MARSHALL — A group of Minnesota attorneys say former homeowners who had their property seized for non-payment of property taxes could have a chance to claim money.

After the case of a Minnesota woman whose home was sold for more than she owed in taxes made it to the U.S. Supreme Court in 2023, a Minnesota judge approved a $109 million class-action settlement. Former homeowners in Greater Minnesota could be eligible for a settlement payment if their property was forfeited between June 23, 2016 and Dec. 31, 2023.

“We’re very pleased with the settlement, and we’re hoping as many class members as possible will put in claims,” said attorney Vildan Teske, one of the attorneys representing plaintiffs in the class-action lawsuit.

In a 2023 decision, the Supreme Court ruled that Hennepin County violated a Minneapolis woman’s constitutional rights when it sold her condo for $25,000 more than what she owed in property taxes, and then kept the difference.

The ruling, and the class-action settlement, could make a big difference for a lot of people, Teske said. Under a new state law, county auditors will also be required to notify former homeowners if there is a surplus from the sale of tax-forfeited property.

Teske said the deadline for former homeowners to submit a claim form for the class-action settelement is June 6.

Lyon County hasn’t had any litigation related to tax-forfeited properties, said Lyon County Auditor/Treasurer Aurora Heard. But the county has sold a total of 33 tax-forfeited properties over the past 10 years.

The total delinquent taxes, penalties, interest and costs owed on those properties were $122,320, Heard said. Total sales proceeds for the properties came to $98,100. However, the total sales proceeds on the forfeited properties aren’t the same thing as the “presumptive surplus” the Supreme Court case deals with, she said.

The presumptive surplus for Lyon County properties that forfeited between June 23, 2016, and Dec. 31, 2023, came to $438,625.50, Heard said. The total presumptive surplus included both properties that had been sold and those that were in inventory during that time period.

The presumptive surplus for properties in inventory is the property’s estimated market value minus the total amount owed at the time of forfeiture, Heard said. The presumptive surplus on properties that have been sold is calculated in different ways, depending on the ratio of the property’s sale price to its estimated market value.

Heard said Lyon County currently has a total of 24 tax-forfeited properties for public sale. Of those two dozen properties, 16 are located within the city of Tracy. The inventory also includes one property in Lynd, four in Balaton, a bare lot in Eidsvold Township, a bare lot in Florence, and a bare lot in Marshall.

Heard said Lyon County has to follow a specific sales process for properties forfeited between June 23, 2016, and Dec. 31, 2023. The county has to conduct an auction for the property, with the sale for no less than the property’s appraised value. Depending on when the property is sold, the county would need to give a percentage of the sale proceeds back to Minnesota Management and Budget (MMB). If the property is sold before June 30, 2027, they would give 75% of the proceeds to MMB, and if the property is sold before June 30, 2029, 85% of the proceeds would go to MMB.

Heard said there are three properties in Lyon County that forfeited under the new Minnesota law on sales of tax-forfeited land.

Minnesotans who owned property that was forfeited for non-payment of property taxes between June 23, 2016, and Dec. 31, 2023, can learn more about filing a claim for the class-action settlement at https://mntaxforfeituresettlement.com.

Members of the class-action lawsuit could be eligible to receive up to 90% of the surplus value of their forfeited property, plus interest, said attorney Garrett Blanchfield.

“There is no cost for people to file one of these claims,” he said. People can register and submit a claim form online, or download a paper claim form. Claim forms must be submitted by June 6, 2025, Blanchfield and Teske said.