Bill Text: IL SB3940 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that a county, as trustee, may elect to acquire or sell tax delinquent property. Provides that the owner of property who sustains loss or damage by reason of the issuance of a deed at a tax deed auction shall have the right to recover surplus equity which was lost in the property through an award of indemnity. Provides that, in counties with 3,000,000 or more inhabitants, the period of redemption is 3 years from the date of sale.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Introduced - Dead) 2026-06-01 - Senate Committee Amendment No. 2 Rule 3-9(a) / Re-referred to Assignments [SB3940 Detail]

Download: Illinois-2025-SB3940-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026SB3940 Introduced 2/6/2026, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED:
35 ILCS 200/1-21 new
35 ILCS 200/1-22 new
35 ILCS 200/21-90
35 ILCS 200/21-110
35 ILCS 200/21-115
35 ILCS 200/21-160
35 ILCS 200/21-190
35 ILCS 200/21-205
35 ILCS 200/21-215
35 ILCS 200/21-225
35 ILCS 200/21-302 new
35 ILCS 200/21-305
35 ILCS 200/21-350
35 ILCS 200/22-5
35 ILCS 200/22-10
35 ILCS 200/22-40
35 ILCS 200/22-42 new
35 ILCS 200/22-65
765 ILCS 940/5
765 ILCS 940/30
Amends the Property Tax Code. Provides that a county, as trustee, may elect to acquire or sell tax delinquent property. Provides that the owner of property who sustains loss or damage by reason of the issuance of a deed at a tax deed auction shall have the right to recover surplus equity which was lost in the property through an award of indemnity. Provides that, in counties with 3,000,000 or more inhabitants, the period of redemption is 3 years from the date of sale.
LRB104 17732 HLH 31163 b
A BILL FOR
SB3940 LRB104 17732 HLH 31163 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 21-90, 21-110, 21-115, 21-160, 21-190, 21-205,
21-215, 21-225, 21-305, 21-350, 22-5, 22-10, 22-40, and 22-65
and by adding Sections 1-21, 1-22, 21-302, and 22-42 as
follows:
(35 ILCS 200/1-21 new)
Sec. 1-21. Interested party. "Interested party" means any
party having an interest in the property as revealed by a title
examination of public records. "Interested party" does not
include the holder of the benefit or burden of any easement
whose interest is properly recorded, which interest shall
remain unaffected by property tax enforcement proceedings.
(35 ILCS 200/1-22 new)
Sec. 1-22. Tax Sale and Tax Deed Auction.
(a) "Tax sale" means the transfer of a property tax lien or
tax certificate in accordance with Sections 21-90, 21-145,
21-205, 21- 225, 21-250, or 21-260 of this Code.
(b) "Tax deed auction" means the transfer of property by
an auction conducted in accordance with Sections 21-90, 22-10,

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22-40, or 22-42 of this Code.
(35 ILCS 200/21-90)
Sec. 21-90. Purchase and sale by county; distribution of
proceeds.
(a) When any property is offered at a for sale under any of
the provisions of this Code, the county board of the county in
which the property is located, in its discretion, may bid, or,
in the case of forfeited property, may apply to purchase it or
otherwise acquire the tax lien or certificate in the name of
the county as trustee for all taxing districts having an
interest in the property's taxes or special assessments for
the nonpayment of which the property is sold. The presiding
officer of the county board, with the advice and consent of the
board, may appoint on its behalf some officer, person, or
entity to attend such sales, bid on tax liens or certificates,
and act on behalf of the county when exercising its authority
under this Section. The county shall apply on the bid or
purchase the unpaid taxes and special assessments due upon the
property. No cash need be paid.
(b) The county, as trustee for all taxing districts having
an interest in the property's taxes or special assessments,
shall be the designated holder of all tax liens or
certificates that are forfeited to the State or county or
otherwise acquired by the county pursuant to subsection (a) of
this Section or Sections 21-190 to 21-255 of this Code. No cash

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need be paid for any tax lien or certificate acquired by the
county pursuant to subsection (a) of this Section or Section
21-190 through 21-255 of this Code the forfeited tax lien or
certificate.
(c) For any tax lien or certificate acquired under
subsection (a) or (b) of this Section, or for any property
otherwise purchased or acquired by the county pursuant to
Sections 190 to 255 of this Code, the county may take steps
necessary to acquire or sell title to the property and may
manage and operate the property, including, but not limited
to, mowing of grass, removal of nuisance greenery, removal of
garbage, waste, debris or other materials, or the demolition,
repair, or remediation of unsafe structures. When a county, or
other taxing district within the county, is a petitioner for a
tax deed, no filing fee shall be required. When a county or
other taxing district within the county is the petitioner for
a tax deed, one petition may be filed including all parcels
that are tax delinquent within the county or taxing district,
and any publication made under Section 22-20 of this Code may
combine all such parcels within a single notice. The notice
may include the property street address as listed on the most
recent available tax bills, if available, and shall list the
Property Index Number of the parcels for informational
purposes. The county, as tax creditor and as trustee for other
tax creditors, or other taxing district within the county,
shall not be required to allege and prove that all taxes and

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special assessments which become due and payable after the
sale or forfeiture to the county have been paid nor shall the
county be required to pay the subsequently accruing taxes or
special assessments at any time. The county board or its
designee may prohibit the county collector from including the
property in the tax sale of one or more subsequent years. The
lien of taxes and special assessments which become due and
payable after a tax sale to a county shall merge in the fee
title of the county, or other taxing district within the
county, on the issuance of a deed.
The county may sell any property acquired with authority
provided in this Section, or assign any tax certificate to any
party, including, but not limited to, taxing districts,
municipalities, land banks created pursuant to Illinois law,
or non-profit developers focused on constructing affordable
housing.
The assigned tax certificate shall be void with no further
rights given to the assignee, including no right to refund or
reimbursement, if a tax deed resulting from a tax deed auction
has not been recorded within 4 years after the date of the
assignment unless a court extends the assignment period as
provided in this Section. Upon a motion by the assignee, a
court may toll the 4-year deadline for a specified period of
time if the court finds the assignee is prevented from
obtaining or recording a deed by injunction or order of any
court, by the refusal or inability of any court to act upon the

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application for a tax deed, by a municipality's refusal to
issue necessary transfer stamps or approvals for recording, or
by the refusal of the clerk to execute the deed. If an assigned
tax certificate is void under this Section, it shall be
forfeited to the county and held as a valid certificate of sale
in the county's name pursuant to this Section 21-90. The
proceeds of any sale or assignment under this Section, less
all costs of the county incurred in the acquisition,
operation, maintenance, and sale of the property or assignment
of the tax certificate, including all costs associated with
county staff and overhead used to perform the duties of the
trustee set forth in this Section, and less any surplus
payments to owners, shall be distributed to the taxing
districts in proportion to their respective interests therein.
Under Sections 21-110, 21-115, 21-120, and 21-190, a
county may bid or purchase only in the absence of other
bidders.
(d) The county, as trustee, may elect to acquire or sell
tax delinquent property under either the provisions of this
Section, or under Sections 22-10, 22-40, and 22-42 of this
Code.
(e) When the county, as trustee, files a petition for one
or more delinquent tax liens or certificates, the county may
request, pursuant to Section 22-40, that the court issue a tax
deed to the county, as trustee, without holding a judicial tax
deed auction. If the county requests a tax deed without a tax

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deed auction pursuant to Section 22- 40 and 22-42 of this Code,
the Order for Issuance of Tax Deed shall identify the total
amount of delinquent taxes and penalties, municipal
advancements identified in Section 22-35, pro rata county
costs incurred pursuant to subsections (a) through (c) of
Section 21-90, and other posted costs for each parcel
conveyed. This judgment amount shall be considered the amount
for which the county, as trustee, has purchased the property.
The Order for Issuance of Tax Deed shall also include an order
for the county to offer each parcel purchased by the county in
this manner for sale at a public tax deed auction, as set forth
in subsection (f) of this Section, within 120 days of
recording the tax deed. The purpose of the public tax deed
auction as set forth in subsection (f) of this Section is to
determine whether and to what extent there are surplus funds
owed by the county, as trustee, to the former owner that exceed
the judgment amount indicated in the Order for Issuance of Tax
Deed. If no party bids more than this amount at the public tax
deed auction described in subsection (f) of Section 21-90,
then the purchase price will be recorded as the amount the
county, as trustee, paid for the property as reflected in the
Order for Issuance of Tax Deed, and there are no surplus funds
owed to the former owner.
(f) County Tax Deed Auctions. Tax deed auctions held by
the county pursuant to this Section shall conform with the
following requirements.

