The 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. Key updates include the requirement that properties certified as abandoned or delinquent will be forfeited to the county treasurer, along with the introduction of a new fee of $175 for each property with unpaid taxes. The bill clarifies the timeline for the foreclosing governmental unit's right to possession and establishes a process for recording forfeiture certificates with the county register of deeds. It also allows for the redemption of forfeited properties under certain conditions, including potential reductions in payment amounts for qualifying property owners.

Additionally, the bill introduces a payment reduction program for properties with unpaid taxes, enabling reductions based on criteria such as taxable value and prior participation in payment reduction programs. It mandates the cancellation of any remaining unpaid taxes, interest, penalties, and fees if property owners comply with the payment reduction terms. The bill outlines the notification process for local governments regarding program participation and allows foreclosing governmental units to create delinquent property tax installment payment plans for financially distressed individuals, helping them avoid foreclosure. Furthermore, it establishes tax foreclosure avoidance agreements that county treasurers can enter into with property owners for up to five years, with penalties for non-compliance. Overall, these amendments aim to provide greater support and flexibility for property owners facing tax foreclosure.

Statutes affected:
House Introduced Bill: 211.78