Bill Details

Summary as Introduced

Amends the Local Governmental Acceptance of Credit Cards Act. Provides that the governing body of a governmental entity accepting payment by credit card may enter into agreements with third-party software providers for the purpose of ensuring that the governmental entity receives the correct remittance for payment. Provides that, if a governmental entity enters into an agreement with one or more financial institutions or other service providers to facilitate the acceptance and processing of credit card payments, then the agreement may not restrict or prevent the governmental entity from using the payment processing system outlined in the State Treasurer Act or any other payment processing system that the governmental entity has procured. Effective immediately.

Staff Analysis

The bill would fundamentally restructure the Illinois Property Tax Code to end the practice of "absolute forfeiture." The bill was approved as a response to the U.S. Supreme Court’s landmark Tyler v. Hennepin County ruling. Under the bill, local governments and tax buyers can no longer absorb a property's total equity to satisfy a smaller tax debt. Instead, the historical system will be replaced by a mandatory Judicial Tax Deed Auction designed to establish a property's true market value through public bidding. Any auction proceeds that exceed the underlying tax debt, interest, and administrative costs must be deposited with the County Treasurer and returned to the former owner. Additionally, the bill establishes county-level, fee-funded Surplus Equity Funds to protect former owners if a public auction fails to draw private bids, while significantly upgrading bilingual due process and notification requirements to ensure property owners understand their equity rights. 

Additional information is available via an ISACo Policy Brief.