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(1) Notice. The county or its agent shall give notice
of the tax deed auction with the following information:
(i) the Property Identification Number and
property address listed on the latest tax bill;
(ii) the time and place of the auction;
(iii) the terms of the auction; and
(iv) the total amount of delinquent taxes and
penalties, municipal advancements identified in
Section 22-35, pro rata county costs incurred pursuant
to subsections (a) through (c) of Section 21-90, and
other posted costs.
In counties with 3,000,000 or more inhabitants, the
notice of tax deed auction shall be in clear and concise
language, together with a notice in Spanish, Polish, and
Mandarin Chinese, stating that the notice of tax deed
auction affects important legal rights and should be
translated immediately. The notice of tax deed auction
shall be mailed via first class mail to all interested
parties, and via first class mail and certified mail to
the owner of the property at the time the tax deed was
issued, at the address(es) at which service of process was
made. If service of process was made in any manner other
than personal service, substitute service, corporate
service, or government service, notice shall be mailed via
first class mail to all addresses included in the notice
served pursuant to Section 22-25. The notice shall include

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a sworn certificate of service signed by the party sending
the notice attesting to the fact that the notice of tax
deed auction was placed in the mail at least 21 calendar
days prior to the date of the auction. The notice of tax
deed auction shall be published at least 3 consecutive
calendar weeks (Sunday through Saturday), once in each
week, the first such notice to be published not more than
45 days prior to the tax deed auction, the last such notice
to be published not less than 7 days prior to the auction.
If the property is located in a municipality in a county
with less than 3,000,000 inhabitants, all parcels may be
contained within a single notice, or if the property is
located in a county with 3,000,000 or more inhabitants,
the notice shall be published in a newspaper published
within the county. The publication shall include all
information included in the notice sent pursuant to this
Section. At least 21 days prior to the date of the auction,
the county or its agent must post on its website a list of
all properties that are to be offered for sale at the tax
deed auction and the other information contained in the
notice of tax deed auction. The person conducting the
auction may engage in activities to promote and market the
sale to encourage and facilitate bidding, including
listing the property on the county's or its agent's
website, other real estate websites, and conducting email
campaigns.

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(2) Minimum Bid. The county shall establish minimum
bids at any tax deed auction held pursuant to this
Section, that shall equal the total amount of delinquent
taxes and penalties, municipal advancements identified in
Section 22-35, pro rata county costs incurred pursuant to
subsections (a) through (c) of Section 21-90(a)-(c), and
other posted costs, for the auctioned parcel, as
identified in the Order for Issuance of Tax Deed. In
counties with less than 3,000,000 inhabitants, the county
may establish minimum bids at any tax deed auction held
pursuant to this Section, that may equal the total amount
of delinquent taxes and penalties, municipal advancements
identified in Section 22-35, pro rata county costs
incurred pursuant to subsections (a) through (c) of
Section 21-90, and other posted costs, for the auctioned
parcel, as identified in the Order for Issuance of Tax
Deed. As used in this Section, "pro rata county costs" may
include costs incurred by the county in filing one
petition for more than one delinquent tax lien or
certificate, and all costs related to the filing of the
one petition and obtaining tax deeds for the liens and
certificates identified in the one petition, reasonably
apportioned and included in the total costs for each
individual tax deed issued pursuant to the petition.
(3) Adjournment. If a tax deed auction is postponed,
adjourned, or re-scheduled to occur less than 60 days

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after the last scheduled auction, the county shall
announce the date, time and place upon which the adjourned
tax deed auction shall be held at the time, date, and
location in the notice. At a minimum, this announcement
shall be posted on the website of the county, as trustee,
or the county treasurer in the same location where the
county posted the list of all properties that are to be
sold at the auction as required in paragraph (1) of
subsection (f) of Section 21-90. The County is not
required to send additional notice of any postponed tax
deed auction as provided in paragraph (1) of subsection
(f) of Section 21-90. Notwithstanding any language to the
contrary, for tax deed auctions that are conducted more
than 60 days after the date in the required notice, the
county shall send notice of the adjourned tax deed auction
in accordance with paragraph (1) of subsection (f) of
Section 21-90.
(4) Payment for Winning Bid. The county shall
participate in a public tax deed auction in the same
manner as any other bidder. No matter the terms of the tax
deed auction prescribed by the county, if the county is
the winning bidder it is required to pay the full amount of
any county bid that exceeds the credit bid prior to the
deposit of surplus funds with the treasurer of the county
as set forth in paragraph (6) of this Section.
(5) Marketability of Title. Failure to hold a public

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tax deed auction of the parcels received within the
180-day period shall not affect the validity of the
recorded deed, the Order for Issuance of Tax Deed, or
otherwise affect the marketability of title, but the
county is prohibited from transferring such parcels or
assigning the recorded deed without holding a public tax
deed auction pursuant to Section 21-90(f) or a judicial
tax deed auction pursuant to Section 22-40.
(6) Disbursement of Surplus Funds. To the extent that
the winning bid at the tax deed auction exceeds the amount
of the tax deed judgment as defined in subsection (e) of
Section 21-90, within 30 days of the auction sale the
county trustee shall deposit the surplus funds with the
treasurer of the county in which the subject property
lies. Within 60 days of the tax deed auction at which the
property was purchased, the county, as trustee, shall send
a notice to interested parties in the underlying case,
stating that the owner is entitled to a distribution of
surplus proceeds and may file a claim pursuant to
subsection (i) of Section 22-40 of the Property Tax Code.
In counties with 3,000,000 or more inhabitants, the notice
shall be in clear and concise language, together with a
notice in Spanish, Polish, and Mandarin Chinese, stating
that the notice affects important legal rights and should
be translated immediately.
(Source: P.A. 102-363, eff. 1-1-22; 103-555, eff. 1-1-24.)

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(35 ILCS 200/21-110)
Sec. 21-110. Published notice of annual application for
judgment and sale; delinquent taxes. At any time after all
taxes have become delinquent in any year, the Collector shall
publish an advertisement, giving notice of the intended
application for judgment and tax sale of the delinquent
properties. The advertisement may include the street address
on file with the county collector, if available, and shall
include the PIN number of each delinquent property. If the
county has provided notice to the Collector of its intent to
acquire property offered at an annual tax sale in the manner
described in subsection (b) of Section 21-190, the
advertisement shall indicate which properties the county
intends to acquire next to the PIN number and address, if any,
listed in the advertisement. If the county has indicated its
intent or is required to acquire all properties offered at
such a tax sale in accordance with subsection (b) or (c) of
Section 21-190, a sentence indicating such shall precede the
list of PIN numbers and addresses in the advertisement in
clear, bolded language. Except as provided below, the
advertisement shall be in a newspaper published in the
township or road district in which the properties are located.
If there is no newspaper published in the township or road
district, then the notice shall be published in some newspaper
in the same county as the township or road district, to be

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selected by the county collector. When the property is in a
city with more than 1,000,000 inhabitants, the advertisement
may be in any newspaper published in the same county. When the
property is in an incorporated town which has superseded a
civil township, the advertisement shall be in a newspaper
published in the incorporated town or if there is no such
newspaper, then in a newspaper published in the county.
The provisions of this Section relating to the time when
the Collector shall advertise intended application for
judgment for sale are subject to modification by the governing
authority of a county in accordance with the provisions of
subsection (c) of Section 21-40.
(Source: P.A. 97-557, eff. 7-1-12.)
(35 ILCS 200/21-115)
Sec. 21-115. Times of publication of notice. The
advertisement shall be published once at least 10 days before
the day on which judgment is to be applied for, and shall
contain a list of the delinquent properties upon which the
taxes or any part thereof remain due and unpaid, the names of
owners, if known, the total amount due, and the year or years
for which they are due, and whether the county intends to
purchase the property in accordance with subsections (b) or
(c) of Section 21-190 if a judgment is entered against the
property. In counties of less than 3,000,000 inhabitants,
advertisement shall include notice of the registration

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requirement for persons bidding at the sale. Properties upon
which taxes have been paid in full under protest shall not be
included in the list.
The collector shall give notice that he or she will apply
to the circuit court on a specified day for judgment against
the properties for the taxes, and costs, and for an order for a
tax sale of to sell the properties for the satisfaction of the
amount due.
The collector shall also give notice of a date within the
next 5 business days after the date of application on which all
the properties for the tax sale of which an order is made will
either sold to the county in accordance with subsections (b)
or (c) of Section 21-190, or be exposed to public tax sale at a
location within the county designated by the county collector,
for the amount of taxes, and cost due. The advertisement
published according to the provisions of this Section shall be
deemed to be sufficient notice of the intended application for
judgment and of a tax sale the sale of properties under the
order of the court. A county with fewer than 3,000,000
inhabitants may, by joint agreement, combine its tax sale with
the tax sale of one or more other contiguous counties; such a
joint tax sale shall be held at a location in one of the
participating counties. Notwithstanding the provisions of this
Section and Section 21-110, in the 10 years following the
completion of a general reassessment of property in any county
with 3,000,000 or more inhabitants, made under an order of the

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Department, the publication shall be made not sooner than 10
days nor more than 90 days after the date when all unpaid taxes
on property have become delinquent.
(Source: P.A. 101-379, eff. 1-1-20.)
(35 ILCS 200/21-160)
Sec. 21-160. Annual tax judgment, sale, redemption, and
forfeiture record. The collector shall transcribe into a
record prepared for that purpose, and known as the annual tax
judgment, tax sale, redemption and forfeiture record, the list
of delinquent properties. On or before the day on which
application for judgment is to be made, the record shall be
made out in numerical order and contain all the information
necessary to be recorded.
The record shall set forth the name of the owner, if known;
the description of the property; the year or years for which
the tax or, in counties with 3,000,000 or more inhabitants,
the tax or special assessments is due; the valuation on which
the tax is extended; the amount of the consolidated and other
taxes or in counties with 3,000,000 or more inhabitants, the
consolidated and other taxes and special assessments; the
costs; and the total amount of charges against the property.
The final record shall also be ruled in columns, to show in
counties with 3,000,000 or more inhabitants the withdrawal of
any special assessments from collection and in all counties to
show the amount paid before entry of judgment; the amount of

