Illinois Legislature Approves Property Tax Debt Sale Reform to Protect Homeowners' Equity
The Illinois legislature has passed a bill aimed at reforming the state's regulations on delinquent property tax sales, allowing homeowners to retain their equity. House Bill 4537, which passed the House 80-35 and the Senate 56-1-1, addresses the issue of surplus funds from property sales. Previously, Illinois was the last state not in compliance with the 2023 Supreme Court decision in Tyler v. Hennepin County, which mandates that surplus funds from property sales must be returned to the original property owner. The bill allows counties to purchase tax debts and provides homeowners with more opportunities to repay their debts. It also introduces a pilot program in Cook County to test the new process, requiring annual reports to the General Assembly. The bill's sponsor, Sen. Celina Villanueva, emphasized the importance of protecting homeowners from losing their equity due to delinquent property taxes. 
