This bill amends the General Property Tax Act of 1893, specifically sections 78g and 78q, to enhance the procedures for property forfeiture and redemption due to unpaid taxes. A significant change is the introduction of a $175 fee for properties with delinquent taxes, aimed at funding the administration of tax foreclosure processes. The bill clarifies the timeline for property owners to redeem their properties after a foreclosure judgment and establishes that any unpaid taxes, interest, penalties, and fees not returned as delinquent will remain in effect even after redemption. Additionally, it outlines the process for issuing redemption certificates.

The bill also introduces a payment reduction program for financially distressed individuals with unpaid delinquent taxes, allowing for reductions based on specific criteria. It grants county treasurers the authority to cancel remaining unpaid amounts if property owners comply with the program's terms. Furthermore, it allows for the establishment of a delinquent property tax installment payment plan, which can be combined with the payment reduction, and provides a tax foreclosure avoidance agreement for property owners who meet certain conditions. Notably, the bill removes the previous deadline of June 30, 2026, for entering into these agreements, thereby offering more flexible options for property owners while ensuring local governments can effectively manage tax collections.

Statutes affected:
Substitute (S-1): 211.78
Senate Introduced Bill: 211.78
As Passed by the Senate: 211.78