TAX DEED EQUITY

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3908

Introduced 2/6/2026, by Sen. Celina Villanueva

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1038 new
35 ILCS 200/21-90
35 ILCS 200/21-215
35 ILCS 200/21-295
35 ILCS 200/21-305
35 ILCS 200/21-355
35 ILCS 200/22-40
35 ILCS 200/22-55
35 ILCS 200/22-60
35 ILCS 200/22-65
35 ILCS 200/22-80
35 ILCS 200/22-100 new
35 ILCS 200/22-101 new

Amends the Property Tax Code. Establishes the State Tax Deed Equity
Fund. Provides that moneys in the Tax Deed Equity Fund shall be expended
exclusively for the purpose of paying the amount ordered for equity
surplus payments to Illinois property owners who have lost their property
by a recorded tax deed. Contains provisions concerning applications for
payment from the Tax Deed Equity Fund. Makes changes to the amount of the
indemnity fund fee. Makes changes concerning required notices by the tax
deed grantee to the owner of the property.
LRB104 19458 HLH 32906 b

A BILL FOR

SB3908
LRB104 19458 HLH 32906 b
1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The State Finance Act is amended by adding
5
Section 5.1038 as follows:

6

(30 ILCS 105/5.1038 new)
7

Sec. 5.1038.
The Tax Deed Equity Fund.

8

Section 10.
The Property Tax Code is amended by changing
9
Sections 21-90, 21-215, 21-295, 21-305, 21-355, 22-40, 22-55,
10
22-60, 22-65, and 22-80 and by adding Sections 22-100 and
11
22-101 as follows:

12

(35 ILCS 200/21-90)
13

Sec. 21-90.
Purchase and sale by county; distribution of
14
proceeds.
15

(a) When any property is offered for sale under any of the
16
provisions of this Code, the county board of the county in
17
which the property is located, in its discretion, may bid, or,
18
in the case of forfeited property, may apply to purchase it or
19
otherwise acquire the tax lien or certificate in the name of
20
the county as trustee for all taxing districts having an
21
interest in the property's taxes or special assessments for

SB3908
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LRB104 19458 HLH 32906 b
1
the nonpayment of which the property is sold. The presiding
2
officer of the county board, with the advice and consent of the
3
board, may appoint on its behalf some officer, person, or
4
entity to attend such sales, bid on tax liens or certificates,
5
and act on behalf of the county when exercising its authority
6
under this Section. The county shall apply on the bid or
7
purchase the unpaid taxes and special assessments due upon the
8
property. No cash need be paid
for the unpaid taxes and special
9
assessments due on the property for any purchase of
10
forfeiture. The county shall pay all nonrefundable fees
11
required under Section 22-100, 22-101, 22-40, 22-80
.
12

(b) The county, as trustee for all taxing districts having
13
an interest in the property's taxes or special assessments,
14
shall be the designated holder of all tax liens or
15
certificates that are forfeited to the State or county. No
16
cash need be paid for the forfeited tax lien or certificate.
17

(c) For any tax lien or certificate acquired under
18
subsection (a) or (b) of this Section, the county may take
19
steps necessary to acquire title to the property and may
20
manage and operate the property, including, but not limited
21
to, mowing of grass, removal of nuisance greenery, removal of
22
garbage, waste, debris or other materials, or the demolition,
23
repair, or remediation of unsafe structures. When a county, or
24
other taxing district within the county, is a petitioner for a
25
tax deed, no filing fee shall be required. When a county or
26
other taxing district within the county is the petitioner for

SB3908
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LRB104 19458 HLH 32906 b
1
a tax deed, one petition may be filed including all parcels
2
that are tax delinquent within the county or taxing district,
3
and any publication made under Section 22-20 of this Code may
4
combine all such parcels within a single notice. The notice
5
may include the street address as listed on the most recent
6
available tax bills, if available, and shall list the Property
7
Index Number of the parcels for informational purposes. The
8
county, as tax creditor and as trustee for other tax
9
creditors, or other taxing district within the county, shall
10
not be required to allege and prove that all taxes and special
11
assessments which become due and payable after the sale or
12
forfeiture to the county have been paid nor shall the county be
13
required to pay the subsequently accruing taxes or special
14
assessments at any time. The county board or its designee may
15
prohibit the county collector from including the property in
16
the tax sale of one or more subsequent years. The lien of taxes
17
and special assessments which become due and payable after a
18
sale to a county shall merge in the fee title of the county, or
19
other taxing district within the county, on the issuance of a
20
deed.
21

