What Pung v. Isabella County Means for Investors, Governments, and the Future of the Industry

The National Tax Lien Association exists to protect the integrity of the property tax system and to advocate for fair, transparent, and lawful tax collection processes that fund essential local government services. In furtherance of that mission, the NTLA has formally filed an amicus curiae brief with the United States Supreme Court in Pung v. Isabella County.

This case has significant implications for local governments, tax collectors, investors, and ultimately the communities that rely on property taxes to fund schools, public safety, and infrastructure.

Why This Case Matters

At its core, Pung v. Isabella County challenges the long-established authority of local governments to enforce delinquent property taxes through tax foreclosure and public auction. These systems are not punitive. They exist to ensure that:

• Property owners contribute their fair share for the public services they receive
• Local governments can maintain stable and predictable revenue streams
• Abandoned and tax-delinquent properties return to productive use under new ownership

If the Supreme Court were to restrict or dismantle these mechanisms, the consequences would extend far beyond a single county or state.

Key Points from the NTLA Amicus Brief

In its brief, the NTLA focuses on several critical principles that protect both taxpayers and communities nationwide:

1. Property Taxes Are the Foundation of Local Government
   
   Property taxes fund essential services. When taxes go unpaid, local governments must have effective, lawful tools to collect them or risk service cuts, blight, and fiscal instability.
   
   
2. Tax Foreclosure Is a Constitutional and Longstanding Remedy
   
   Tax foreclosure and public auction systems have existed for centuries. They are rooted in due process, notice, and opportunity to cure. These systems are not confiscatory when properly administered.
   
   
3. Public Auctions Create Accountability and Transparency
   
   Open, competitive auctions ensure fair market outcomes and prevent arbitrary government action. They also allow new owners to step in and responsibly pay future taxes.
   
   
4. Undermining Tax Foreclosure Harms Communities
   
   Limiting tax foreclosure authority would:
   •  Increase abandoned and delinquent properties
   •  Shift the tax burden onto compliant taxpayers
   •  Reduce funding for schools, emergency services, and infrastructure
   
   
5. Investors Play a Critical Role
   
   Responsible tax lien and tax deed investors help local governments recover unpaid taxes, stabilize neighborhoods, and return properties to productive use.
   
   The NTLA’s position is clear. Taxes must be paid, due process must be honored, and local governments must retain lawful authority to enforce tax obligations.
   
   
   

NTLA Advocacy on Behalf of Members

This amicus brief is part of the NTLA’s broader commitment to advocacy at the highest levels. We are actively engaged with legal counsel, policymakers, and stakeholders nationwide to ensure that court decisions reflect real-world consequences and protect lawful tax collection systems.

Our goal is not just to defend the industry, but to defend the communities that depend on it.

Upcoming NTLA Supreme Court Webinar

To help our members fully understand the stakes of this case, the NTLA will host a one-hour educational webinar featuring leading legal experts:

Date: February 12

Time: 2:00 PM Eastern

Featuring:

• Bronster LLP
• Nelson Mullins

This session will cover:

• A plain-language overview of Pung v. Isabella County
• How the case relates to Tyler v. Hennepin County
• Potential outcomes and timelines
• Practical implications for local governments and investors

Webinar Registration:

All NTLA Members and the public can register here.