Supreme Court Overrules Local Governments for Seizing Homes

The Supreme Court held a special sitting on Sept. 30, 2022, for the formal investiture ceremony of Associate Justice Ketanji Brown Jackson. Collection of the Supreme Court of the United States/Getty Images

The U.S. Supreme Court reversed court rulings in which local governments seized two homes over unpaid tax debts and kept sale proceeds that far exceeded the tax owed.

Critics call the practice “home equity theft.”