Supremes make it harder for states to seize and sell homes for back taxes

http://www.chron.com/disp/story.mpl/nation/3821110.html

April 26, 2006, 5:12PM
Ruling curbs sales of homes for unpaid taxes

By TONI LOCY
Associated Press

WASHINGTON — The Supreme Court ruled today that states must work harder to make sure to tell homeowners before their houses are sold for back taxes.

By a 5-3 vote, justices reversed an Arkansas Supreme Court's decision in the case of Gary Jones, a Little Rock man whose home was sold by the state because of delinquent taxes.

Chief Justice John Roberts, writing for the majority, said Arkansas officials should have done more when certified letters mailed to Jones' home were returned as unclaimed and when he failed to respond to a newspaper ad announcing the sale.

Roberts said many states require authorities to post notices on the doors of the homes up for sale or to send letters via regular mail that don't require signatures and can be left at the address.

States do not spare efforts to collect taxes, Roberts wrote. So, he said, they also should not spare efforts to track down owners of homes about to be sold off to pay delinquent taxes.

Roberts said states must take "additional reasonable" steps to provide notice. But he declined to define what those steps should be.

"In this case, the state is exerting extraordinary power — taking and selling a house," the chief justice wrote. "It is not too much to insist that the state do a bit more to attempt to let (a homeowner) know about it when the notice letter addressed to him is returned unclaimed."

In the dissent, Justice Clarence Thomas said Arkansas officials had done more than enough to try to locate Jones, who was legally obligated to make sure tax authorities had his correct address on file.

"The state cannot be charged to correct a problem of (Jones') own creation and of which it was not aware," wrote Thomas, who was joined by Justices Antonin Scalia and Anthony M. Kennedy.

Justice Samuel Alito did not participate in the decision because he was not yet a member of the court when the case was argued.

The case is Jones v. Flowers, 04-1477.

http://www.localnewsleader.com/olberlin/stories/index.php?action=fullnews&id=181735

States Must Give Notice for Home Sales
Staff and agencies
26 April, 2006

By TONI LOCY, 14 minutes ago

WASHINGTON - The Supreme Court ruled Wednesday that states must work harder to make sure to tell homeowners before their houses are sold for back taxes.

Chief Justice John Roberts, writing for the majority, said Arkansas officials should have done more when certified letters mailed to Jones‘ home were returned as unclaimed and when he failed to respond to a newspaper ad announcing the sale.

States do not spare efforts to collect taxes, Roberts wrote. So, he said, they also should not spare efforts to track down owners of homes about to be sold off to pay delinquent taxes.

"In this case, the state is exerting extraordinary power — taking and selling a house," the chief justice wrote. "It is not too much to insist that the state do a bit more to attempt to let (a homeowner) know about it when the notice letter addressed to him is returned unclaimed."

In the dissent, Justice Clarence Thomas said Arkansas officials had done more than enough to try to locate Jones, who was legally obligated to make sure tax authorities had his correct address on file.

"The state cannot be charged to correct a problem of (Jones‘) own creation and of which it was not aware," wrote Thomas, who was joined by Justices Antonin Scalia and Anthony M. Kennedy.

Justice Samuel Alito did not participate in the decision because he was not yet a member of the court when the case was argued.

Supreme Court: http://www.supremecourtus.gov