KENT COUNTY, Mich. — Kent County is set to pay surplus proceeds from auctions to the former owners of homes forfeited to the county due to unpaid property taxes.
The announcement from the county comes after the approval of a settlement stemming from a federal lawsuit filed in Van Buren County in 2014.
In the lawsuit, three former property owners—who had their properties taken due to unpaid taxes—sued the county after their properties were sold in auction for more than what they owed in back property taxes. The ruling required the county to pay back these individuals the excess amount earned in the sales.
However, the ruling couldn't take effect right away due to a state statue that allowed counties to keep these extra funds.
Fast forward to 2020 and a Michigan Supreme Court declared that state statue unconstitutional, leaving the counties on the hook to pay back these excess funds to the former property owners.
The Mediation Office of the U.S. Court of Appeals for the Sixth Circuit oversaw lengthy negotiations that resulted in the recently-approved settlement.
“The assistance of the Sixth Circuit Mediation Office was essential to reaching this settlement,” said Kent County Corporate Counsel Linda Howell. “We’re very pleased to have reached this resolution.”
Individuals in Kent County who had their property taken due to unpaid property taxes between 2013 and 2020 were eligible to file their claims last year.
“This settlement resolves significant pending litigation in Kent County while providing an avenue for taxpayers to reclaim their surplus proceeds,” said Kent County Treasurer Peter MacGregor. “We’re thankful for the court’s decision, which helps bring this issue closer to complete resolution.”
You can learn more about the delinquent property tax timeline and process for the county here.