Kentucky Supreme Court Affirms Pro Rata Distribution for Property Tax Lienholders

The Kentucky Supreme Court ruled that the holders of certificates of delinquency for unpaid property taxes are each entitled to a pro rata distribution of the sales proceeds according to their liens. The case arose from a dispute over the distribution of funds from a master commissioner’s property auction, where multiple parties held certificates of delinquency for unpaid property taxes. The Supreme Court affirmed the Court of Appeals finding that the legislature, through its statutory enactments, exempted tax liens from being subject to the common law rule of “first in time, first in right” and instead mandated a pro rata ...