Lawsuit demands Wisconsin counties refund surplus funds from tax foreclosures since 1975

During the recent Administrative & Finance Committee Meeting held on March 8, 2025, in Adams County, Wisconsin, significant discussions emerged regarding a class action lawsuit that could have far-reaching implications for local governments across the state. The meeting highlighted the ongoing legal challenges faced by all 72 counties in Wisconsin, stemming from a Supreme Court ruling related to tax foreclosures.

The lawsuit in question arises from the case of Hennepin Tyler versus Hennepin County, which determined that retaining surplus funds from in rem tax foreclosures constituted an unconstitutional taking. This ruling has prompted a class action lawsuit demanding that all counties, including Milwaukee, return surplus funds collected from 1975 to the present. The potential financial impact of this lawsuit could be substantial, as it seeks restitution for funds that counties may have relied upon for various services and programs.

In addition to the lawsuit, the committee addressed the recent primary elections, with Supervisor Pease reporting no significant issues. This positive feedback reflects the county's ongoing efforts to ensure smooth electoral processes, which are crucial for maintaining public trust in local governance.

As the committee navigates these pressing issues, the implications of the class action lawsuit will likely dominate discussions in future meetings. The outcome could reshape financial practices related to tax foreclosures and impact the fiscal health of counties across Wisconsin. The committee's proactive approach in addressing these matters underscores the importance of transparency and accountability in local government operations.