The county may sell any property acquired with authority
22
provided in this Section, or assign any tax certificate to any
23
party, including, but not limited to, taxing districts,
24
municipalities, land banks created pursuant to Illinois law,
25
or non-profit developers focused on constructing affordable
26
housing.

SB3908
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LRB104 19458 HLH 32906 b
1

The assigned tax certificate shall be void with no further
2
rights given to the assignee, including no right to refund or
3
reimbursement, if a tax deed has not been recorded within 4
4
years after the date of the assignment unless a court extends
5
the assignment period as provided in this Section. Upon a
6
motion by the assignee, a court may toll the 4-year deadline
7
for a specified period of time if the court finds the assignee
8
is prevented from obtaining or recording a deed by injunction
9
or order of any court, by the refusal or inability of any court
10
to act upon the application for a tax deed, by a municipality's
11
refusal to issue necessary transfer stamps or approvals for
12
recording, or by the refusal of the clerk to execute the deed.
13
If an assigned tax certificate is void under this Section, it
14
shall be forfeited to the county and held as a valid
15
certificate of sale in the county's name pursuant to this
16
Section 21-90.
Upon such a forfeiture, the county shall pay
17
all nonrefundable fees required under Section 22-100, 22-101,
18
22-40, 22-80 unless previously paid by any certificate holder.

19
The proceeds of any sale or assignment under this Section,
20
less all costs of the county incurred in the acquisition,
21
operation, maintenance, and sale of the property or assignment
22
of the tax certificate, including all costs associated with
23
county staff and overhead used to perform the duties of the
24
trustee set forth in this Section, shall be distributed to the
25
taxing districts in proportion to their respective interests
26
therein.

SB3908
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LRB104 19458 HLH 32906 b
1

Under Sections 21-110, 21-115, 21-120, and 21-190, a
2
county may bid or purchase only in the absence of other
3
bidders.
4
(Source: P.A. 102-363, eff. 1-1-22; 103-555, eff. 1-1-24
.)

5

(35 ILCS 200/21-215)
6

Sec. 21-215.
Penalty bids.
The person at the sale offering
7
to pay the amount due on each property for the least penalty
8
percentage shall be the purchaser of that property.
If
9
multiple bidders offer the least penalty percentage, the
10
collector shall declare the winning purchaser randomly.
No bid
11
shall be accepted for a penalty exceeding 9% of the amount of
12
the tax or special assessment on property.
13
(Source: P.A. 102-363, eff. 1-1-22
.)

14

(35 ILCS 200/21-295)
15

Sec. 21-295.
Creation of indemnity fund.
16

(a) In counties of less than 3,000,000 inhabitants, each
17
person purchasing any property at a sale under this Code shall
18
pay to the County Collector, prior to the issuance of any
19
certificate of purchase,
a nonrefundable

an
indemnity fee set
20
by the county collector of not more than
$25

$20
for each item
21
purchased. A like sum shall be paid for each year that all or a
22
portion of subsequent taxes are paid by the tax purchaser and
23
posted to the tax judgment, sale, redemption and forfeiture
24
record where the underlying certificate of purchase is

SB3908
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LRB104 19458 HLH 32906 b
1
recorded.
2

(a-5) In counties of 3,000,000 or more inhabitants, each
3
person purchasing property at a sale under this Code shall pay
4
to the County Collector a nonrefundable fee of
$100

$80
for
5
each item purchased plus an additional sum equal to 5% of the
6
taxes, interest, and penalties paid under Section 21-240. In
7
these counties,
prior to expiration of the period of
8
redemption,
the certificate holder shall also pay to the
9
County Collector a
nonrefundable
fee of
$50