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judgment and a column for remarks; the amount paid before sale
and after entry of judgment; the amount of the sale; amount of
interest or penalty; amount of cost; amount forfeited to the
State; date of sale; acres or part sold; name of purchaser;
amount of sale and penalty; taxes of succeeding years;
interest and when paid, interest and cost; total amount of
redemption; date of redemption; when deed executed; by whom
redeemed; and a column for remarks or receipt of redemption
money.
The final record shall be kept in the office of the county
clerk.
(Source: P.A. 95-269, eff. 8-17-07.)
(35 ILCS 200/21-190)
Sec. 21-190. Entry of judgment for tax sale.
(a) If judgment is rendered against any property for any
tax or, in counties with 3,000,000 or more inhabitants, for
any tax or special assessment, the county collector shall,
after publishing a notice for sale in compliance with the
requirements of Sections 21-110, and 21-115, or 21-120,
proceed to conduct a tax sale offer the property for sale
pursuant to the judgment. However, in the case of an appeal
from the judgment, if the party, when filing notice of appeal
deposits with the county collector the amount of the judgment
and costs, the collector shall not conduct a tax sale sell the
property until the appeal is disposed of.

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(b) In counties with fewer than 3,000,000 inhabitants, a
county board may, in its discretion, submit to the Collector a
list of any properties for which an application for judgment
has been made pursuant to Section 21-155 of this Code. The
county's submission of this list shall be considered its offer
to purchase the property or properties included on this list
at the tax sale, pursuant to the County's authority in Section
21-90(a) of this Code, so long as a judgment and order for tax
sale is entered for the property in accordance with Sections
21-175 and 21-180 of this Code. Such list shall be submitted to
the county collector at least 10 days prior to the publication
of any notice for tax sale required in subsection (a) of this
Section and in compliance with Sections 21-110 and 21-115 and
21-120 of this Code.
(c) In counties with 3,000,000 or more inhabitants, for
the first three tax sales conducted after the effective date
of this Act, the county may exercise its authority in Section
21-90(a) of this Code and offer to purchase or otherwise
acquire for the total amount due all properties offered at a
tax sale conducted pursuant to a judgment and order for tax
sale issued in accordance with Sections 21-175 and 21-180 of
this Code. For the fourth tax sale and all subsequent tax sales
conducted after the effective date of this Act, the county
shall exercise its authority in Section subsection (a) of
Section 21-90 of this Code and offer to purchase or otherwise
acquire for the total amount due all properties offered at a

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tax sale conducted pursuant to a judgment and order for tax
sale issued in accordance with Sections 21-175 and 21-180 of
this Code.
(Source: P.A. 79-451; 88-455.)
(35 ILCS 200/21-205)
Sec. 21-205. Tax sale procedures.
(a) The collector, in person or by deputy, shall attend,
on the day and in the place specified in the notice for the tax
sale sale of property for taxes, and shall, between 9:00 a.m.
and 4:00 p.m., or later at the collector's discretion, proceed
to offer for sale, separately and in consecutive order, all
property in the list on which the taxes, special assessments,
interest or costs have not been paid. However, in any county
with 3,000,000 or more inhabitants, the offer for sale shall
be made between 8:00 a.m. and 8:00 p.m. The collector's office
shall be kept open during all hours in which the sale is in
progress. The tax sale shall be continued from day to day,
until all property in the delinquent list has been offered for
sale. However, any city, village or incorporated town
interested in the collection of any tax or special assessment,
may, in default of bidders, withdraw from collection the
special assessment levied against any property by the
corporate authorities of the city, village or incorporated
town. In case of a withdrawal, there shall be no sale of that
property on account of the delinquent special assessment

SB3940 - 19 - LRB104 17732 HLH 31163 b
thereon.
(b) Until January 1, 2013, in every tax sale of property
pursuant to the provisions of this Code, the collector may
employ any automated means that the collector deems
appropriate. Beginning on January 1, 2013, either (i) the
collector shall employ an automated bidding system that is
programmed to accept the lowest redemption price bid by an
eligible tax purchaser, subject to the penalty percentage
limitation set forth in Section 21-215, or (ii) all tax sales
shall be digitally recorded with video and audio. All bidders
are required to personally attend the tax sale and, if
automated means are used, all hardware and software used with
respect to those automated means must be certified by the
Department and re-certified by the Department every 5 years.
If the tax sales are digitally recorded and no automated
bidding system is used, then the recordings shall be
maintained by the collector for a period of at least 3 years
from the date of the tax sale. The changes made by this
amendatory Act of the 94th General Assembly are declarative of
existing law.
(b-5) For any annual tax sale conducted on or after the
effective date of this amendatory Act of the 102nd General
Assembly, each county collector in a county with 275,000 or
more inhabitants shall adopt a single bidder rule sufficient
to prohibit a tax purchaser from registering more than one
related bidding entity at the tax sale. The corporate

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authorities in any county with less than 275,000 inhabitants
may, by ordinance, allow the county collector of that county
to adopt such a single bidder rule. In any county that has
adopted a single bidder rule under this subsection (b-5), the
county treasurer shall include a representation and warranty
form in each registration package attesting to compliance with
the single bidder rule, except that the county may, by
ordinance, opt out of this representation and warranty form
requirement. A single bidder rule under this subsection may be
in the following form:
(1) A registered tax buying entity (principal) may
only have one registered buyer at the tax sale and may not
have a related bidding entity directly or indirectly
register as a buyer or participate in the tax sale. A
registered tax buying entity may not engage in any
multiple bidding strategy for the purpose of having more
than one related bidding entity submit bids at the tax
sale.
(2) A related bidding entity is defined as any
individual, corporation, partnership, joint venture,
limited liability company, business organization, or other
entity that has a shareholder, partner, principal,
officer, general partner, or other person or entity having
(i) an ownership interest in a bidding entity in common
with any other registered participant in the tax sale or
(ii) a common guarantor in connection with a source of

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financing with any other registered participant in the tax
sale. The determination of whether registered entities are
related so as to prohibit those entities from submitting
duplicate bids in violation of the single bidder rule is
at the sole and exclusive discretion of the county
treasurer or his or her designated representatives.
(c) County collectors may, when applicable, eject tax
bidders who disrupt the tax sale or use illegal bid practices.
(d) Any property to be acquired by a county in the manner
described in subsections (b) or (c) of Section 21-190 shall
not be offered for sale in the manner detailed in subsections
(a) through (c) of this Section. Instead, all such property
shall be sold to the county for the total amount due on the day
of the scheduled tax sale in whatever manner is deemed most
expedient and efficient by the collector's office. For any
properties acquired by the county as described in subsections
(b) or (c) of Section 21- 190 that are subsequently sold at a
tax deed auction in accordance with this Code, any amounts
generated in cash from such tax deed auction shall be
distributed to taxing districts in the manner described in
Sections 21-90(c) and 22-42(3).
(Source: P.A. 102-519, eff. 8-20-21.)
(35 ILCS 200/21-215)
Sec. 21-215. Penalty bids.
(a) Subject to subsection (b) of this Section, the The

SB3940 - 22 - LRB104 17732 HLH 31163 b
person at the sale offering to pay the amount due on each
property for the least penalty percentage shall be the
purchaser of that property. No bid shall be accepted for a
penalty exceeding 9% of the amount of the tax or special
assessment on property.
(b) Where the county offers to purchase property for the
amount due in accordance with subsections (b) and (c) of
Section 21-190, the county shall be the purchaser of the
property notwithstanding any other offer. Subject to a payment
plan implemented by the county clerk in accordance with
subsection (d) of Section 21-385, the penalty for any property
purchased by the county in this manner shall be 9% of the
amount of the tax or special assessment on property.
(Source: P.A. 102-363, eff. 1-1-22.)
(35 ILCS 200/21-225)
Sec. 21-225. Forfeited tax liens and certificates. Every
tax lien or certificate for property offered at public tax
sale, and not sold for want of bidders, unless it is released
from tax sale by the withdrawal from collection of a special
assessment levied thereon, shall be forfeited to the county,
as trustee for the taxing districts, and managed pursuant to
Section 21-90. Tax certificates are also forfeited to the
county in those circumstances described in subsection (d) of
Section 21-310 and subsection (f) of Section 22-40 of this
Code.

