__NOTOC__ Pung v. Isabella County, , was a United States Supreme Court case in which the court held that the proper baseline for measuring "just compensation" following a tax sale is the auction sale price, not the property’s hypothetical fair market value, at least when the sale is fairly conducted in light of the country's history of tax sales.Syllabus of .
Background
The Pung family owed $2,241.93 in real-property taxes, so local tax authorities in Isabella County, Michigan, initiated foreclosure proceedings and sold the Pung home—which was assessed at $194,400 for tax purposes—for $76,008 at public auction. Michael Pung sued in federal district court, and the district court granted Pung partial summary judgment on his Fifth Amendment claim. The court held that Pung should receive only the surplus proceeds from the tax sale—i.e., the difference between the sale price and the tax debt—not the property’s fair market value. The district court also rejected Pung's claim under the Eighth Amendment Excessive Fines Clause. The Sixth Circuit Court of Appeals affirmed.
The Supreme Court granted certiorari.
Opinion of the court
The Supreme Court issued an opinion on June 23, 2026.
Later developments
References
External links