$80
for each year
10
that all or a portion of subsequent taxes are paid by the tax
11
purchaser and posted to the tax judgment, sale, redemption,
12
and forfeiture record
. Following expiration of the period of
13
redemption, the certificate holder's payment of (i) any
14
subsequent tax and special assessment and (ii) any redemption
15
of any sale of subsequent taxes or forfeiture shall include a
16
nonrefundable 10% indemnity fund fee paid by the petitioner.
17
All fees received under this subsection shall be paid by the
18
collector and the county clerk to the county treasurer of the
19
county in which the land is situated for the purpose of funding
20
the county's indemnity fund established by this Section. No
21
fees incurred under this subsection shall be posted to the
22
subject tax sale pursuant to Section 21-355
. The changes to
23
this subsection made by this amendatory Act of the 91st
24
General Assembly are not a new enactment, but declaratory of
25
existing law.
26

(b) The amount paid prior to issuance of the certificate

SB3908
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LRB104 19458 HLH 32906 b
1
of purchase pursuant to subsection (a) or (a-5) shall be
2
included in the purchase price of the property in the
3
certificate of purchase and all amounts paid under this
4
Section shall be included in the amount required to redeem
5
under Section 21-355, except for the nonrefundable $80 fee for
6
each item purchased at the tax sale as provided in this
7
Section. Except as otherwise provided in subsection (b) of
8
Section 21-300, all money received under subsection (a) or
9
(a-5) shall be paid by the Collector to the County Treasurer of
10
the County in which the land is situated, for the purpose of an
11
indemnity fund. The County Treasurer, as trustee of that fund,
12
shall invest all of that fund, principal and income, in his or
13
her hands from time to time, if not immediately required for
14
payments of indemnities under subsection (a) of Section
15
21-305, in investments permitted by the Illinois State Board
16
of Investment under Article 22A of the Illinois Pension Code.
17
The county collector shall report annually to the county clerk
18
on the condition and income of the fund. The indemnity fund
19
shall be held to satisfy judgments obtained against the County
20
Treasurer, as trustee of the fund. No payment shall be made
21
from the fund, except upon a judgment of the court which
22
ordered the issuance of a tax deed.
23

(c) All indemnity fund fees under this Section shall be
24
paid by all certificate holders, including any municipality,
25
trustee, or county authority who acquires a certificate of
26
purchase or forfeiture under any provision of this Code.

SB3908
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LRB104 19458 HLH 32906 b
1
(Source: P.A. 100-1070, eff. 1-1-19; 101-659, eff. 3-23-21.)

2

(35 ILCS 200/21-305)
3

Sec. 21-305.
Payments from Indemnity Fund.
4

(a) Any owner of property sold under any provision of this
5
Code who sustains loss or damage by reason of the issuance of a
6
tax deed under Section 21-445 or 22-40 and who is barred or is
7
in any way precluded from bringing an action for the recovery
8
of the property shall have the right to indemnity for the loss
9
or damage sustained, limited as follows:

10

(1) An owner who resided on property that contained 4
11

or less dwelling units on the last day of the period of
12

redemption and who is equitably entitled to compensation
13

for the loss or damage sustained has the right to
14

indemnity. An equitable indemnity award shall be limited
15

to the fair cash value of the property as of the date the
16

tax deed was issued less any mortgages or liens on the
17

property, and the award will not exceed $99,000. The Court
18

shall liberally construe this equitable entitlement
19

standard to provide compensation wherever, in the
20

discretion of the Court, the equities warrant the action.

21

An owner of a property that contained 4 or less
22

dwelling units who requests an award in excess of $99,000
23

must prove that the loss of his or her property was not
24

attributable to his or her own fault or negligence before
25

an award in excess of $99,000 will be granted.

SB3908
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LRB104 19458 HLH 32906 b
1

(2) An owner who sustains the loss or damage of any
2

property occasioned by reason of the issuance of a tax
3

deed, without fault or negligence of his or her own, has
4

the right to indemnity limited to the fair cash value of
5

the property less any mortgages or liens on the property.
6

In determining the existence of fault or negligence, the
7

court shall consider whether the owner exercised ordinary
8

reasonable diligence under all of the relevant
9

circumstances.

