Bill > SB3940

This bill amends the Property Tax Code to allow counties to elect to acquire or sell tax-delinquent properties, and it establishes new procedures for tax deed auctions. A key provision grants property owners who lose equity due to a tax deed auction the right to recover that lost equity through an indemnity award, which is calculated as the property's fair cash value minus any mortgages, liens, and taxes paid by the tax purchaser. For counties with 3,000,000 or more inhabitants, the period of redemption, which is the time an owner has to reclaim their property after a tax sale, is extended to three years from the date of sale. The bill also clarifies definitions related to tax sales and tax deed auctions, and it outlines specific notice requirements for these auctions, including provisions for multiple languages in larger counties. Additionally, it introduces new procedures for judicial tax deed auctions, including minimum bid requirements and the distribution of surplus funds from these auctions. The bill also makes changes to the Mortgage Rescue Fraud Act, requiring distressed property purchasers to inform owners about their potential right to recover lost equity from tax sales.

Budget and Finance

https://www.ilga.gov/Legislation/BillStatus?DocNum=3940&GAID=18&DocTypeID=SB&SessionID=114&GA=104