headings_by_tags&quot;:[&quot;h2&quot;,&quot;h3&quot;,&quot;h4&quot;,&quot;h5&quot;,&quot;h6&quot;],&quot;marker_view&quot;:&quot;numbers&quot;,&quot;minimize_box&quot;:&quot;yes&quot;,&quot;minimized_on&quot;:&quot;tablet&quot;,&quot;hierarchical_view&quot;:&quot;yes&quot;,&quot;min_height&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"table-of-contents.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-toc__header\">\n\t\t\t<h4 class=\"elementor-toc__header-title\">\n\t\t\t\t10\/17\/22 Sixth Circuit Rules Government Cannot Seize $300,000 in Home Equity to Pay $22,000 Tax Debt: Contents\t\t\t<\/h4>\n\t\t\t\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--expand\"><i class=\"fas fa-chevron-down\"><\/i><\/div>\n\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--collapse\"><i class=\"fas fa-chevron-up\"><\/i><\/div>\n\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-toc__body\">\n\t\t\t<div class=\"elementor-toc__spinner-container\">\n\t\t\t\t<i class=\"elementor-toc__spinner eicon-animation-spin eicon-loading\" aria-hidden=\"true\"><\/i>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ff86960 elementor-widget elementor-widget-heading\" data-id=\"ff86960\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Sixth Circuit Rules Government Cannot Seize $300,000 in Home Equity to Pay $22,000 Tax Debt<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cfd42e4 elementor-widget elementor-widget-text-editor\" data-id=\"cfd42e4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The US Court of Appeals for the Sixth Circuit recently ruled,\u00a0 in <a href=\"https:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/22a0226p-06.pdf\"><em>Hall v. Meisner<\/em><\/a>, that the government cannot seize $300,000 in home equity to pay off a $22,000 property tax delinquency. Such &#8220;home equity theft&#8221; qualifies as a taking and therefore requires payment of &#8220;just compensation&#8221; under the Takings Clause of the Fifth Amendment.<\/p><p>The ruling was written by prominent conservative Judge Raymond Kethledge, who is sometimes considered a potential Republican Supreme Court nominee.\u00a0 <\/p><p>In some key ways, this ruling follows the reasoning of\u00a0<a href=\"https:\/\/nam11.safelinks.protection.outlook.com\/?url=https%3A%2F%2Fpacificlegal.org%2Fwp-content%2Fuploads%2F2020%2F07%2Frafaeli-v-oakland-county-opinion.pdf&amp;data=05%7C01%7Cisomin%40gmu.edu%7Cde08749da2054481dd8908da9db1b5a5%7C9e857255df574c47a0c00546460380cb%7C0%7C0%7C637995685489246693%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&amp;sdata=KnnQDCF97X1o7lsywfX%2Bu5th76AvAaQa8U%2F4Q1go7uU%3D&amp;reserved=0\"><em>Rafaeli, LLC v. Oakland County<\/em><\/a>, a\u00a0<a href=\"https:\/\/reason.com\/volokh\/2020\/07\/17\/michigan-supreme-court-rules-government-cant-seize-entire-value-of-property-over-property-tax-delinquency-worth-8-41\/\">2020 decision by the Michigan Supreme Court<\/a>, which reached a similar conclusion under the Michigan state constitution in a case with facts even more egregious than those of\u00a0<em>Hall\u00a0<\/em>(Oakland County, Michigan had seized the entire value of a $24,500 home in order to pay off a mere $8.41 tax delinquency).<\/p><p>There are two notable differences between the two cases. First, the Sixth Circuit decided the case under the Takings Clause of Fifth Amendment of the federal constitution, not merely a state constitution. Second, the Sixth Circuit makes clear that states cannot avoid takings liability by passing a law redefining &#8220;long-established&#8221; property interests. The government had argued that this latter consideration differentiated<em>\u00a0Hall<\/em> from the state supreme court case.<\/p><p>Judge Kethledge goes on to explain that longstanding principles of the Anglo-American legal tradition hold that foreclosure does not entitle the government to appropriate the entire home equity held by the owners, as opposed to merely the amount needed to pay off the tax delinquency or other obligation at issue.<\/p><p>Click here to read the article:\u00a0 <a href=\"https:\/\/reason.com\/volokh\/2022\/10\/15\/sixth-circuit-rules-government-cannot-seize-300000-in-home-equity-to-pay-22000-in-tax-debt\/\">Sixth Circuit Rules Government Cannot Seize $300,000 in Home Equity to Pay $22,000 Tax Debt (reason.com)<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-ed0c9c6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ed0c9c6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-f4e7ed0\" data-id=\"f4e7ed0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The US Court of Appeals for the Sixth Circuit recently ruled, in Hall v. Meisner, that the government cannot seize $300,000 in home equity to pay off a $22,000 property tax delinquency. Such &#8220;home equity theft&#8221; qualifies as a taking and therefore requires payment of &#8220;just compensation&#8221; under the Takings Clause of the Fifth Amendment.<\/p>\n","protected":false},"author":1004,"featured_media":501944,"comment_status":"closed","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-501939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/posts\/501939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/users\/1004"}],"replies":[{"embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=501939"}],"version-history":[{"count":5,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/posts\/501939\/revisions"}],"predecessor-version":[{"id":501945,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/posts\/501939\/revisions\/501945"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/media\/501944"}],"wp:attachment":[{"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=501939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=501939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=501939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}