The Michigan Supreme Court has dealt a blow to county treasurers with a new ruling, finding that counties can’t keep any profits they get from selling tax-foreclosed homes at auction.
The ruling stems from a lawsuit, Rafaeli v. Oakland County, that challenged one part of Michigan’s tax foreclosure law. The current law, which dates back to 1999, allows county treasurers—who collect delinquent property taxes on behalf of local communities—to pocket the whole sale price of auctioned properties, regardless of the amount of delinquent tax debt.