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$8.41 in taxes man that's gonna leave a mark

Posted on 12/18/18 at 11:42 am
Posted by Jbird
In Bidenville with EthanL
Member since Oct 2012
73431 posts
Posted on 12/18/18 at 11:42 am
The son-in-law of a man whose house was taken from him because he underpaid his taxes by $8.41 said in an interview that aired Tuesday on "Rising" that he was shocked it could happen in the United States.

"You can't confiscate a house for such a ridiculous amount," Yair Adegeko, the son-in-law of Uri Rafaeli, told Hill.TV's Buck Sexton earlier this month.

Adegeko's comments come after the Michigan Court of Appeals ruled last year that county governments are permitted to use civil asset forfeiture to seize rental properties.

The case centers around Oakland County in Michigan, which foreclosed on Rafaeli's property in 2014 after he accidentally underpaid his property taxes by $8.41 in 2013.

"This is the kind of thing that shouldn't happen in the United States, and in fact, it can only happen in five states," Jonathan Wood, an attorney for the Pacific Legal Foundation, told Sexton in the same interview. "But in Michigan, until the Supreme Court overrules it, counties are able to take property over minor debts, sell them and keep every single penny."

The practice is also legal in Massachusetts, Minnesota, North Dakota, and Oregon.

Rafaeli's story was first brought to light by the Pacific Legal Foundation, which discussed the issue in a Wall Street Journal op-ed released earlier this month, detailing the issue. LINK
Posted by Wtodd
Tampa, FL
Member since Oct 2013
67482 posts
Posted on 12/18/18 at 11:43 am to
This is pretty fricked up
Posted by Jbird
In Bidenville with EthanL
Member since Oct 2012
73431 posts
Posted on 12/18/18 at 11:43 am to
quote:

This is pretty fricked up

Indeed.
Posted by SCLibertarian
Conway, South Carolina
Member since Aug 2013
36006 posts
Posted on 12/18/18 at 11:44 am to
quote:

that he was shocked it could happen in the United States.

Honest Bob would've recommended prison time as well.
Posted by Jbird
In Bidenville with EthanL
Member since Oct 2012
73431 posts
Posted on 12/18/18 at 11:45 am to
quote:

Honest Bob would've recommended prison time as well.

After running the guy out of money.

And threatening his son.
This post was edited on 12/18/18 at 11:46 am
Posted by dcbl
Good guys wear white hats.
Member since Sep 2013
29665 posts
Posted on 12/18/18 at 11:56 am to
is this something that can be appealed federally?

this seems like an egregious overreach and a due process violation
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
70991 posts
Posted on 12/18/18 at 12:00 pm to
quote:


is this something that can be appealed federally?


Excessive Fines clause.

Posted by BigJim
Baton Rouge
Member since Jan 2010
14489 posts
Posted on 12/18/18 at 12:18 pm to
quote:

This is pretty fricked up


Agreed! And not just amount, but the speed in which they did it:


quote:

The case centers around Oakland County in Michigan, which foreclosed on Rafaeli's property in 2014 after he accidentally underpaid his property taxes by $8.41 in 2013.


It takes longer than a year to fire a civil servant. How can they take a man's house that quick???
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
21237 posts
Posted on 12/18/18 at 12:23 pm to
I am currently claiming BS right now and there is more to it.
Posted by The Maj
Member since Sep 2016
27092 posts
Posted on 12/18/18 at 12:30 pm to
quote:

a man whose house was taken from him because he underpaid his taxes by $8.41


The "house" in question was owned by the man's business and it was not his personal residence... Also, the $8.41 underpayment was the interest on the tax that was not paid in 2011...

Watchdog.org


Not saying I agree with it but there is definitely more to the story...
Posted by Dale51
Member since Oct 2016
32378 posts
Posted on 12/18/18 at 12:33 pm to
quote:

is this something that can be appealed federally?

this seems like an egregious overreach and a due process violation


There's something hinky about this story.
There is always a notice for underpayments and a time given to pay, or interest starts to compound.
There has to be some unmentioned information. If someone makes a math error and underpays, it's "Got Ya, chump!! move your crap out of the house! It's ours!!"??
Posted by Bruiser Stone
Member since Dec 2018
137 posts
Posted on 12/18/18 at 12:35 pm to
quote:

Honest Bob would've recommended prison time as well.


