A Second Property Tax Sale Decision by the U.S. Supreme Court May Get Counties Off the Hook for Paying Lost Equity to Homeowners

Three years ago the U.S, Supreme Court ruled that allowing people and companies to capture the difference between the amount of delinquent taxes due and the fair market value of the property is unconstitutional.

Illinois was the last state to enact legislation purporting to cope with that decision.

State Legislature Finally Moves to Reform Property Tax Sale Process Three Years after U.S. Supreme Court Decision

In the meantime, suits were filed against counties claiming that they should pony up the difference.

Compensation for Home Value Loss Due to Tax Sales Being Litigated against Illinois Counties

Here are the calculations of how much McHenry County might have been forced to pay:

The Property Tax Sale Problem That Could Cost McHenry County Taxpayers $13 Million

Now comes the U.S. Supreme Court with a supplementary decision ruling that a Michigan County does not have to come up the difference between the delinquent tax amount and the value of the property.

Here is how Epoch Times summarizes the decision:

“The U.S. Supreme Court on June 23 ruled unanimously that a Michigan county does not have to compensate a homeowner whose home was sold for unpaid taxes based on the property’s hypothetical fair market value.”

There is a Federal case aimed at Cook County in which the Judge seems to have ruled contrary to the new U.S. Supreme Court decision, that Cook County taxpayers will have to make up the difference.

In view of the higher court decision, maybe not.