SB3940 - 23 - LRB104 17732 HLH 31163 b
(Source: P.A. 103-555, eff. 1-1-24.)
(35 ILCS 200/21-302 new)
Sec. 21-302. Payments of surplus equity.
(a) Any owner of property sold under any provision of this
Code who sustains loss or damage by reason of the issuance of a
deed at a tax deed auction shall have the right to recover
surplus equity which was lost in the property through an award
of indemnity as follows:
(1) For tax deeds ordered by the court prior to the
effective date of this Act, the claim for an indemnity
award shall be filed not later than two years from the date
the order directing the issuance of tax deed was entered,
or two years from the effective date of this Act,
whichever is earlier.
(2) For outstanding tax certificates issued prior to
the effective date of this Act, the claim for an indemnity
award shall be filed not later than two years from the date
the order directing the issuance of tax deed was entered.
(3) The indemnity award shall be limited to the fair
cash value of the property as of the date the tax deed was
issued less any mortgages or liens on the property. The
Court shall liberally construe this equitable entitlement
standard to provide compensation wherever, in the
discretion of the Court, the equities warrant the action.
(4) In determining the fair cash value of property

SB3940 - 24 - LRB104 17732 HLH 31163 b
less any mortgages or liens on the property, the fair cash
value shall be reduced by the principal amount of all
taxes paid by the tax purchaser or his or her assignee
before the issuance of the tax deed, or if the tax
certificate was acquired pursuant to Section 21-90, the
fair market value shall be reduced by the principal amount
of all taxes for the tax years included in the
certificate, plus the principal amount of subsequent,
forfeited, or sold taxes excluded from payment or
redemption under Section 20-40(a)(2)-(3) when the county
or its agent, as trustee pursuant to Section 21-90, is the
tax deed petitioner. The court, in its discretion, may
order the joinder of the mortgagee or lienholder as an
additional party to the indemnity action.
(b) The provisions of the Code of Civil Procedure shall
apply to proceedings under the petition, except that neither
the petitioner nor County Treasurer shall be entitled to trial
by jury on the issues presented in the petition.
(1) Any person claiming indemnity hereunder shall
petition the Court which ordered the tax deed to issue,
shall name the County Treasurer, as Trustee of the
indemnity fund, as defendant to the petition, and shall
ask that judgment be entered against the County Treasurer,
as Trustee, in the amount of the indemnity sought.
(2) The County Treasurer, as Trustee of the indemnity
fund, shall be subrogated to all parties in whose favor

SB3940 - 25 - LRB104 17732 HLH 31163 b
judgment may be rendered against him or her, and by third
party complaint may bring in as a defendant any person,
other than the tax deed grantee and its successors in
title, not a party to the action who is or may be liable to
him or her, as subrogee, for all or part of the
petitioner's claim against him or her.
(c) Any contract involving the proceeds of a judgment for
indemnity under this Section, between the tax deed grantee or
its successors in title and the indemnity petitioner or his or
her successors, shall be in writing. In any action brought
under Section 21-302, the Collector shall be entitled to
discovery regarding, but not limited to, the following:
(1) the identity of all persons beneficially
interested in the contract, directly or indirectly,
including at least the following information: the names
and addresses of any natural persons; the place of
incorporation of any corporation and the names and
addresses of its shareholders unless it is publicly held;
the names and addresses of all general and limited
partners of any partnership; the names and addresses of
all persons having an ownership interest in any entity
doing business under an assumed name, and the county in
which the assumed business name is registered; and the
nature and extent of the interest in the contract of each
person identified;
(2) the time period during which the contract was

SB3940 - 26 - LRB104 17732 HLH 31163 b
negotiated and agreed upon, from the date of the first
direct or indirect contact between any of the contracting
parties to the date of its execution;
(3) the name and address of each natural person who
took part in negotiating the contract, and the identity
and relationship of the party that the person represented
in the negotiations; and
(4) the existence of an agreement for payment of
attorney's fees by or on behalf of each party. Any
information disclosed during discovery may be subject to
protective order as deemed appropriate by the court. The
terms of the contract shall not be used as evidence of
value.
(35 ILCS 200/21-305)
Sec. 21-305. Payments from Indemnity Fund.
(a) Any owner of property sold under any provision of this
Code who sustains loss or damage by reason of the issuance of a
tax deed under Section 21-445 or 22-40 and who is barred or is
in any way precluded from bringing an action for the recovery
of the property shall have the right to indemnity for the loss
or damage sustained, limited as follows:
(1) An owner who resided on property that contained 4
or less dwelling units on the last day of the period of
redemption and who is equitably entitled to compensation
for the loss or damage sustained has the right to

SB3940 - 27 - LRB104 17732 HLH 31163 b
indemnity. An equitable indemnity award shall be limited
to the fair cash value of the property as of the date the
tax deed was issued less any mortgages or liens on the
property, and the award will not exceed $99,000. The Court
shall liberally construe this equitable entitlement
standard to provide compensation wherever, in the
discretion of the Court, the equities warrant the action.
An owner of a property that contained 4 or less
dwelling units who requests an award in excess of $99,000
must prove that the loss of his or her property was not
attributable to his or her own fault or negligence before
an award in excess of $99,000 will be granted.
(2) An owner who sustains the loss or damage of any
property occasioned by reason of the issuance of a tax
deed, without fault or negligence of his or her own, has
the right to indemnity limited to the fair cash value of
the property less any mortgages or liens on the property.
In determining the existence of fault or negligence, the
court shall consider whether the owner exercised ordinary
reasonable diligence under all of the relevant
circumstances.
(3) In determining the fair cash value of property
less any mortgages or liens on the property, the fair cash
value shall be reduced by the principal amount of all
taxes paid by the tax purchaser or his or her assignee
before the issuance of the tax deed, or if the tax

SB3940 - 28 - LRB104 17732 HLH 31163 b
certificate was acquired pursuant to Section 21-90, the
fair cash value shall be reduced by the principal amount
of all taxes for the tax years included in the
certificate, plus the principal amount of subsequent,
forfeited, or sold taxes excluded from the payment or
redemption requirement of Section 22-40(a) when the county
or its agent is the tax deed petitioner.
(4) If an award made under paragraph (1) or (2) is
subject to a reduction by the amount of an outstanding
mortgage or lien on the property, other than the principal
amount of all taxes paid by the tax purchaser or his or her
assignee before the issuance of the tax deed and the
petitioner would be personally liable to the mortgagee or
lienholder for all or part of that reduction amount, the
court shall order an additional indemnity award to be paid
directly to the mortgagee or lienholder sufficient to
discharge the petitioner's personal liability. The court,
in its discretion, may order the joinder of the mortgagee
or lienholder as an additional party to the indemnity
action.
(b) Indemnity fund; subrogation.
(1) Any person claiming indemnity hereunder shall
petition the Court which ordered the tax deed to issue,
shall name the County Treasurer, as Trustee of the
indemnity fund, as defendant to the petition, and shall
ask that judgment be entered against the County Treasurer,

SB3940 - 29 - LRB104 17732 HLH 31163 b
as Trustee, in the amount of the indemnity sought. The
provisions of the Civil Practice Law shall apply to
proceedings under the petition, except that neither the
petitioner nor County Treasurer shall be entitled to trial
by jury on the issues presented in the petition. The Court
shall liberally construe this Section to provide
compensation wherever in the discretion of the Court the
equities warrant such action.
(2) The County Treasurer, as Trustee of the indemnity
fund, shall be subrogated to all parties in whose favor
judgment may be rendered against him or her, and by third
party complaint may bring in as a defendant any person,
other than the tax deed grantee and its successors in
title, not a party to the action who is or may be liable to
him or her, as subrogee, for all or part of the
petitioner's claim against him or her.
(c) Any contract involving the proceeds of a judgment for
indemnity under this Section, between the tax deed grantee or
its successors in title and the indemnity petitioner or his or
her successors, shall be in writing. In any action brought
under Section 21-305, the Collector shall be entitled to
discovery regarding, but not limited to, the following:
(1) the identity of all persons beneficially
interested in the contract, directly or indirectly,
including at least the following information: the names
and addresses of any natural persons; the place of

SB3940 - 30 - LRB104 17732 HLH 31163 b
incorporation of any corporation and the names and
addresses of its shareholders unless it is publicly held;
the names and addresses of all general and limited
partners of any partnership; the names and addresses of
all persons having an ownership interest in any entity
doing business under an assumed name, and the county in
which the assumed business name is registered; and the
nature and extent of the interest in the contract of each
person identified;
(2) the time period during which the contract was
negotiated and agreed upon, from the date of the first
direct or indirect contact between any of the contracting
parties to the date of its execution;
(3) the name and address of each natural person who
took part in negotiating the contract, and the identity
and relationship of the party that the person represented
in the negotiations; and
(4) the existence of an agreement for payment of
attorney's fees by or on behalf of each party.
Any information disclosed during discovery may be subject
to protective order as deemed appropriate by the court. The
terms of the contract shall not be used as evidence of value.
(d) A petition of indemnity under this Section must be
filed within 10 years after the date the tax deed was issued.
(Source: P.A. 97-557, eff. 7-1-12.)

