Keith Smith v. Apex Fund Services as Custodian for Ceres Tax Receivables, LLC

Summary

The Kentucky Supreme Court held that tax liens held by the state, local taxing bodies, and third-party certificate purchasers are of equal rank and are not governed by the usual first-in-time priority rule. When foreclosure-sale proceeds are insufficient to satisfy those liens and associated authorized costs, the proceeds must be distributed pro rata according to each lienholder's proven claim. The Court affirmed the Court of Appeals and remanded for proof of the amounts owed and calculation of the pro rata distribution.