NORWICH – Navigating changes in federal law that alter the way proceeds of tax foreclosed properties are distributed, Chenango County officials are uncertain of the impact those changes will have on the county’s annual budget.


The county has long held the tradition of selling tax foreclosed properties to the highest bidder. However, the practice was upended by a 2023 ruling of the U.S. Supreme Court which favored 

a 94-year-old Minneapolis woman, allowing her to recoup some money after her county kept the entire $40,000 when it sold her condominium over a small unpaid tax bill.


The justices ruled unanimously that Hennepin County in Minnesota infringed the constitutional rights of the woman, Geraldine Tyler, by possessing her property without offering her "just compensation.”


The landmark ruling has altered the way Chenango County can proceed with tax foreclosed properties, making it difficult for bookkeepers to be certain of the net gains and losses of properties that have been auctioned off. The new legislation applies to surplus derived from any tax foreclosure sales conducted after May 25, 2023.


Under stipulations of the new law, the county can now auction off properties which have undergone tax foreclosure and keep only the money owed on taxes before giving residents and lienholders a chance to claim the rest. Homeowners have up to three years to make a claim, while lienholders have 30 days from the time the county files its sales report to the court.