The Ohio Supreme Court has taken up a significant case concerning Cuyahoga County’s property tax foreclosure process. Homeowners argue that the county retained the excess value of their properties, which far exceeded their unpaid tax debts, without returning the surplus to them.
Constitutional Concerns
The case involves three former homeowners who lost their properties due to unpaid property taxes ranging from several hundred to several thousand dollars. Angelo Craig, for instance, owed approximately $620 in unpaid taxes when the county initiated foreclosure proceedings. Similar actions were taken against Angela Taylor and Abraham David for tax debts of $4,655 and $3,384, respectively.
While the legality of the foreclosures themselves is not being contested, the plaintiffs argue that the county’s practice of keeping surplus property value violates constitutional protections under the Takings Clause and the Excessive Fines Clause of the Ohio Constitution. Attorney Ben Flowers, representing the plaintiffs, emphasized in court filings that this practice is both widespread and unconstitutional in Ohio.
Foreclosure Process Under Scrutiny
Under Ohio law, counties can foreclose on properties when property taxes go unpaid. Typically, homes are auctioned, and any proceeds exceeding the tax debt are returned to the former owners. However, in these cases, the properties did not sell at auction, and no proceeds were distributed. Auction minimum bids ranged between $12,000 and $27,000, but no buyers met these thresholds.
In some instances, the value of the homes significantly exceeded the unpaid tax amounts. One property had a market value of approximately $45,000, with a tax debt of about $12,400. Another home was valued at approximately $90,000, with a tax debt of about $14,000 at the time of foreclosure.
The Ohio Supreme Court’s decision could set a precedent for how counties handle surplus equity in tax foreclosure cases moving forward. The court will determine the next steps for briefing and potential oral arguments.
Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.
