$109M Minnesota property tax forfeiture class action settlement

Minnesota has agreed to a $109 million settlement to resolve claims that it failed to compensate property owners for surplus value when their properties were forfeited for nonpayment of property taxes.

The Minnesota property tax settlement benefits anyone who held any ownership interest, lien or other security interest in a property that was forfeited to the state of Minnesota in the last several years for nonpayment of property taxes and for which there was surplus value.

The settlement covers properties in Hennepin County that were forfeited between Aug. 16, 2012, and Dec. 31, 2023; properties in St. Louis County that were forfeited between June 2, 2016, and Dec. 31, 2023; and properties in all other Minnesota counties that were forfeited between June 23, 2016, and Dec. 31, 2023.

The Minnesota forfeiture class action lawsuit claimed the state failed to compensate property owners for surplus value that existed when their properties were forfeited for nonpayment of property taxes. This allegedly caused financial damages to Minnesota homeowners.

In Minnesota, property taxes are generally administered at the county level. However, the Minnesota Department of Revenue may provide resources and administration on a state level.

The state of Minnesota hasn’t admitted any wrongdoing but agreed to pay $109 million to resolve these allegations.

Under the terms of the Minnesota property tax settlement, class members can receive up to 90% of the surplus value of their forfeited property, plus interest starting from the date of forfeiture. A property’s value at the time of forfeiture can be determined with a property’s sale price, the assessor’s estimated market value or an appraisal.

If multiple claims are made for an eligible property, the surplus value will be allocated among the claimants based upon their order of priority under Minnesota law.

Those who owned severed mineral rights for a property will receive $300 per parcel plus interest, while former lienholders will receive a settlement payment up to the amount of the lien value as of the date of forfeiture plus interest.

All settlement payments may be reduced on a pro rata basis depending on the number of claims filed.

The deadline to opt out of or object to the settlement was Nov. 8, 2024.

The final approval hearing for the Minnesota forfeiture settlement was scheduled for Dec. 16, 2024.

In order to receive a settlement payment, class members must submit a valid claim form by June 6, 2025.

Who’s Eligible

The settlement benefits those who held any ownership interest, including a valid lien or other security interest, in a parcel of real property or severed mineral rights that was forfeited to the state of Minnesota for nonpayment of property taxes during the following time periods:

• Minnesota properties in all other counties forfeited between June 23, 2016, and Dec. 31, 2023
• Hennepin County properties forfeited between Aug. 16, 2012, and Dec. 31, 2023
• St. Louis County properties forfeited between June 2, 2016, and Dec. 31, 2023

Potential Award

Varies

Proof of Purchase

Deeds, mortgages, property tax statements, notices of assessment, trust documents, lien documents, etc.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

06/06/2025

Case Name

Tyler, et al. v. Hennepin County, et al., Case No. 62-CV-19-6012, in the Second Judicial District Court for Ramsey County, Minnesota

Final Hearing

12/16/2024

Settlement Website

MNTaxForfeitureSettlement.com

Claims Administrator

Tyler v. Hennepin County
c/o Kroll Settlement Administration LLC
P.O. Box 5324
New York, NY 10150-5324
833-522-3374

Class Counsel

Charles R Watkins
David Guin
GUIN STOKES & EVANS LLC

Vildan A Teske
TESKE LAW PLLC

Garrett Blanchfield
Roberta A Yard
REINHARDT WENDORF & BLANCHFIELD

Defense Counsel

Liz Kramer
SOLICITOR GENERAL

Peter J Farrell
DEPUTY SOLICITOR GENERAL