Minnesota Reaches $109M Settlement Over Property Tax Forfeiture – Are You Eligible?

Minnesota Reaches $109M Settlement Over Property Tax Forfeiture – Are You Eligible?

Minnesota has agreed to a $109 million settlement to resolve claims that the state failed to compensate property owners for surplus value when their properties were forfeited due to unpaid property taxes. The settlement provides significant relief to individuals affected by property forfeitures over the past decade.

Who Benefits from the Settlement?

The settlement covers property owners, lienholders, and individuals with a valid security interest in forfeited properties across Minnesota. Eligible properties include:

  • Hennepin County: Properties forfeited between August 16, 2012 – December 31, 2023
  • St. Louis County: Properties forfeited between June 2, 2016 – December 31, 2023
  • All Other Minnesota Counties: Properties forfeited between June 23, 2016 – December 31, 2023

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What Led to the Settlement?

The class action lawsuit alleged that Minnesota violated property owners’ rights by failing to return surplus value when properties were seized for unpaid taxes. This resulted in financial losses for many homeowners who lost valuable equity when their properties were forfeited.

While Minnesota has not admitted any wrongdoing, the state has agreed to the $109 million settlement to resolve these claims.

How Will Compensation Be Calculated?

Class members eligible for compensation will receive:

  • Up to 90% of the surplus value of the forfeited property, plus interest from the date of forfeiture.
  • Value assessment methods: Settlement amounts will be based on the property’s sale price, the county assessor’s estimated market value, or an independent appraisal.
  • Multiple claims on a property: If multiple claims are made on a single property, funds will be distributed based on Minnesota’s legal priority order.
  • Severed Mineral Rights Holders: Owners of severed mineral rights will receive $300 per parcel plus interest.
  • Lienholders: Payments will be made up to the lien amount at the time of forfeiture, including interest.

Payments may be reduced on a pro-rata basis depending on the total number of claims filed.

Important Deadlines & How to File a Claim

If you believe you are eligible for compensation, here’s what you need to know:

  • Claim Form Submission Deadline: June 6, 2025
  • Final Approval Hearing: December 16, 2024
  • Required Documentation: Proof of ownership, lien documents, property tax statements, assessment notices, mortgage records, trust documents, or other valid property-related documents.
  • Settlement Website & Claims Submission: MNTaxForfeitureSettlement.com
  • Claims Administrator Contact:
    • Tyler v. Hennepin County
    • c/o Kroll Settlement Administration LLC
    • P.O. Box 5324, New York, NY 10150-5324
    • Phone: 833-522-3374

The class action lawsuit was led by the following law firms:

  • Guin Stokes & Evans LLC – Charles R. Watkins, David Guin
  • Teske Law PLLC – Vildan A. Teske
  • Reinhardt Wendorf & Blanchfield – Garrett Blanchfield, Roberta A. Yard

What’s Next?

Minnesota property owners affected by tax forfeitures should review their eligibility and submit claims before the deadline. The settlement represents a significant step in ensuring fair compensation for individuals who lost valuable property equity due to the state’s forfeiture policies.

If you believe you qualify, act now to secure your rightful compensation under this historic agreement.

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