The state of New York says music mogul Damon Dash Owes $8.7 million in unpaid taxes, and they’re intercepting a planned auction designed to settle other debts to get it.
Dash partnered with Jay-Z and Kareem “Biggs” Burke to co-found Roc-A-Fella Records in 1994 and currently maintains a one-third stake in the mega-deal. The United States Marshals Service ordered the auction of Dash’s stake in Roc-A-Fella to settle an $823,000 lawsuit he lost to film producer Josh Webber over a failed film agreement and $145,000 that he owed in unpaid child support.
The state’s tax agency is now claiming the auction must first pay off Dash’s huge tax bill, according to Billboard.
![Damon Dash and Jay-Z during The Launch of Jay Z's 40/40 Club - Inside Party at 40/40 Sports Bar in New York City, New York, United States. (Photo by Johnny Nunez/WireImage) Getty Images](https://cdn01.dailycaller.com/wp-content/uploads/2024/08/GettyImages-452940343.jpg)
Damon Dash and Jay-Z during The Launch of Jay Z’s 40/40 Club – Inside Party at 40/40 Sports Bar in New York City, New York, United States. (Photo by Johnny Nunez/WireImage) Getty Images
New York’s Department of Taxation & Finance filed a motion in Manhattan federal court Wednesday requesting to legally intervene in the proceedings of the Aug. 29 auction. If the motion passes, it’s unclear if there will be any proceeds left to settle the other debts.
Tax authorities claimed the $8.7 million Dash owes stem from unpaid taxes and penalties from personal income for the 2005 and 2018 periods, according to Billboard.
“To date, the Department has been unsuccessful in its efforts to collect the unpaid New York State tax debt owed by Dash,” attorneys for the state wrote in the motion, according to Billboard.
![Damon Dash and Jay-Z (Photo by Ray Mickshaw/WireImage) Getty Images](https://cdn01.dailycaller.com/wp-content/uploads/2024/08/GettyImages-98677662.jpg)
Damon Dash and Jay-Z (Photo by Ray Mickshaw/WireImage) Getty Images
They noted they believe the Roc-A-Fella auction might be their last opportunity to recover the debt that has been “delinquent for far too long.”
The tax department noted they are not seeking repayment ahead of child services. The $145,096 in child support arrears is expected to be the first debt to be settled. However, they pointed out that they secured their lien against Roc-A-Fella proceeds at least a decade before Webber, according to Billboard.
![Jay-Z performs with Damon Dash, Pharell Williams of The Neptunes, and The Roots on "MTV Unplugged" at the MTV studios in New York City. 11/18/01 Photo by Scott Gries/ImageDirect Getty Images](https://cdn01.dailycaller.com/wp-content/uploads/2024/08/GettyImages-2284656.jpg)
Jay-Z performs with Damon Dash, Pharell Williams of The Neptunes, and The Roots on “MTV Unplugged” at the MTV studios in New York City. 11/18/01 Photo by Scott Gries/ImageDirect Getty Images
The Roc-A-Fella auction will be held at a Manhattan hotel and have a minimum bid of $1.2 million. The primary asset is Jay-Z’s iconic debut album “Reasonable Doubt.” The album generated millions, but Roc-A-Fella’s rights to “Reasonable Doubt” could expire in 2031 due to copyright laws that would allow Jay-Z to reclaim full control, according to Billboard.
The remainder of the music catalog released by Roc-A-Fella is not involved in the case. (RELATED: Priscilla Presley Files Lawsuit Against Former Business Associates Claiming They Swindled Over $1 Million: REPORT)
Jay-Z and Burke have already attempted to stop the auction by adjusting the company’s bylaws and attempting to intervene in the lawsuit, but in February, a federal judge ruled the matter will move forward.