SB3940 - 31 - LRB104 17732 HLH 31163 b
(35 ILCS 200/21-350)
Sec. 21-350. Period of redemption. Property sold at a tax
sale under this Code may be redeemed at any time before the
expiration of 2.5 years from the date of sale, and in counties
with 3,000,000 or more inhabitants before the expiration of 3
years from the date of sale, except that:
(a) If on the date of sale the property is vacant
non-farm property or property containing an improvement
consisting of a structure or structures with 7 or more
residential units or that is commercial or industrial
property, it may be redeemed at any time before the
expiration of 1 year from the date of the tax sale.
(a-5) If on the date of the tax sale the property sold
is occupied residential property containing a structure or
structures with 6 or fewer residential units, the property
may be redeemed after 3 years but before the court orders
the property sold at a judicial tax deed auction.
(b) (Blank).
(c) If the period of redemption has been extended by
the certificate holder as provided in Section 21-385 or
Section 22-5, the property may be redeemed on or before
the extended redemption date. The changes made to this
Section by this amendatory Act of the 103rd General
Assembly apply to matters concerning tax certificates
issued on or after January 1, 2024.
(Source: P.A. 103-555, eff. 1-1-24.)

SB3940 - 32 - LRB104 17732 HLH 31163 b
(35 ILCS 200/22-5)
Sec. 22-5. Notice of sale and redemption rights. In order
to be entitled to an order for a judicial tax deed auction and
a tax deed, within 4 months and 15 days after any tax sale held
under this Code, the purchaser or his or her assignee, and the
county for all tax liens or certificates it acquires pursuant
to Section 21-90 of this Code forfeited certificates from the
annual sale, shall deliver to the county clerk a notice to be
given to the party in whose name the taxes are last assessed as
shown by the most recent tax collector's warrant books, in at
least 10 point type in the following form completely filled
in:
TAKE NOTICE
County of ...........................................
Date Premises Sold or Forfeited .....................
Certificate No. .....................................
Sold for General Taxes of (year) ....................
Sold for Special Assessment of (Municipality)
and special assessment number .......................
Warrant No. ............... Inst. No. .................
THIS PROPERTY HAS BEEN SOLD AT A TAX SALE FOR
DELINQUENT TAXES
Property Address (as identified on the most recent tax bill,
if available) ....
Legal Description or Property Index No. ..........

SB3940 - 33 - LRB104 17732 HLH 31163 b
..........
..............................
This notice is to advise you that if you do not redeem by
paying your tax debt before the deadline, a petition may be
filed in court for a tax deed which will transfer title and the
right to possession of the above-referenced property
("Property"). If you are a homeowner, this may eventually
result in eviction from your home if redemption is not made on
or before the redemption deadline.
Your right to redeem will expire on ..........
To request determine the redemption deadline and the total
amount you must pay to redeem the sold taxes, you must
immediately contact the County Clerk at the address, phone
number, or email address below. Check with the County Clerk
for the exact amount you owe before redeeming. Payment must be
made by certified check, cashier's check, money order, or in
cash to the County Clerk.
YOU ARE URGED TO REDEEM IMMEDIATELY TO
PREVENT LOSS OF PROPERTY AND ADDITIONAL COSTS
The longer you wait, the more expensive it will be to
redeem and prevent the loss of your property. Interest will
continue to accrue on the total amount owed until the property
is redeemed, and you may owe additional attorney or filing
fees if the certificate holder chooses to pursue an order for a
tax deed auction to compel the sale or transfer of the deed to
the property.

SB3940 - 34 - LRB104 17732 HLH 31163 b
Property sold under the Property Tax Code may be redeemed
by any owner or person holding an interest in the Property at
any time before the following deadlines (based on property
classification as of the Date of Sale):
You must redeem your taxes within one year of the Date of
Sale for the following classifications:
(1) vacant non-farm property;
(2) property containing an improvement consisting of a
structure or structures with 7 or more residential units;
and
(3) commercial or industrial property.
You must redeem your taxes within 2 1/2 years of the Date
of Sale for the following classifications:
(1) all residential property with less than 6 units;
and
(2) all other property not covered by the 1-year
redemption period outlined above.
Redemption deadlines may have been extended by the
certificate holder or pursuant to Illinois law.
To confirm the amount you will need to redeem redemption
deadline, you must contact the County Clerk at the address,
telephone number, or email address below. Redemption can be
made at any time on or before .... by applying to the County
Clerk of .... County, Illinois at the Office of the County
Clerk in ...., Illinois. The address, telephone number, and
email address for the County Clerk is as follows:

SB3940 - 35 - LRB104 17732 HLH 31163 b
ADDRESS:............................
TELEPHONE AND/OR EMAIL ADDRESS:..........................
For further information about the redemption deadline,
redemption amount, or payment process, please contact the
County Clerk.
Housing Counselor Information: If you would like housing
counseling or assistance, you can contact the U.S. Department
of Housing and Urban Development (HUD) for a list of
homeownership counselors or counseling organizations in your
area.
In counties with 3,000,000 or more inhabitants, the
redemption notice shall contain a provision in Spanish,
Polish, and Mandarin Chinese, stating that the redemption
notice affects important legal rights and should be translated
immediately.
Within 10 days after receipt of said notice, the county
clerk shall mail to the addresses supplied by the purchaser or
assignee, by registered or certified mail, copies of said
notice to the party in whose name the taxes are last assessed
as shown by the most recent tax collector's warrant books.
With the exception of a county or taxing district acquiring
certificates pursuant to Section 21-90 and 21-260, all
purchasers or assignees shall pay to the clerk postage plus
the sum of $10. The clerk shall write or stamp the date of

SB3940 - 36 - LRB104 17732 HLH 31163 b
receiving the notices upon the copies of the notices, and
retain one copy.
All With the exception of forfeited tax liens or
certificates held by the county pursuant to Section 21-90, all
redemption periods shall begin on the date of the tax sale. For
forfeited tax liens or certificates held by the county
pursuant to Section 21-90, the county may cure any defect in a
notice, or failure to send a notice as required by this
Section, by delivering to the county clerk a notice to be given
to the party in whose name the taxes are last assessed as shown
by the most recent tax collector's warrant books. The
redemption period begins on the date the county delivered the
corrected notice to the clerk, if such extension is otherwise
permitted by law.
The changes to this Section made by this amendatory Act of
the 97th General Assembly apply only to tax sales that occur on
or after the effective date of this amendatory Act of the 97th
General Assembly.
The changes made to this Section by this amendatory Act of
the 103rd General Assembly apply to matters concerning tax
certificates issued on or after the effective date of this
amendatory Act of the 103rd General Assembly.
(Source: P.A. 102-815, eff. 5-13-22; 103-555, eff. 1-1-24.)
(35 ILCS 200/22-10)
Sec. 22-10. Notice of expiration of period of redemption.

SB3940 - 37 - LRB104 17732 HLH 31163 b
A purchaser or assignee shall not be entitled to request an
order for a judicial tax deed auction and a tax deed to the
property sold at an annual tax sale unless, not less than 3
months nor more than 6 months prior to the expiration of the
period of redemption, he or she gives notice of the sale and
the date of expiration of the period of redemption to the
owners, occupants, the municipality in which the subject
property lies or county if the property lies outside municipal
corporate boundaries, and interested parties interested in the
property, including any mortgagee of record, as provided
below. For counties or taxing districts holding certificates
pursuant to Section 21-90, the date of expiration of the
period of redemption shall be designated by the county or
taxing district in its petition for tax deed and identified in
the notice below, which shall be filed with the county clerk.
The Notice to be given to the parties shall be in at least
10-point type in the following form completely filled in:
TAX DEED NO. .................... FILED ....................
TAKE NOTICE
County of ...........................................
Date Premises Sold or Forfeited .....................
Certificate No. .....................................
Sold or Forfeited for General Taxes of (year) .......
Sold for Special Assessment of (Municipality)
and special assessment number .......................
Warrant No. ................ Inst. No. .................

SB3940 - 38 - LRB104 17732 HLH 31163 b
THIS PROPERTY HAS BEEN SOLD AT A TAX SALE FOR
DELINQUENT TAXES
Property Address (as identified on the most recent tax bill,
if available) ....
Legal Description or Property Index No. ..........
..........
..............................
This notice is to advise you that the above property has
been sold for delinquent taxes at a tax sale and that the
period of redemption from the sale will expire on ......
......
Check with the county clerk as to the exact amount you owe
before redeeming.
This notice is also to advise you that a petition has been
filed in the Circuit Court seeking an order for judicial tax
deed auction and for a tax deed which will transfer title and
the right to possession of this property if redemption is not
made on or before .......................................
If you are a homeowner, this may eventually result in
eviction from your home. This matter is set for hearing in the
Circuit Court of this county in ...., Illinois on .....
You may be present at this hearing but your right to redeem
will already have expired at that time.
You may file a response to the petition or attend the
hearing and present your case to the court. However, if you do
not redeem at or before the hearing, and if the court finds

SB3940 - 39 - LRB104 17732 HLH 31163 b
that the petitioner has complied with all notice and other
proper steps required to seek an order for judicial tax deed
auction, the court will still enter an order that your right to
redeem has expired, all other interested parties have been
provided proper notice and their interests have been resolved
or extinguished, and the deed to the property is to be offered
for sale at a public auction. If you are the current owner of
the property, you may be entitled to receive any surplus from
the public tax deed auction after the delinquent taxes and
other costs are paid. If there is a surplus, you will receive
notice about how to claim the funds.
YOU ARE URGED TO REDEEM IMMEDIATELY
TO PREVENT LOSS OF PROPERTY AND ADDITIONAL COSTS
Redemption can be made at any time on or before .... by
applying to the County Clerk of ...., County, Illinois at the
Office of the County Clerk in ...., Illinois.
For further information contact the County Clerk
ADDRESS:....................
TELEPHONE AND/OR EMAIL ADDRESS:..................
..........................
Purchaser or Assignee.
Dated (insert date).
Housing Counselor Information: If you would like housing
counseling or assistance, you can contact the U.S. Department
of Housing and Urban Development (HUD) for a list of

