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Berrien County treasurer: appellate ruling favors counties but 6th Circuit will review takings issue
Summary
Treasurer Shelly Weick told the board a recent decision rejected claims that excess proceeds from tax-foreclosure sales must be paid at fair-market value, a win for counties, but she warned the case has been remanded on a takings-clause question to the 6th Circuit and the county must ensure sales follow statute and notice procedures.
Treasurer Shelly Weick told members of the Berrien County Board that a recent appellate decision rejecting a fair-market-value requirement for excess proceeds in tax-foreclosure sales was “in favor of the counties, the treasurers, and such.”
Weick said the court concluded the relevant takings-clause price is the amount obtained at a properly conducted tax sale, but the opinion remanded the matter to the 6th Circuit Court of Appeals to consider whether the earlier case (identified in committee remarks as the Pung/Peng matter) had been preserved and whether that sale had been properly conducted.
Why it matters: Counties that run tax-foreclosure sales could avoid liability for paying excess proceeds at full fair-market value if sales are held in compliance with Michigan property tax law. Weick said that while the decision is “positive for us currently,” it leaves an open question about notice and procedural adequacy that the appeals court must resolve.
The treasurer urged local officials to review procedures and documentation for foreclosure sales, saying, “If our sales are properly conducted, we follow the general property tax law,” and that county staff will monitor the forthcoming appellate proceedings and report back on next steps.
Board members asked whether Isabella County, the jurisdiction at issue in the referenced case, had followed the correct procedures. Weick replied that, based on the materials she had reviewed, the county appeared to have acted “procedurally correct,” but cautioned the 6th Circuit could still examine adequacy of notice or other procedural issues.
What’s next: The treasurer said the matter is now with the 6th Circuit and the county will await that court’s guidance. Officials stressed the importance of maintaining clear records and following statutory notice and sale procedures while the appellate process continues.