10

(3) In determining the fair cash value of property
11

less any mortgages or liens on the property, the fair cash
12

value shall be reduced by the principal amount of all
13

taxes paid by the tax purchaser or his or her assignee
14

before the issuance of the tax deed.

15

(4) If an award made under paragraph (1) or (2) is
16

subject to a reduction by the amount of an outstanding
17

mortgage or lien on the property, other than the principal
18

amount of all taxes paid by the tax purchaser or his or her
19

assignee before the issuance of the tax deed and the
20

petitioner would be personally liable to the mortgagee or
21

lienholder for all or part of that reduction amount, the
22

court shall order an additional indemnity award to be paid
23

directly to the mortgagee or lienholder sufficient to
24

discharge the petitioner's personal liability. The court,
25

in its discretion, may order the joinder of the mortgagee
26

or lienholder as an additional party to the indemnity

SB3908
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LRB104 19458 HLH 32906 b
1

action.
2

(b) Indemnity fund; subrogation.

3

(1) Any person claiming indemnity hereunder shall
4

petition the Court which ordered the tax deed to issue,
5

shall name the County Treasurer, as Trustee of the
6

indemnity fund, as defendant to the petition, and shall
7

ask that judgment be entered against the County Treasurer,
8

as Trustee, in the amount of the indemnity sought. The
9

provisions of the Civil Practice Law shall apply to
10

proceedings under the petition, except that neither the
11

petitioner nor County Treasurer shall be entitled to trial
12

by jury on the issues presented in the petition. The Court
13

shall liberally construe this Section to provide
14

compensation wherever in the discretion of the Court the
15

equities warrant such action.

16

(2) The County Treasurer, as Trustee of the indemnity
17

fund, shall be subrogated to all parties in whose favor
18

judgment may be rendered against him or her, and by third
19

party complaint may bring in as a defendant any person,
20

other than the tax deed grantee and its successors in
21

title, not a party to the action who is or may be liable to
22

him or her, as subrogee, for all or part of the
23

petitioner's claim against him or her.
24

(c) Any contract involving the proceeds of a judgment for
25
indemnity under this Section, between the tax deed grantee or
26
its successors in title and the indemnity petitioner or his or

SB3908
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LRB104 19458 HLH 32906 b
1
her successors, shall be in writing. In any action brought
2
under Section 21-305, the Collector shall be entitled to
3
discovery regarding, but not limited to, the following:

4

(1) the identity of all persons beneficially
5

interested in the contract, directly or indirectly,
6

including at least the following information: the names
7

and addresses of any natural persons; the place of
8

incorporation of any corporation and the names and
9

addresses of its shareholders unless it is publicly held;
10

the names and addresses of all general and limited
11

partners of any partnership; the names and addresses of
12

all persons having an ownership interest in any entity
13

doing business under an assumed name, and the county in
14

which the assumed business name is registered; and the
15

nature and extent of the interest in the contract of each
16

person identified;

17

(2) the time period during which the contract was
18

negotiated and agreed upon, from the date of the first
19

direct or indirect contact between any of the contracting
20

parties to the date of its execution;

21

(3) the name and address of each natural person who
22

took part in negotiating the contract, and the identity
23

and relationship of the party that the person represented
24

in the negotiations; and

25

(4) the existence of an agreement for payment of
26

attorney's fees by or on behalf of each party.

SB3908
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LRB104 19458 HLH 32906 b
1

Any information disclosed during discovery may be subject
2
to protective order as deemed appropriate by the court. The
3
terms of the contract shall not be used as evidence of value.
4

(d) A petition of indemnity under this Section must be
5
filed within 10 years after the date the tax deed was issued.
6

(e) No award under this Section shall be permitted if any
7
person receives a judgment in their name under Sections 22-100
8
and 22-101.
9
(Source: P.A. 97-557, eff. 7-1-12
.)