SB3940 - 40 - LRB104 17732 HLH 31163 b
homeownership counselors or counseling organizations in your
area.
In counties with 3,000,000 or more inhabitants, the notice
shall contain a provision in the Spanish, Polish, and Mandarin
Chinese, stating that the notice affects important legal
rights and should be translated immediately. In counties with
3,000,000 or more inhabitants, the notice shall also state the
address, room number, and time at which the matter is set for
hearing.
The changes to this Section made by Public Act 97-557
apply only to matters in which a petition for tax deed is filed
on or after July 1, 2012 (the effective date of Public Act
97-557).
The changes to this Section made by Public Act 102-1003
apply to matters in which a petition for tax deed is filed on
or after May 27, 2022 (the effective date of Public Act
102-1003). Failure of any party or any public official to
comply with the changes made to this Section by Public Act
102-528 does not invalidate any tax deed issued prior to May
27, 2022 (the effective date of Public Act 102-1003).
The changes made to this Section by this amendatory Act of
the 103rd General Assembly apply to matters concerning tax
certificates issued on or after the effective date of this
amendatory Act of the 103rd General Assembly.
(Source: P.A. 102-528, eff. 1-1-22; 102-813, eff. 5-13-22;

SB3940 - 41 - LRB104 17732 HLH 31163 b
102-1003, eff. 5-27-22; 103-154, eff. 6-30-23; 103-555, eff.
1-1-24.)
(35 ILCS 200/22-40)
Sec. 22-40. Issuance of order authorizing judicial tax
deed auction, confirmation and order for tax deed; possession.
(a) To obtain an order authorizing a judicial tax deed
auction and for issuance of tax deed, the petitioner must
provide sufficient evidence that:
(1) the redemption period has expired and the property
has not been redeemed;
(2) all taxes and special assessments which became due
and payable subsequent to the sale have been paid, unless
the county or its agent, as trustee pursuant to Section
21-90, is the petitioner;
(3) all forfeitures and sales which occur subsequent
to the sale are paid or redeemed, unless the county or its
agent, as trustee pursuant to Section 21-90, is the
petitioner;
(4) the notices required by law have been given, and
all advancements of public funds under the police power
made by a county, city, village, or town under Section
22-35 have been paid; and
(5) the petitioner has complied with all the
provisions of law entitling him or her to a deed.
Upon receipt of sufficient evidence of the requirements

SB3940 - 42 - LRB104 17732 HLH 31163 b
under this subsection (a), the court shall find that the
petitioner complied with those requirements and shall enter an
order authorizing a judicial tax deed auction or an order
authorizing issuance of a tax deed to a county trustee
pursuant to Section 21-90, subject to the requirements of this
Section, or subject to the requirements in Section 21-90
directing the county clerk, on the production of the tax
certificate and a certified copy of the order, to issue to the
purchaser or its assignee a tax deed. The court shall insist on
strict compliance with Sections Section 22-10 through 22-25.
Prior to the entry of an order under this Section directing the
issuance of a tax deed, the petitioner shall furnish the court
with a report of proceedings of the evidence received on the
application for tax deed. Petitioner shall also furnish to the
court a statement of redemption from the county clerk showing
the total taxes, penalties, and costs that were required to be
paid to redeem the tax sale as specified in the notice required
under Section 22-10. The petitioner for tax deed must file a
statement of, if applicable, (a) all taxes it has paid or
redeemed for the property, (b) the costs paid for court
reporter and transcript services in counties of 3,000,000 or
more inhabitants, or in counties with less than 3,000,000
inhabitants, a submission of a report of proceedings to the
court, (c) the fees paid to the clerk for the estimate of
redemption, (d) all payments made for municipal advancements
required by Section 22-35, and (e) costs incurred pursuant to

SB3940 - 43 - LRB104 17732 HLH 31163 b
Section 21-90(c). The total of the amount shown on the
statement of redemption plus (a) through (e) above, or portion
thereof, plus a fee not to exceed 50 percent of the then-
allowable foreclosure attorney fees for Illinois as published
by Fannie Mae, plus the cost of publication of the judicial tax
deed auction, shall be identified as the tax deed judgment
amount. The tax deed judgment amount shall accrue interest at
0.75% per month, or portion thereof, from the date of the
judgment until the date of judicial tax deed auction. If the
judicial tax deed auction is not concluded within 120 days
after date of the judgment, the judgment shall accrue interest
after the 120-day period only if any delay in concluding the
auction is the result of legal action taken by the owner or
other interested party before issuance of the tax deed. The
order for judicial tax deed auction shall include such terms
and conditions of the auction as specified by the court and the
report of proceedings shall be filed and made a part of the
court record.
(b) Except as provided in subsection (e) of this Section,
if taxes for years prior to the year or years sold are or
become delinquent subsequent to the date of sale, the court
shall find that the lien of those delinquent taxes has been or
will be merged into the tax deed grantee's title if the court
determines that the tax deed grantee or any prior holder of the
certificate of purchase, or any person or entity under common
ownership or control with any such grantee or prior holder of

SB3940 - 44 - LRB104 17732 HLH 31163 b
the certificate of purchase, was at no time the holder of any
certificate of purchase for the years sought to be merged. If
delinquent taxes are merged into the tax deed pursuant to this
subsection, the court shall enter an order declaring which
specific taxes have been or will be merged into the tax deed
title and directing the county treasurer and county clerk to
reflect that declaration in the warrant and judgment records;
provided, that no such order shall be effective until a tax
deed has been issued and timely recorded. Nothing contained in
this Section shall relieve any owner liable for delinquent
property taxes under this Code from the payment of the taxes
that have been merged into the title upon issuance of the tax
deed.
(c) The county clerk is entitled to a fee of $10 in
counties of 3,000,000 or more inhabitants and $5 in counties
with less than 3,000,000 inhabitants for the issuance of the
tax deed, with the exception of deeds issued to the county
pursuant to its authority under Section 21-90. The clerk may
not include in a tax deed more than one property as listed,
assessed and sold in one description, except in cases where
several properties are owned by one person. The fee paid to the
county clerk for the issuance of the tax deed shall be
accompanied by a $300 indemnity fund fee in counties of
3,000,000 or more inhabitants and a $100 indemnity fund fee in
counties with less than 3,000,000 inhabitants, with the
exception of deeds issued to the county pursuant to its

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authority under Section 21-90. All fees received under this
subsection shall be paid by the county clerk to the county
treasurer of the county in which the land is situated for the
purpose of funding the county's indemnity fund established
under Section 21-295.
Upon application, the court shall enter an order to place
the tax deed grantee or the grantee's successor in interest in
possession of the property and may enter orders and grant
relief as may be necessary or desirable to maintain the
grantee or the grantee's successor in interest in possession.
(d) The court shall retain jurisdiction to enter orders
pursuant to subsections (b) and (c) of this Section. Public
Act 92-223 and Public Act 95-477 shall be construed as being
declarative of existing law and not as a new enactment.
(e) Prior to the issuance of any order for judicial tax
deed auction under this Section, the petitioner must redeem
all taxes and special assessments on the property that are
delinquent after the date of its tax sale subject to a pending
tax petition filed by a county or its assignee pursuant to
Section 21-90.
(e-5) Following the expiration of the period of
redemption, the petitioner's payment of (i) any subsequent tax
and special assessment and (ii) any redemption of any sale of
subsequent taxes or forfeiture shall be accompanied by an
indemnity fund fee of 10% of the principal taxes and interest
paid by the petitioner under this Section. All fees received

SB3940 - 46 - LRB104 17732 HLH 31163 b
under this subsection shall be paid by the collector and
county clerk to the county treasurer of the county in which the
land is situated for the purpose of funding the county's
indemnity fund established by Section 21-295. No fees incurred
under this subsection shall be posted to the subject tax sale
pursuant to Section 21-355.
(f) If, for any reason, a purchaser fails to obtain an
order for judicial tax deed auction or for tax deed within the
required time period and no sale in error was granted or
redemption paid, then the certificate shall be forfeited to
the county, as trustee, pursuant to Section 21-90.
(g) Judicial Tax Deed Auction. Except as provided in
Section 21-90, upon entry of an order requiring a judicial tax
deed auction under subsection (a) of this Section, the
property shall be offered for sale by public auction within
120 days after date of the order and sold to the highest bidder
at such an auction in accordance with the Section 22-42 and
subject to additional requirements set by the court's order.
(Source: P.A. 103-555, eff. 1-1-24; 104-417, eff. 8-15-25.)
(35 ILCS 200/22-42 new)
Sec. 22-42. Judicial tax deed auction and procedures.
(a) Notice of Tax Deed Auction. The sheriff, or duly
appointed private selling officer, shall give notice of the
auction with the following information:
(1) the Property Identification Number and Address

