For a number of years, when a property tax foreclosure sale occurs, Michigan counties have frequently kept excess proceeds from the sale beyond the taxes, interest and penalties owned by the property owner. Recently, in Rafaeli, LLC v Oakland County (decided on July 17, 2022), the Michigan Supreme Court held that counties generally cannot keep such excess property tax foreclosure proceeds and must return the surplus to the property owner. Lower courts in Michigan will decide how to implement this important decision. This decision may affect the allocation of property tax deficiencies between counties versus cities, villages and townships.