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U.S. Supreme Court: "Just compensation" from tax sale is auction sale price, not fair market value

Clarifies that just compensation for a fairly conducted tax foreclosure sale is the actual auction price rather than hypothetical fair market value.

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JUNE 23, 2026

The U.S. Supreme Court today held that "just compensation” for purposes of the Takings Clause of the Fifth Amendment, from a tax sale that is fairly conducted, is the auction sale price, not the sold property’s hypothetical fair market value.

The case is: Pung v. Isabella County, No. 25-95 (S. Ct. June 23, 2026). Read the Court’s opinion

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