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listed on the most recent tax bill;
(2) the time and place of the auction including:
whether the auction will take place online, in person, or
both; and the website where the online bidding may take
place, if applicable;
(3) the terms of the auction; and
(4) the amount of the tax deed judgment amount
provided in Section 22-40.
The Notice of Tax Deed Auction shall be in clear and
concise language, together with a notice in Spanish, Polish,
and Mandarin Chinese, stating that the notice affects
important legal rights and should be translated immediately.
The Notice of Tax Deed Auction shall be mailed via first class
mail to all interested parties, and via first class mail and
certified mail to the owner of the property, at the address at
which service of the Section 22-10 Take Notice was attempted
and to any parties who have appeared in the proceeding. The
notice shall include a sworn certificate of service signed by
the party sending the notice attesting to the fact that the
notice of auction was placed in the mail at least 10 calendar
days prior to the date of the auction.
The Notice of Tax Deed Auction shall be published at least
3 consecutive calendar weeks (Sunday through Saturday), once
in each week, the first such notice to be published not more
than 45 days prior to the auction, the last such notice to be
published not less than 7 days prior to the auction. If the

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property is located in a municipality in a county with less
than 3,000,000 inhabitants, the purchaser or his or her
assignee shall also publish a notice as to the owner or
interested party, in some newspaper published in the
municipality, and such other publications as may be further
ordered by the court. If the petitioner cannot identify a
newspaper published in the municipality, or if the property is
located in a county with 3,000,000 or more inhabitants, the
notice shall be published in a newspaper published within the
county, and such other publications as may be further ordered
by the court. If no newspaper is published in the county, then
the notice shall be published in the newspaper that is
published nearest the county seat of the county in which the
property is located and such other publications as may be
further ordered by the court. The publication shall include
all information included in the notice sent pursuant to this
Section.
(b) Minimum Bid. The selling officer shall start all
bidding with a minimum bid equal to (1) the tax deed judgment
amount plus interest at the rate of 0.75% per month, or portion
thereof, for each month since the date of judgment, except as
provided in Section 22-40, (2) the cost for the publication of
the judicial sale required in this Section, and (3) the costs
of the selling officer. The selling officer shall proceed to a
public tax deed auction, offer the real estate for sale, and
sell the real estate to the highest bidder. If no bidder is

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willing to pay the minimum bid, the petitioner shall be the
winning bidder and entitled to a tax deed, and it shall be
conclusively presumed that there is no surplus equity in the
property.
(c) Credit Bid for Petitioner. At the auction under this
Section, the person conducting the auction shall enter a bid
in favor of the petitioner in the amount of the minimum bid set
forth above. Nothing in this Section shall be construed to
prevent the petitioner from bidding at the public auction.
However, if the petitioner is the winning bidder, the holder
must pay cash for the difference between the winning bid and
the minimum bid, plus any applicable costs or fees that may be
attached to the winning bid.
(d) Receipt upon Judicial Tax Deed Auction. Upon and at
the conclusion of the judicial tax deed auction, the person
conducting the auction shall give to the purchaser a receipt
of sale. The receipt shall describe the real estate purchased
and shall show the amount bid, the total amount paid to date,
and the amount still to be paid therefor. An additional
receipt shall be given at the time of each subsequent payment.
Any purchaser who fails to complete the sale for failure to
make full payment shall forfeit to the county indemnity fund
any deposit already made, and the court shall order a new
auction of the property.
(e) Certificate of Tax Deed Auction. Upon payment in full
of the amount bid, the sheriff or duly appointed selling

SB3940 - 50 - LRB104 17732 HLH 31163 b
officer conducting the sale shall issue, in duplicate, and
give to the purchaser a certificate of judicial tax deed
auction. The certificate of judicial tax deed auction shall be
in a recordable form, describe the real estate purchased,
indicate the date and place of sale and show the amount paid
therefor. The certificate of tax deed sale shall further
indicate that it is subject to confirmation by the court. The
certificate of sale shall be freely assignable by endorsement
thereon.
(f) To the extent that the winning bid exceeds the minimum
bid, upon the expiration of 30 days following confirmation of
the sale the selling officer shall deposit the surplus funds
with the treasurer of the county in which the subject property
lies and provide the treasurer with the parties and mailing
addresses to which all Take Notices were sent pursuant to
Section 22-10. The treasurer shall send a notice to all
parties sent the Section 22-10 Take Notice, stating that the
owner at the time of the sale is entitled to a distribution of
surplus proceeds and may file a claim to recover the surplus
with the treasurer of the county.
(g) Confirmation of sale; Order for Issuance of Tax Deed.
(1) The sheriff or selling officer conducting the sale
shall promptly make a report to the court that issued the
order authorizing the judicial tax deed auction, which
report shall include a copy of all receipts and, if any,
certificate of judicial tax deed sale.

SB3940 - 51 - LRB104 17732 HLH 31163 b
(2) Upon motion and notice in accordance with court
rules applicable to motions generally, which motion shall
not be made prior to sale, the court shall conduct a
hearing to confirm the sale. Unless the court finds that a
notice required in this Section was not issued or the sale
was not conducted in accordance with the order for
judicial tax deed auction, the court shall enter an order
(a) confirming the judicial tax deed auction sale, (b)
directing the county clerk to issue a tax deed in the name
of the holder of the certificate of judicial tax deed
auction sale once presented with a certified copy of the
confirmation order and original certificate of judicial
tax deed auction sale, and (c) directing the selling
officer to pay to the holder of the tax certificate the
amount of the credit bid upon surrender of the tax
certificate, and to pay the selling officer its fees. The
order for issuance of tax deed shall contain the name,
address, and telephone number of the holder of the
certificate of judicial tax deed auction sale for the
clerk to confirm the identity of the tax deed grantee.
(3) Unless the tax certificate was forfeited to the
county in the manner described in Section 21-225 of this
Code, if the county is the holder of the tax certificate
for property sold at a judicial tax deed auction in
accordance with this Section, any proceeds of any such
sale shall be distributed to the taxing districts in

SB3940 - 52 - LRB104 17732 HLH 31163 b
proportion to their respective interests therein.
Notwithstanding the preceding, any distribution to the
taxing districts shall be reduced by the following: all
costs incurred by either the county, the court, or the
selling officer associated with the sale of the property.
Any surplus amount to be held by the county treasurer and
distributed to former owners in accordance with paragraph
(5) of this Section shall be excluded from distributions
to taxing districts.
(4) If any tax deed auction sale fails to comply with
the requirements in this Section, any party may, by motion
supported by affidavit made prior to confirmation of such
sale, request that the court which entered the judgment
set aside the judicial tax deed auction sale. Any such
party shall guarantee or secure by bond a bid equal to the
successful bid at the judicial tax deed auction. No
guarantee or bond shall be required if the property is
residential and the party seeking to set aside the sale is
the owner-occupant of the property at the time the motion
is filed. If the court denies confirmation of the judicial
tax deed auction sale, it shall order a new judicial tax
deed auction. Any subsequent auction is subject to the
same notice requirement as the original auction.
(5) No sale under this Section shall be held invalid
or be set aside because of any immaterial or insignificant
defect in the notice thereof or in the publication of the

SB3940 - 53 - LRB104 17732 HLH 31163 b
same, or in the proceedings of the officer conducting the
sale.
(h) Notice of Surplus Proceeds. Within 60 days following
the deposit of surplus funds with the treasurer of the county,
the treasurer shall send notice to all parties to which the
Section 22-10 Take Notice was sent, stating that the owner or
owners of the property at the time of the sale may submit a
claim for the surplus funds to the county treasurer or the
circuit court within two years of the date on the notice.
(i) Upon receipt of a claim for surplus proceeds, the
county treasurer, being satisfied of the facts in the case,
shall distribute the surplus proceeds to the proper claimant.
When the county treasurer is unable to determine the proper
claimant, the county treasurer shall file a motion with the
circuit court hearing the underlying tax case, requesting that
the court determine whether an interested party is the owner
of record entitled to a disbursement of surplus proceeds.
Within 30 days following the filing of the motion, the court
hearing the underlying tax case shall set a hearing to
determine whether an interested party is the owner of record
entitled to a disbursement of surplus proceeds. All interested
parties in the underlying case shall be notified by the county
treasurer. Any party claiming to have an ownership interest in
the parcel at the time of the issuance of tax deed may present
evidence of ownership and request a disbursement of any or all
surplus proceeds. The court shall issue an order directing the

SB3940 - 54 - LRB104 17732 HLH 31163 b
treasurer to disburse a specific amount of surplus proceeds to
specific parties, with sufficient personally identifiable
information to accurately identify the parties entitled to
disbursement.
(j) Upon filing of a motion by a party claiming to be the
owner of the property at the time of sale, within 30 days
following the filing of the motion, the court hearing the
underlying tax case shall set a hearing to determine whether
an interested party is the owner entitled to a disbursement of
surplus proceeds. All interested parties in the underlying
case shall be notified by the movant. Any party claiming to be
the owner of the property at the time of sale may present
evidence of ownership and request a disbursement of any or all
surplus proceeds. The court shall issue an order directing the
treasurer to disburse a specific amount of surplus proceeds to
specific parties, with sufficient personally identifiable
information to accurately identify the parties entitled to
disbursement.
(k) Surplus funds that have not been claimed within 3
years following the date on the county treasurer's notice in
accordance with subsection (h) of Section 22-42(h) shall be
disposed of pursuant to the Revised Uniform Unclaimed Property
Act.
(35 ILCS 200/22-65)
Sec. 22-65. Form of deed. A tax deed executed by the county

