Virginia Court Revives Taxpayers’ Surplus Tax Sale Funds Claim

A Virginia circuit court prematurely dismissed a claim for tax sale surplus funds and must redetermine how the funds should be properly distributed, the state appeals court ruled Tuesday.

The lower court dismissed a deceased woman’s heirs’ claim to proceeds from her sold property after determining the funds either belonged to Norfolk City, Va., or Citibank because the deceased woman had secured a credit line against the property.

“We find that the dismissal of the heirs’ claims was premature on this record,” Virginia Court of Appeals Judge Frank K. Friedman wrote. “No hearing or briefing was ever held on ...