Posted by Jbird
In Bidenville with EthanL
Member since Oct 2012
73431 posts
Posted on 12/18/18 at 12:35 pm to
quote:

Not saying I agree with it but there is definitely more to the story...

I am sure there is.
Posted by Dale51
Member since Oct 2016
32378 posts
Posted on 12/18/18 at 12:36 pm to
quote:

I am currently claiming BS right now and there is more to it.



I agree.
Posted by The Maj
Member since Sep 2016
27092 posts
Posted on 12/18/18 at 12:37 pm to
quote:

I am sure there is.


Ok, so why all up in arms about it? I imagine any state that requires the payment of property taxes has a procedure for foreclosure...
Posted by Jbird
In Bidenville with EthanL
Member since Oct 2012
73431 posts
Posted on 12/18/18 at 12:41 pm to
Rafaeli bought the property for $60,000 in 2011 and underpaid his taxes by $496 that year. He finally learned he had made a mistake two years later and tried to pay it off, but didn’t account for the interest that had accrued in the two years. Because of that calculation error, he lost his property.

In most states, the surplus of the sale of seized property is returned to the former owners. The state gets the revenue it deserves and the owner doesn’t forfeit all equity in the property to the government.

And it’s a boon for Michigan counties. Oakland County received $22.5 million in net proceeds from foreclosure auctions from 2006-15. It used some of that money for property maintenance and demolition as well as for funding tax foreclosures and property tax collection. The rest went into the general fund.

Wayne County receives similar benefit from the law. The county even includes this revenue as a line-item in its budget, projecting that this policy will earn over $10 million for the government in 2020.

The Michigan Supreme Court recently decided to hear Rafaeli’s case and will likely decide whether the county keeping more than it was owed constitutes a violation of the Fifth Amendment.

LINK
Posted by Dale51
Member since Oct 2016
32378 posts
Posted on 12/18/18 at 12:44 pm to
quote:

Rafaeli bought the property for $60,000 in 2011 and underpaid his taxes by $496 that year. He finally learned he had made a mistake two years later and tried to pay it off, but didn’t account for the interest that had accrued in the two years. Because of that calculation error, he lost his property.


That makes no sense. In a person under pays taxes a bill for that amount is sent. If that is not responded to, the next bill shows that amount plus interest.
Posted by omegaman66
greenwell springs
Member since Oct 2007
22777 posts
Posted on 12/18/18 at 12:44 pm to
Kind of reminds me of Whitewater!
Posted by Jbird
In Bidenville with EthanL
Member since Oct 2012
73431 posts
Posted on 12/18/18 at 12:47 pm to
quote:


That makes no sense.
Yeah not sure how fricked up Michigan is on this subject, we are missing some key data.

Shortly after Rafaeli lost his home, he sued in federal court but was told he had to go to state court instead. The federal trial judge noted in passing, however, that Rafaeli suffered “a manifest injustice that should find redress under the law.” In another similar case involving the seizure of a church property, a federal appellate court called Michigan’s behavior a “gross injustice” likened to “theft.” In yet another federal case, also dismissed, the judge declared Michigan’s abusive tax regime an “unconscionable” system while lamenting that no relief is available in federal court.

Taking the advice of the federal courts, Rafaeli sought relief in state court. He has fared no better up to now. In an appeal from his loss in state trial court, the panel of appellate judges determined that they could not return to him the excess funds collected by county because Rafaeli “acted contrary to the welfare of the state by failing to pay [his] taxes.” That result moved one of the appellate judges to write a separate opinion, agreeing that the decision was correct as a matter of precedent but calling it a “gross injustice.”

Only Michigan’s high court now has the power to declare this “gross injustice” unconstitutional. It must do so, putting an end to an “unconscionable” system. LINK
Posted by The Maj
Member since Sep 2016
27092 posts
Posted on 12/18/18 at 12:50 pm to
quote:

$60,000 in 2011 and underpaid his taxes by $496 that year. He finally learned he had made a mistake two years later



See, right here is where I have the issue... I am not familiar with Michigan property law and procedures but how did he learn of his mistake? Surely 2014 was not the first notice of delinquency...


Like I said, I am not siding either way really...
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