Damon Dash owes over $8.7 million in unpaid taxes, and New York State is seeking priority access to proceeds from the upcoming Roc-A-Fella Records auction.

Photo Credit: TRE Productions / CC by 4.0

The New York Department of Taxation & Finance filed a motion in Manhattan federal court to intervene in the auction proceedings scheduled for August 29. The United States Marshals Service will auction Dash's 33.3% stake in Roc-A-Fella Records, with a minimum bid set at $1.2 million.

The tax authorities claim Dash accumulated $8.7 million in back-taxes and penalties from personal income between 2005 and 2018. They view the auction as potentially their final opportunity to recover some of the long-standing debt.

The auction was originally ordered to satisfy an $823,000 judgment against Dash in a civil lawsuit by movie producer Josh Webber. However, the proceeds will be distributed in order of priority:

1. New York Department of Social Services ($145,096 in child support)
2. New York Department of Taxation & Finance (seeking position)
3. Josh Webber's civil judgment

The auction's primary asset is Jay-Z's debut album "Reasonable Doubt," as Roc-A-Fella Records dissolved in 2013. The label's remaining catalog is not included in the sale.

State attorneys emphasized their unsuccessful previous collection attempts, stating, "Intervening in this matter may be the Department's only opportunity to collect some of the unpaid taxes Dash owes to New York."

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