SB2830 104TH GENERAL ASSEMBLY

LRB104 16676 RTM 30080 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2830

Introduced 1/13/2026, by Sen. Willie Preston

SYNOPSIS AS INTRODUCED:

New Act

Creates the Property Justice Act. Provides that no interest shall be paid on any sale-in-error refund arising from an error or omission of a county assessor, county treasurer, sheriff, or other county office. Provides that, if interest on a sale-in-error refund is permitted, then the interest shall not exceed 6% annually. Provides that a tax purchaser may not receive more than $2,000,000 in cumulative sale-in-error refunds in a year. Provides that a tax purchaser shall be responsible for not less than 10% of the purchase amount in any sale-in-error arising from conditions discoverable upon ordinary due diligence at the time of sale. Provides that, before an annual tax sale or scavenger sale is conducted, specified officials must each execute a presale certification stating that the parcels are legally eligible for sale, that notices have been properly served, and that assessed and delinquent amounts are accurate. Creates the Community Revitalization Property Trust. Provides that the Trust shall acquire parcels that (1) receive no bids in a scavenger sale or (2) are located in a distressed municipality. Provides that the Trust shall (1) clear title on any property acquired by the Trust; (2) extinguish liens on any property acquired by the Trust; (3) package parcels acquired by the Trust for redevelopment; (4) convey parcels owned by the Trust for $1 to qualified local purchasers, including residents, nonprofits, faith-based organizations, or small developers; and (5) prioritize community-driven redevelopment. Provides that, if the State and local delinquent taxes on a parcel exceed 125% of the assessed market value of a parcel, then all amounts in excess of 125% are extinguished. Provides that the State Treasurer shall publish quarterly reports containing: (1) all sale-in-error refunds issued because of an error or omission by a county assessor, county treasurer, sheriff, or other county office; (2) the county office that caused the error or omission; and (3) the payments made because of the error or omission. Limits home rule powers. Effective immediately.

A BILL FOR

AN ACT concerning government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Property Justice Act.

Section 5. Legislative findings. The General Assembly finds and declares the following:

(1) Numerous municipalities in Cook County have experienced systemic disinvestment, high concentrations of tax-delinquent properties, and repeated entry of parcels into scavenger sales.

(2) Large volumes of sales-in-error refunds have resulted from county errors, including failures of notice service, incorrect assessments, and miscalculated taxes.

(3) Sale-in-error refunds currently place the entire financial burden on taxpayers while enabling risk-free speculation by tax purchasers.

(4) In distressed municipalities, the assessed value of properties is often lower than the delinquent tax amount, rendering parcels unsellable and preventing community recovery.

(5) The public interest requires reforms to ensure accuracy in the tax sale process, eliminate risk-free speculation, return land to productive use, and provide mechanisms for distressed communities to rebuild.

Section 10. Definitions. As used in this Act:

"Community Revitalization Property Trust" or "Trust" means the entity created under Section 30.

"Distressed municipality" means any municipality in which (i) more than 20% of parcels in the municipality were offered in the most recent scavenger sale or (ii) more than 35% of parcels offered in the most recent scavenger sale have delinquent taxes exceeding the assessed market value.

"Presale certification" means the written affirmation described in Section 25.

Section 15. Limits on sale-in-error interest.

(a) No interest shall be paid on any sale-in-error refund arising from an error or omission of a county assessor, county treasurer, sheriff, or other county office.

(b) If interest on a sale-in-error refund is permitted, then the interest shall not exceed 6% annually.

(c) A tax purchaser may not receive more than $2,000,000 in cumulative sale-in-error refunds in a year.

Section 20. Risk-sharing requirement.

(a) A tax purchaser shall be responsible for not less than 10% of the purchase amount in any sale-in-error arising from conditions discoverable upon ordinary due diligence at the time of sale.

(b) The State Treasurer shall adopt rules establishing due diligence standards for the purposes of subsection (a).

Section 25. County presale certification.

(a) Before an annual tax sale or scavenger sale is conducted, the following officials must each execute a presale certification stating that the parcels are legally eligible for sale, that notices have been properly served, and that assessed and delinquent amounts are accurate:

(1) the county assessor;

(2) the county treasurer;

(3) the sheriff;

(4) the clerk of the circuit court.

(b) A sale conducted without a complete presale certification is void.

Section 30. Community Revitalization Property Trust.

(a) The Community Revitalization Property Trust is created as a political subdivision of the State.

(b) The Trust shall acquire parcels that:

(1) receive no bids in a scavenger sale;

(2) are located in a distressed municipality; or

(3) are transferred under Sections 35 and 40.

(c) The Trust shall:

(1) clear title on any property acquired by the Trust;

(2) extinguish liens on any property acquired by the Trust;

(3) package parcels acquired by the Trust for redevelopment;

(4) convey parcels owned by the Trust for $1 to qualified local purchasers, including residents, nonprofits, faith-based organizations, or small developers; and

(5) prioritize community-driven redevelopment.

Section 35. Automatic excess-debt forgiveness.

(a) If the State and local delinquent taxes on a parcel exceed 125% of the assessed market value of a parcel, then all amounts in excess of 125% are extinguished.

(b) Parcels qualifying under subsection (a) that receive no bids in a scavenger sale shall be transferred to the Trust.

Section 40. Moratorium on scavenger sales in distressed municipalities.

(a) A parcel located in a distressed municipality may not be offered for sale in a scavenger sale.

(b) A parcel in a distressed municipality that would have been offered for sale in a scavenger sale shall instead be transferred to:

(1) the Cook County Land Bank Authority;

(2) the Trust; or

(3) a qualified municipality redevelopment authority.

Section 45. Reporting requirements.

(a) The State Treasurer shall publish quarterly reports containing:

(1) all sale-in-error refunds issued because of an error or omission by a county assessor, county treasurer, sheriff, or other county office;

(2) the county office that caused the error or omission; and

(3) the payments made because of the error or omission.

(b) The reports published under subsection (a) shall be publicly accessible and searchable.

Section 50. Act takes precedence. In case of any conflict between the provisions of this Act and any other law, executive order, or administrative rule, the provisions of this Act prevail and control.

Section 55. Home rule preemption.

(a) A home rule unit may not impose a tax inconsistent in a manner inconsistent with this Act. This Act is a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

(b) A home rule unit may not regulate the sale or transfer of property in a manner inconsistent with this Act. This Act is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 99. Effective date. This Act takes effect upon becoming law.