The Michigan Supreme Court has ruled that its 2020 decision, which deemed it unconstitutional for local governments to retain profits from tax foreclosure sales, applies retroactively. This ruling allows former property owners, whose homes were sold for more than their owed taxes prior to 2020, to claim surplus proceeds. The court's decision affects tens of thousands of individuals and could potentially return hundreds of millions of dollars to these property owners. The ruling stemmed from cases involving plaintiffs such as Uri Rafaeli, who lost properties to foreclosure and were denied excess funds. Local governments, represented by the Michigan Municipal League, expressed concern that this could lead to significant financial strain, as they followed existing laws at the time. Justice Brian Zahra emphasized the importance of constitutional rights over statutory directives, indicating that the ruling aims to rectify past governmental violations.