New York lawmakers are moving ahead with a rewrite of the state’s property tax enforcement laws to comply with a US Supreme Court decision that ruled them unconstitutional, but a Democrat involved in the reform efforts said the change may not be enough to survive future legal challenges.

New York is one of about a dozen states that have allowed local governments to keep the surplus from foreclosure sales, often amounting to many thousands of dollars more than what the homeowner owed in taxes. The Supreme Court last year deemed that practice unconstitutional in Tyler v. Hennepin County—a case ...

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