U.S. Supreme Court Upholds County's Right to Retain Property Tax Foreclosure Surplus, Rejects Broader Compensation Claims
The U.S. Supreme Court has unanimously ruled against a Michigan couple, the Pungs, who argued they were entitled to the full assessed value of their foreclosed home, rather than the surplus from the auction sale, after failing to pay a $2,241.93 property tax bill. The Pungs' home, assessed at $194,000, was auctioned for $76,000, with the county returning a surplus of $73,766 after deducting the unpaid taxes. The couple contended that the county's actions violated the Fourteenth Amendment's due process clause and the Fifth Amendment's Takings Clause, asserting they should have received compensation based on the home's fair market value. However, the Court, in an opinion written by Associate Justice Alito, dismissed their arguments, distinguishing property tax foreclosures from eminent domain cases and emphasizing the practical concerns of local governments in collecting unpaid taxes. Justices Clarence Thomas and Neil Gorsuch concurred with the main ruling but raised concerns about the neglect of historical ...
