Justices to consider constitutionality of tax foreclosure sales

SCOTUSblog

by Ronald Mann

February 20, 2026

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The Supreme Court is set to examine whether tax foreclosure sales are constitutional in the case of *Pung v. Isabella County*. The issue revolves around Michael Pung, who inherited property taxes owed by his nephew Timothy. When Pung refused to pay $2,200 in back taxes, the county foreclosed and sold the property for $76,000, despite its market value of $200,000. Pung argues that he should receive the difference under the Fifth Amendment's just compensation clause, as the sale price was far below the home's worth. The county counters that this long-standing practice is legal and has been upheld for centuries. The case hinges on whether the government must provide fair market value in such sales or if the process itself is sufficient. Pung also claims the sale constitutes an excessive fine under the Eighth Amendment, though he did receive surplus funds from the sale after the Supreme Court's ruling in *Tyler v. Hennepin County*. Isabella County maintains that proper procedures were followed, including adequate notice

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Originally published on SCOTUSblog on 2/20/2026