Supreme Court appears split in tax foreclosure case
NPR • • general
Key Points:
- The Supreme Court is considering whether counties must pay homeowners the full fair market value of a residence sold at a tax foreclosure auction, rather than just the auction proceeds minus back taxes owed.
- The case involves the estate of Timothy Pung, whose home was sold for $76,000 to cover about $2,000 in unpaid taxes, while the home’s fair market value was argued to be $194,000.
- Property rights advocates argue delinquent taxpayers deserve fair market value compensation, but some justices expressed skepticism, noting homeowners could have sold the property themselves to maximize value.
- Justices debated the potential consequences of requiring counties to pay full market value, with concerns that it could effectively end tax sales and shift the financial burden
