The ruling effects Kent County residents who lost property due to unpaid taxes between 2013 and 2020.
The decision arises from a 2014 federal lawsuit where three Van Buren County property owners failed to pay property taxes and lost their property due to tax foreclosure. All properties were then sold at county auction for more than the taxes owed. The property owners then sued for the excess amount.
At that time, county treasurers followed state statute which permitted counties to keep any surplus proceeds, funds which they often used to offset any losses on other seized properties.
In late 2020, the Michigan Supreme Court ruled this statute unconstitutional, leaving counties facing liabilities ranging anywhere from $500,000 to $120 million.
A settlement was eventually reached, overseen by the Mediation Office of the U.S. Court of Appeals for the Sixth Circuit.
Kent County Treasurer Peter MacGregor said that the settlement resolves significant pending litigation in Kent County while providing an avenue for taxpayers to reclaim their surplus proceeds.
To obtain the benefit of the settlement, former property owners had to file claims during the spring and summer of 2023.
You can visit the Kent County Treasurer’s website to learn more.