10

(35 ILCS 200/21-355)
11

Sec. 21-355.
Amount of redemption.
Any person desiring to
12
redeem shall deposit an amount specified in this Section with
13
the county clerk of the county in which the property is
14
situated, in legal money of the United States, or by cashier's
15
check, certified check, post office money order or money order
16
issued by a financial institution insured by an agency or
17
instrumentality of the United States, payable to the county
18
clerk of the proper county. The deposit shall be deemed timely
19
only if actually received in person at the county clerk's
20
office prior to the close of business as defined in Section
21
3-2007 of the Counties Code on or before the expiration of the
22
period of redemption or by United States mail with a post
23
office cancellation mark dated not less than one day prior to
24
the expiration of the period of redemption. The deposit shall
25
be in an amount equal to the total of the following:

SB3908
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LRB104 19458 HLH 32906 b
1

(a) the certificate amount, which shall include all
2

tax principal, special assessments, interest and penalties
3

paid by the tax purchaser together with costs and fees of
4

sale and fees paid under Sections 21-295 and 21-315
5

through 21-335, except for
any

the
nonrefundable
fees

$80
6

fee
paid
under Sections 22-100, 22-101
,
and

pursuant to
7

Section
21-295, for each item purchased at the tax sale;
8

(b) the accrued penalty, computed through the date of
9

redemption as a percentage of the certificate amount, as
10

follows:
11

(1) if the redemption occurs on or before the
12

expiration of 6 months from the date of sale, the
13

certificate amount times the penalty bid at sale;
14

(2) if the redemption occurs after 6 months from
15

the date of sale, and on or before the expiration of 12
16

months from the date of sale, the certificate amount
17

times 2 times the penalty bid at sale;
18

(3) if the redemption occurs after 12 months from
19

the date of sale and on or before the expiration of 18
20

months from the date of sale, the certificate amount
21

times 3 times the penalty bid at sale;
22

(4) if the redemption occurs after 18 months from
23

the date of sale and on or before the expiration of 24
24

months from the date of sale, the certificate amount
25

times 4 times the penalty bid at sale;
26

(5) if the redemption occurs after 24 months from

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1

the date of sale and on or before the expiration of 30
2

months from the date of sale, the certificate amount
3

times 5 times the penalty bid at sale;
4

(6) if the redemption occurs after 30 months from
5

the date of sale and on or before the expiration of 36
6

months from the date of sale, the certificate amount
7

times 6 times the penalty bid at sale.
8

In the event that the property to be redeemed has been
9

purchased under Section 21-405 before January 1, 2024, the
10

penalty bid shall be 12% per penalty period as set forth in
11

subparagraphs (1) through (6) of this subsection (b). The
12

changes to this subdivision (b)(6) made by this amendatory
13

Act of the 91st General Assembly are not a new enactment,
14

but declaratory of existing law.
15

For counties with fewer than 3,000,000 inhabitants, if
16

the property to be redeemed is property with respect to
17

which a tax lien or certificate is acquired after January
18

1, 2024 by the county as trustee pursuant to Section
19

21-90, the penalty bid at sale shall accrue according to
20

the penalty periods established in subparagraphs (1)
21

through (6) of this subsection (b).
22

For counties with more than 3,000,000 inhabitants, if
23

the property to be redeemed is property with respect to
24

which a tax lien or certificate is acquired on or after
25

January 1, 2024 by the county as trustee pursuant to
26

Section 21-90, the penalty bid is 0.75% and shall accrue

SB3908
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LRB104 19458 HLH 32906 b
1

monthly instead of according to the penalty periods
2

established in subparagraphs (1) through (6) of this
3

subsection (b).
4

(c) The total of all taxes, special assessments,
5

accrued interest on those taxes and special assessments
6

and costs charged in connection with the payment of those
7

taxes or special assessments, except for
any

the

8

nonrefundable
fees

$80 fee
paid
,
pursuant to
Sections
9

22-100, 22-101, and

Section
21-295, for each item
10

purchased at the tax sale, which have been paid by the tax
11

certificate holder on or after the date those taxes or
12

special assessments became delinquent together with 12%
13

penalty on each amount so paid for each year or portion
14

thereof intervening between the date of that payment and
15

the date of redemption. In counties with less than
16

3,000,000 inhabitants, however, a tax certificate holder
17

may not pay all or part of an installment of a subsequent
18

tax or special assessment for any year, nor shall any
19

tender of such a payment be accepted, until after the
20

second or final installment of the subsequent tax or
21

special assessment has become delinquent or until after
22

the holder of the certificate of purchase has filed a
23

petition for a tax deed under Section 22.30. The person
24

redeeming shall also pay the amount of interest charged on
25

the subsequent tax or special assessment and paid as a
26

penalty by the tax certificate holder. This amendatory Act

SB3908
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LRB104 19458 HLH 32906 b
1

