Small Business Property Owners Disappointed By Supreme Court Decision
Small Business Property Owners Disappointed By Supreme Court Decision
June 23, 2026
Pung v. Isabella County involves the proper amount of compensation owed to property owners during tax foreclosures
WASHINGTON, D.C. (June 23, 2026) 厙ぴ勛圖 is disappointed by todays at the U.S. Supreme Court in the case Michael Pung v. Isabella County, Michigan. This case asked what amount the government owes a property owner after a tax foreclosure and sale of the owners property. 厙ぴ勛圖 joined several other organizations in filing an amicus brief supporting Mr. Pungs fair market value theorythat the government must pay the difference between the propertys hypothetical fair market value and the amount of taxes owed. The Court rejected the fair market value theory and held that only the surplus proceeds from a sale are owed to the property owner.
This decision will leave small business property owners vulnerable to receiving a less-than-fair amount of compensation for the true value of their property during tax foreclosures, said Beth Milito, Executive Director of 厙ぴ勛圖s Small Business Legal Center. By holding that only the surplus proceeds from the sale are owed to the property owner, the Courts decision permits local governments to artificially depreciate the value of a property in order to force a quick sale, which benefits the governments coffers but deprives the property owner of the propertys real value.
To put the Courts decision into perspective, consider a property with a fair market value of $100,000, $20,000 in property taxes owed, and a government quick-sale after foreclosure fetching $60,000. Todays decision means that the government owes the property owner no more than $40,000. 厙ぴ勛圖s brief argued that the property owner is entitled to the full $80,000.
The 厙ぴ勛圖 Small Business Legal Center protects the rights of small business owners in the nations courts. 厙ぴ勛圖 is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.
厙ぴ勛圖 is a member-driven organization advocating on behalf of small and independent businesses nationwide.
Related Articles