A Nebraska man has regained ownership of his home years after losing it due to a $588 tax debt, one of his attorneys said Thursday.
Kevin Fair of Scottsbluff has been involved in a legal dispute since 2018, when he lost ownership of a home he had owned for nearly 30 years after failing to pay $588 in delinquent property taxes. Scotts Bluff County sold the liens to private investors, as allowed under Nebraska law at the time.
When Fair was unable to repay the money, along with interest and fees, ownership reverted to the investors, but Fair was able to stay in the home while the legal battle played out.
The Nebraska Supreme Court ruled against Fair in 2022, but a year later the U.S. Supreme Court ordered the state court to reconsider. Last August, the Nebraska Supreme Court ruled that Fair must retain ownership of the home.
Fair’s appellate law firm, Pacific Legal Foundation, said Fair and the investor resolved the dispute amicably, ending the legal battle.
Christina Martin, senior attorney at the Pacific Legal Foundation, said the case confirms that home equity “is protected by the Constitution.” For Fair, the ruling “is probably protecting him from homelessness,” she said.
A message seeking comment was left Thursday with Scotts Bluff County’s attorney.
Fair and his wife, Terry, had already paid off the mortgage on their home in Scottsbluff, a town of 14,300 in far western Nebraska, by the early 2010s. But in 2013, Terri was diagnosed with multiple sclerosis and Kevin quit his job to care for her. The couple owed $588 in property taxes.
The county placed a lien on the home and reported the delinquency in the newspaper. In 2015, the county sold the tax lien to a private investor, who paid the home taxes for three years.
The investor demanded the fair pay $5,268 in taxes, interest and fees, which they were unable to pay. Scotts Bluff County transferred ownership and stake to investors in 2018.
Kevin Fair’s lawsuit argued that the state should be able to collect debts but should not be allowed to seize homes or assets exceeding the amount owed, in this case $54,000.
The court victory is bittersweet for Kevin Fair. His wife died in 2019 and he suffered a stroke last month. Martin said a ramp had to be built in the house to accommodate him. The GoFundMe account had raised nearly $10,000 as of Thursday afternoon.
Nebraska changed its law in 2023 so that homeowners would no longer be at risk of losing equity for unpaid property taxes.