of 1995 applies to tax years beginning with the 1995
2

taxes, payable in 1996, and thereafter.
3

(d) Any amount paid to redeem a forfeiture occurring
4

before January 1, 2024 but after the tax sale together
5

with 12% penalty thereon for each year or portion thereof
6

intervening between the date of the forfeiture redemption
7

and the date of redemption from the sale.
8

(e) Any amount paid by the certificate holder for
9

redemption of a subsequently occurring tax sale, including
10

tax liens or certificates held by the county as trustee,
11

pursuant to Section 21-90
, except for any nonrefundable
12

fees paid under Sections 22-100, 22-101, and 21-295
.
13

(f) All fees paid to the county clerk under Section
14

22-5.
15

(g) All fees paid to the registrar of titles incident
16

to registering the tax certificate in compliance with the
17

Registered Titles (Torrens) Act.
18

(h) All fees paid to the circuit clerk and the
19

sheriff, a licensed or registered private detective, or
20

the coroner in connection with the filing of the petition
21

for tax deed and service of notices under Sections 22-15
22

through 22-30 and 22-40 in addition to (1) a fee of $35 if
23

a petition for tax deed has been filed, which fee shall be
24

posted to the tax judgement, sale, redemption, and
25

forfeiture record, to be paid to the purchaser or his or
26

her assignee; (2) a fee of $4 if a notice under Section

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22-5 has been filed, which fee shall be posted to the tax
2

judgment, sale, redemption, and forfeiture record, to be
3

paid to the purchaser or his or her assignee; (3) all costs
4

paid to record a lis pendens notice in connection with
5

filing a petition under this Code; and (4) if a petition
6

for tax deed has been filed, all fees up to $150 per
7

redemption paid to a registered or licensed title
8

insurance company or title insurance agent for a title
9

search to identify all owners, parties interested, and
10

occupants of the property, to be paid to the purchaser or
11

his or her assignee. The fees in (1) and (2) of this
12

paragraph (h) shall be exempt from the posting
13

requirements of Section 21-360. The costs incurred in
14

causing notices to be served by a licensed or registered
15

private detective under Section 22-15, may not exceed the
16

amount that the sheriff would be authorized by law to
17

charge if those notices had been served by the sheriff.
18

(i) All fees paid for publication of notice of the tax
19

sale in accordance with Section 22-20.
20

(j) All sums paid to any county, city, village or
21

incorporated town for reimbursement under Section 22-35.
22

(k) All costs and expenses of receivership under
23

Section 21-410, to the extent that these costs and
24

expenses exceed any income from the property in question,
25

if the costs and expenditures have been approved by the
26

court appointing the receiver and a certified copy of the

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order or approval is filed and posted by the certificate
2

holder with the county clerk. Only actual costs expended
3

may be posted on the tax judgment, sale, redemption and
4

forfeiture record.
5
(Source: P.A. 103-555, eff. 1-1-24; 103-592, eff. 6-7-24.)

