Idaho Governor Brad Little has taken a strong stand for property rights by signing a bill into law that puts an end to home equity theft. The legislation, known as House Bill 444, was unanimously approved by the Idaho legislature and aims to protect homeowners from having their properties repossessed by local governments without fair compensation.
Under the previous law, county governments in Idaho were able to transfer repossessed properties to other agencies and avoid compensating the original homeowners. This created a loophole that allowed the government to collect outstanding tax debts on the property without providing any form of compensation to the homeowner, even if the sale value of the property exceeded the tax debt owed.
However, with the signing of House Bill 444, the government will now be required to sell the repossessed property and fairly split the sale value with the homeowner. This ensures that homeowners are not unfairly stripped of their properties and are rightfully compensated for their losses.
Idaho is now the fourth state, alongside Nebraska, Maine, and South Dakota, to put an end to home equity theft. This move comes after the Supreme Court ruled in May 2023 that home equity theft was unconstitutional in its Tyler vs. Hennepin County case. The court unanimously ruled in favor of Geraldine Tyler, a Minnesota resident who lost $24,000 when her condo was sold by the state for more than double the amount she owed in taxes.
Home equity theft has been a widespread issue, with nine states and Washington, D.C., having laws in place to address it. However, there are still nine other states that allow the practice under certain circumstances, despite the Supreme Court’s ruling.
State Representative Jeff Ehlers, one of the sponsors of House Bill 444, expressed his concerns about government overreach and the reliance on property seizures as a source of revenue. He highlighted the unfairness faced by taxpayers and property owners and emphasized that the new law would bring much-needed fairness to the state of Idaho.
The signing of House Bill 444 is a significant step in protecting property rights and ensuring that homeowners are not unjustly stripped of their homes. By closing the home equity theft loophole, Idaho has set an example for other states to follow in safeguarding the rights of their citizens. This move demonstrates the commitment of conservative lawmakers to preserving individual liberties and holding the government accountable for its actions.
