Senate Amendment 2 to HB 1437 (Senator Cunningham, D-Chicago) includes, among several other provisions, a change to Section 21-150 of the Property Tax Code (35 ILCS 200/21-150) to delay the timing of Cook County’s next annual tax sale. The measure specifies that the application for judgment and order of sale for the 2023 tax year (normally held in calendar year 2025) must be filed on or before July 27, 2026, instead of March 10, 2026.
The amendment, filed on October 28, 2025, also provides that interest shall not accrue between September 2, 2025, and September 1, 2026, on delinquent 2023 tax balances. This replaces the previous cutoff date of April 1, 2026.
These changes extend the timeline for Cook County’s 2023 tax sale by several months and suspend interest on unpaid taxes for a full year.
While the amendment does not directly address the issue of equity forfeiture, it is part of a broader legislative response to a U.S Supreme Court decision.
In Tyler v. Hennepin County (598 U.S. ___, 2023), the U.S. Supreme Court decided that when a government sells a property for unpaid taxes, it cannot retain the surplus value of that property beyond the taxes, interest, and fees owed. Doing so, the Court said, constitutes an unconstitutional taking under the Fifth Amendment because the property owner retains a protected interest in the property’s equity.
The ruling invalidated Minnesota’s “equity forfeiture” system and signaled that similar practices in other states — including Illinois — must be reexamined. Illinois’ long-standing tax sale process allows private purchasers to obtain full title to a property after the redemption period, without any mechanism for returning surplus equity to the former owner.
By postponing Cook County’s 2023 annual tax sale, the amendment:
- Buys time for the General Assembly and Cook County to evaluate and reform Illinois’ tax sale process to ensure compliance with Tyler.
- Reduces litigation risk by avoiding a tax sale conducted under statutory provisions that may later be deemed unconstitutional.
- Protects taxpayers by suspending interest during the delay period so they are not penalized financially while the system is under review.
The suspension of interest from September 2025 through September 2026 serves as a temporary relief measure for delinquent taxpayers, ensuring they are not burdened with additional penalties during the extended timeline. However, this also reduces potential interest income that would otherwise accrue to taxing bodies.
The langauge in the amendment to HB 1437 is a response to Tyler v. Hennepin County (598 U.S. ___, 2023), the U.S. Supreme Court decision that when a government sells a property for unpaid taxes, it cannot retain the surplus value of that property beyond the taxes, interest, and fees owed. Doing so, the Court said, constitutes an unconstitutional taking under the Fifth Amendment because the property owner retains a protected interest in the property’s equity.
The ruling invalidated Minnesota’s “equity forfeiture” system and signaled that similar practices in other states — including Illinois — must be reexamined. Illinois’ long-standing tax sale process allows private purchasers to obtain full title to a property after the redemption period, without any mechanism for returning surplus equity to the former owner.