SB3940 - 55 - LRB104 17732 HLH 31163 b
clerk under the official seal of the county shall be recorded
in the same manner as other conveyances of property, and vests
in the grantee, his or her heirs and assigns, the title of the
property therein described without further acknowledgment or
evidence of the conveyance. Tax Deeds issued under this
Section shall not require a municipal transfer stamp, or be
subject to any municipal real estate transfer taxes,
requirements, or certifications prior to recording. The
conveyance shall be substantially in the following form:
State of Illinois)
) ss.
County of .......)
At a tax deed auction public sale of property for the
nonpayment of taxes, held in the county above stated, on
(insert date), the following described property was sold:
(here place description of property conveyed). The property
not having been redeemed from the sale, and it appearing that
the holder of the certificate of purchase of the property has
complied with the laws of the State of Illinois necessary to
entitle (insert him, her or them) to a deed of the property: I
...., county clerk of the county of ...., in consideration of
the property and by virtue of the statutes of the State of
Illinois in such cases provided, grant and convey to ...., his
or her heirs and assigns forever, the property described
above.
Dated (insert date).

SB3940 - 56 - LRB104 17732 HLH 31163 b
Signature of .................. County Clerk
Seal of County of ...., Illinois
(Source: P.A. 91-357, eff. 7-29-99.)
Section 10. The Mortgage Rescue Fraud Act is amended by
changing Sections 5 and 30 as follows:
(765 ILCS 940/5)
Sec. 5. Definitions. As used in this Act:
"Distressed property" means residential real property
consisting of one to 6 family dwelling units that is in
foreclosure or at risk of loss due to nonpayment of taxes, or
whose owner is more than 30 days delinquent on any loan that is
secured by the property.
"Distressed property consultant" means any person who,
directly or indirectly, for compensation from the owner, makes
any solicitation, representation, or offer to perform or who,
for compensation from the owner, performs any service that the
person represents will in any manner do any of the following:
(1) stop or postpone the foreclosure sale or stop or
postpone the loss of the home due to nonpayment of taxes;
(2) obtain any forbearance from any beneficiary or
mortgagee, or relief with respect to a tax sale of the
property;
(3) assist the owner to exercise any right of
reinstatement or right of redemption;

SB3940 - 57 - LRB104 17732 HLH 31163 b
(4) obtain any extension of the period within which
the owner may reinstate the owner's rights with respect to
the property;
(5) obtain any waiver of an acceleration clause
contained in any promissory note or contract secured by a
mortgage on a distressed property or contained in the
mortgage;
(6) assist the owner in foreclosure, loan default, or
post-tax sale redemption period to obtain a loan or
advance of funds;
(7) avoid or ameliorate the impairment of the owner's
credit resulting from the recording of a notice of default
or the conduct of a foreclosure sale or tax sale; or
(8) save the owner's residence from foreclosure or
save the owner from loss of home due to nonpayment of
taxes.
A "distressed property consultant" does not include any of
the following:
(1) a person or the person's authorized agent acting
under the express authority or written approval of the
Department of Housing and Urban Development;
(2) a person who holds or is owed an obligation
secured by a lien on any distressed property, or a person
acting under the express authorization or written approval
of such person, when the person performs services in
connection with the obligation or lien, if the obligation

SB3940 - 58 - LRB104 17732 HLH 31163 b
or lien did not arise as the result of or as part of a
proposed distressed property conveyance;
(3) banks, savings banks, savings and loan
associations, credit unions, and insurance companies
organized, chartered, or holding a certificate of
authority to do business under the laws of this State or
any other state or under the laws of the United States;
(4) attorneys licensed in Illinois engaged in the
practice of law;
(5) a Department of Housing and Urban Development
approved mortgagee and any subsidiary or affiliate of
these persons or entities, and any agent or employee of
these persons or entities, while engaged in the business
of these persons or entities;
(6) a 501(c)(3) nonprofit agency or organization,
doing business for no less than 5 years, that offers
counseling or advice to an owner of a distressed property,
if they do not contract for services with for-profit
lenders or distressed property purchasers, or any person
who structures or plans such a transaction;
(7) (blank);
(8) licensees of the Consumer Installment Loan Act who
are authorized to make loans secured by real property; or
(9) licensees of the Real Estate License Act of 2000
when providing licensed activities.
"Distressed property purchaser" means any person who

SB3940 - 59 - LRB104 17732 HLH 31163 b
solicits an owner of distressed property and acquires any
interest in fee in a distressed property or a beneficial
interest in a trust holding title to a distressed property
while allowing the owner to possess, occupy, or retain any
present or future interest in fee in the property, or any
person who participates in a joint venture or joint enterprise
involving a distressed property conveyance. "Distressed
property purchaser" does not mean any person who acquires
distressed property at a short sale or any person acting in
participation with any person who acquires distressed property
at a short sale, if that person does not promise to convey an
interest in fee back to the owner or does not give the owner an
option to purchase the property at a later date.
"Distressed property conveyance" means a transaction in
which an owner of a distressed property transfers an interest
in fee in the distressed property or in which the holder of all
or some part of the beneficial interest in a trust holding
title to a distressed property transfers that interest; the
acquirer of the property allows the owner of the distressed
property to occupy the property; and the acquirer of the
property or a person acting in participation with the acquirer
of the property conveys or promises to convey an interest in
fee back to the owner or gives the owner an option to purchase
the property at a later date.
"Person" means any individual, partnership, corporation,
limited liability company, association, or other group or

SB3940 - 60 - LRB104 17732 HLH 31163 b
entity, however organized.
"Service" means, without limitation, any of the following:
(1) debt, budget, or financial counseling of any type;
(2) receiving money for the purpose of distributing it
to creditors in payment or partial payment of any
obligation secured by a lien on a distressed property;
(3) contacting creditors on behalf of an owner of a
residence that is distressed property;
(4) arranging or attempting to arrange for an
extension of the period within which the owner of a
distressed property may cure the owner's default and
reinstate his or her obligation;
(5) arranging or attempting to arrange for any delay
or postponement of the time of sale of the distressed
property;
(6) advising the filing of any document or assisting
in any manner in the preparation of any document for
filing with any court; or
(7) giving any advice, explanation, or instruction to
an owner of a distressed property that in any manner
relates to the cure of a default or forfeiture or to the
postponement or avoidance of sale of the distressed
property.
(Source: P.A. 94-822, eff. 1-1-07; 95-691, eff. 6-1-08;
95-1047, eff. 4-6-09.)

SB3940 - 61 - LRB104 17732 HLH 31163 b
(765 ILCS 940/30)
Sec. 30. Distressed property conveyance contract terms.
Every contract required by Section 25 must contain the entire
agreement of the parties, be fully assignable, and survive
delivery of any instrument of conveyance of the distressed
property. Every lease entered into pursuant to a contract
required by Section 25 is terminable at will by the distressed
property owner, without liability. Every contract required by
Section 25 must include the following terms:
(1) the name, business address, and the telephone
number of the distressed property purchaser;
(2) the address of the distressed property;
(3) the total consideration to be given by the
distressed property purchaser or tax lien payor in
connection with or incident to the sale;
(4) a complete description of the terms of payment or
other consideration including, but not limited to, any
services of any nature that the distressed property
purchaser represents he or she will perform for the owner
of the distressed property before or after the sale;
(5) a complete description of the terms of any related
agreement designed to allow the owner of the distressed
property to remain in the home such as a rental agreement,
repurchase agreement, contract for deed, or lease with
option to buy;
(6) a notice of cancellation as provided in this

SB3940 - 62 - LRB104 17732 HLH 31163 b
Section;
(7) the following notice in at least 12-point boldface
type, if the contract is printed, or in capital letters,
if the contract is typed, and completed with the name of
the distressed property purchaser, immediately above the
statement required by this Section:
"NOTICE REQUIRED BY ILLINOIS LAW
Until your right to cancel this contract has ended,
..................(Name) or anyone working for
...................(Name) CANNOT ask you to sign or have
you sign any deed or any other document. You are urged to
have this contract reviewed by an attorney of your choice
within 5 business days of signing it."; and
(8) if title to the distressed property will be
transferred in the conveyance transaction, the following
notice in at least 14-point boldface type if the contract
is printed, or in capital letters if the contract is
typed, and completed with the name of the distressed
property purchaser, immediately above the statement
required by this Section:
"NOTICE REQUIRED BY ILLINOIS LAW
As part of this transaction, you are giving up title
to your home.".
(9) in the case a distressed property is at risk of
loss for the non-payment of real estate taxes, a statement
that the property owner may have the right to obtain money

SB3940 - 63 - LRB104 17732 HLH 31163 b
for any equity lost if a tax deed is issued, either through
the right to indemnity or public auction, and will lose
the right to claim the surplus equity if they sell the
property, and should consult an attorney to discuss their
options before selling their property.
(Source: P.A. 94-822, eff. 1-1-07.)