As I said before, property taxes are the most evil.
“You have a situation where a person owed $8 and lost their house. I mean, how is that equitable?” asked Michigan Supreme Court Justice Richard Bernstein.
Arguing before the Michigan Supreme Court, attorneys for the county that pocketed nearly $25,000 from forfeiting Uri Rafaeli’s property over a $8.41 tax debt argued that it’s not really about the property—it’s about the money.
That telling moment came in the midst of a back-and-forth between Justice Richard Bernstein and John Bursch, the attorney representing Oakland County. In trying to defend the county’s right to seize the full value of Rafaeli’s property over a minuscule debt, Bursch had argued that it was impossible for local governments to compensate all homeowners who had been caught in similar circumstances. The price tag, he estimated, would be more than $2 billion statewide.
Rafaeli’s situation is awful but hardly unique: Under the terms of a state law passed in 1999, county treasurers in Michigan are allowed to seize properties with unpaid taxes, settle the debt, and keep the remainder for their own budgets. The Pacific Legal Foundation, a nonprofit law firm, is challenging that law, arguing it violates provisions in both the Michigan and U.S. Constitutions.
“A ruling for the plaintiffs will ruin local governments,” warned Bursch. “That will come right out of schools, roads, firefighters, and other basic services.”
“It’s for the kids!!!”
Bernstein wasn’t buying it.
“The interpretation you gave was very dramatic: that this is going to end schools, and the counties are going to crumble, and society is just going to implode,” said Bernstein, interrupting Bursch.“You have a situation where a person owed $8 and lost their house. I mean, how is that equitable?”
“It may sound unfair on its face,” Bursch replied. “But it’s also unfair to force those who pay their taxes to subsidize those who don’t.”
Bernstein was still skeptical. “It was $8,” he said. “Couldn’t it be a mistake?”
“The counties don’t want the property,” argued Bursch. “They want the money.” Bingo.
County Says Seizing Home Over $8.41 Tax Debt Was OK Because Counties Need Money
Property Rights Arguing before the Michigan Supreme Court, attorneys for the county that pocketed nearly $25,000 from forfeiting Uri Rafaeli’s property over a $8.41 tax debt argued that it’s not really about the property-it’s about the money. That telling moment came in the midst of a back-and-forth between Justice Richard Bernstein and John Bursch, the attorney representing Oakland County.