Michigan Court of Appeals Upholds Denial of Surplus Proceeds From Tax Foreclosure Sales

The Michigan Court of Appeals affirmed the denial of motions to disburse surplus proceeds from tax foreclosure sales. The taxpayers had failed to timely submit the required notice of intention to claim surplus proceeds as mandated by MCL 211.78t. Despite challenges to the constitutionality of the statute, the court upheld the trial court’s ruling that the statutory scheme satisfies due process requirements and does not constitute an unconstitutional taking, as it provides a mechanism for former property owners to claim surplus proceeds. The court rejected arguments for disregarding the statutory deadline, emphasizing that the legislature’s validly enacted procedure cannot be ...