The bill amends the General Property Tax Act of 1893, specifically sections 78g and 78q, to revise the procedures for the forfeiture and redemption of properties due to unpaid taxes. It establishes that properties certified as abandoned or delinquent for taxes, interest, penalties, and fees will be forfeited to the county treasurer on March 1 of each tax year. A new fee of $175 is introduced for each property with unpaid taxes, designated for the administration of the foreclosure process. The bill clarifies the timeline for the county treasurer to record forfeited properties and outlines the rights of individuals with an interest in the property to claim any remaining proceeds after a sale. Additionally, it introduces a payment reduction program for properties with unpaid taxes, allowing for reductions under certain conditions, and cancels any remaining unpaid amounts if a property owner pays a reduced amount.

Moreover, the bill modifies existing laws regarding delinquent property tax installment payment programs and tax foreclosure avoidance agreements. It specifies that properties in local units of government that provide written notice of participation will be included in the program, while those in non-participating units will be excluded. The bill allows foreclosing governmental units to create installment payment plans for eligible properties owned by financially distressed individuals, with provisions for combining these plans with tax payment reductions. It outlines the conditions for participation, including the potential removal of properties from foreclosure petitions upon successful completion of the payment plan. The previous deadline of June 30, 2026, for entering into tax foreclosure avoidance agreements is removed, providing more flexibility for managing delinquent property taxes, while also clarifying definitions for "eligible property" and "financially distressed person."

Statutes affected:
Senate Introduced Bill: 211.78