Tompkins County cancels foreclosed property auction after ruling says they can’t keep the profits

Tompkins County had planned a real property tax foreclosure auction for Monday evening, but has “indefinitely postponed” it in the wake of a U.S. Supreme Court decision late last month that ruled municipalities auctioning off private property to recover unpaid taxes can’t keep the profits from such sales.

The auction was slated to sell residences at 1464 Seventy Six Rd in the Town of Caroline, 4085 Waterburg Rd in the Town of Ulysses, and 315 Titus Ave S in the City of Ithaca; and vacant land or building lots at 626 Blackman Hill Rd in the Town of Caroline, 28 Leisure Ln in the Town of Dryden, Agard Rd in the Town of Ulysses, and Adams Rd in the Town of Newfield.

“In the unanimous ruling, the court sided with Geraldine Tyler, 94, a Minneapolis resident whose condo was seized by Hennepin County in 2015 over $2,300 in unpaid property taxes and $12,700 in penalties and interest,” Investopedia said of the case. “While tax lien foreclosures are well-established law, the controversial part was what happened next: the county sold her house at an auction for $40,000 and kept the difference.”

“The principle that a government may not take from a taxpayer more than she owes is rooted in English law and can trace its origins at least as far back as the Magna Carta,” Chief Justice John Roberts wrote in the Court’s ruling. “The taxpayer must render unto Caesar what is Caesar’s, but no more.”

“In light of the U.S. Supreme Court decision issued on May 25, 2023, and the fact that the State Legislature may place a limit on when foreclosures can resume, the Tompkins County Property Tax Auction scheduled for June 5 will not go forward without further advice from New York State Authorities,” Tompkins County Attorney William Troy said in a statement about the change in plans.

A hand holding a gavel over a small model of a house

Photo by Marco Verch.

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