NewsLocal NewsMichigan


Michigan Supreme Court rules local governments can't keep extra cash in tax foreclosures

Posted at 3:44 PM, Jul 17, 2020
and last updated 2020-07-17 15:44:45-04

LANSING, Mich. (AP) — The Michigan Supreme Court says local governments can't keep surplus cash from the sale of tax-foreclosed properties.

It's a groundbreaking decision that could lead to waves of payments to former owners.

State law allowed county treasurers to keep money left over after overdue taxes finally are paid from a property sale.

The Supreme Court said the practice is illegal under the Michigan Constitution.

The case centered on two sales in Oakland County. In one deal, a man's land was sold for $82,000. He owed $6,000 in back taxes but wasn't given the $76,000 surplus.