Pung v. Isabella County: U.S. Supreme Court Revisits Takings, Excessive Fines in Property Tax Forfeitures

The U.S. Supreme Court is set to revisit constitutional questions surrounding property tax forfeitures in Pung v. Isabella County, the latest state and local tax (SALT) case on its docket. In this episode of "Real Estate Law Unlocked," Partners Alexander Lycoyannis and Jennifer Karpchuk examine the background of the case and share their perspectives on how the justices may view the arguments from both parties. To frame the issues at stake, Ms. Karpchuk reviews the high court's 2023 decision in Tyler v. Hennepin County, which involved a similar fact pattern: A government entity seized a home over unpaid taxes, sold the property to satisfy the debt and retained the surplus proceeds. The court ruled unanimously for the property owner on her Fifth Amendment takings claim but did not address the Eighth Amendment excessive fines question, as the takings remedy fully addressed her harm. As Ms. Karpchuk explains, the ruling in Pung v. Isabella County could reshape property tax forfeiture law nationwide. Oral arguments are scheduled for February 25, 2026.