6

(35 ILCS 200/22-40)
7

Sec. 22-40.
Issuance of deed; possession.
8

(a) To obtain an order for issuance of tax deed,
9
subsequent to expiration of the period of redemption or any
10
extended period of redemption, the certificate holder shall
11
file with the clerk of the circuit court of the county in which
12
the land is situated an application for an order directing the
13
county clerk to issue a tax deed and shall pay a $400 indemnity
14
fund fee. All fees received under this subsection shall be
15
paid by the circuit court of the county in which the land is
16
situated to the county treasurer of the county in which the
17
land is situated for the purpose of funding the county's
18
indemnity fund established by Section 21-295. The

the

19
petitioner must provide sufficient evidence that:
20

(1) the redemption period has expired and the property
21

has not been redeemed;
22

(2) all taxes and special assessments which became due
23

and payable subsequent to the sale have been paid, unless
24

the county or its agent, as trustee pursuant to Section
25

21-90, is the petitioner;

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(3) all forfeitures and sales which occur subsequent
2

to the sale are paid or redeemed, unless the county or its
3

agent, as trustee pursuant to Section 21-90, is the
4

petitioner;
5

(4) the notices required by law have been given, and
6

all advancements of public funds under the police power
7

made by a county, city, village, or town under Section
8

22-35 have been paid;
and

9

(5) the petitioner has complied with all the
10

provisions of law entitling him or her to a deed
; and

.
11

(6) the petitioner has proved to the satisfaction of
12

the court the name and last known address of the owner or
13

beneficial owner of record.
14

Upon receipt of sufficient evidence of the requirements
15
under this subsection (a), the court shall find that the
16
petitioner complied with those requirements
and proved to the
17
satisfaction of the court the name and last known address of
18
the owner or beneficial owner of the property ascertained
19
through diligent inquiry
and shall enter an order directing
20
the county clerk, on the production of the tax certificate and
21
a certified copy of the order, to issue to the purchaser or its
22
assignee a tax deed. The court shall insist on strict
23
compliance with Section 22-10 through 22-25. Prior to the
24
entry of an order directing the issuance of a tax deed, the
25
petitioner shall furnish the court with a report of
26
proceedings of the evidence received on the application for

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tax deed and the report of proceedings shall be filed and made
2
a part of the court record.
3

(b) Except as provided in subsection (e), if taxes for
4
years prior to the year or years sold are or become delinquent
5
subsequent to the date of sale, the court shall find that the
6
lien of those delinquent taxes has been or will be merged into
7
the tax deed grantee's title if the court determines that the
8
tax deed grantee or any prior holder of the certificate of
9
purchase, or any person or entity under common ownership or
10
control with any such grantee or prior holder of the
11
certificate of purchase, was at no time the holder of any
12
certificate of purchase for the years sought to be merged. If
13
delinquent taxes are merged into the tax deed pursuant to this
14
subsection, the court shall enter an order declaring which
15
specific taxes have been or will be merged into the tax deed
16
title and directing the county treasurer and county clerk to
17
reflect that declaration in the warrant and judgment records;
18
provided, that no such order shall be effective until a tax
19
deed has been issued and timely recorded. Nothing contained in
20
this Section shall relieve any owner liable for delinquent
21
property taxes under this Code from the payment of the taxes
22
that have been merged into the title upon issuance of the tax
23
deed.
24

(c) The county clerk is entitled to a fee of $10 in
25
counties of 3,000,000 or more inhabitants and $5 in counties
26
with less than 3,000,000 inhabitants for the issuance of the

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tax deed, with the exception of deeds issued to the county
2
pursuant to its authority under Section 21-90. The clerk may
3
not include in a tax deed more than one property as listed,
4
assessed and sold in one description, except in cases where
5
several properties are owned by one person.
The fee paid to the
6
county clerk for the issuance of the tax deed shall be
7
accompanied by a receipt from the county treasurer as trustee
8
of the indemnity fund proving payment of a nonrefundable
9
$1,000 indemnity fund fee in counties of 3,000,000 or more
10
inhabitants and a receipt from the county treasurer as trustee
11
of the indemnity fund proving payment of a nonrefundable $200
12
indemnity fund fee in counties with less than 3,000,000
13
inhabitants. All fees received under this subsection shall be
14
paid for the purpose of funding the county's indemnity fund
15
established under Section 21-295.

16

(d)
Upon application, the court shall enter an order to
17
place the tax deed grantee or the grantee's successor in
18
interest in possession of the property and may enter orders
19
and grant relief as may be necessary or desirable to maintain
20
the grantee or the grantee's successor in interest in
21
possession.
22

(e)

(d)
The court shall retain jurisdiction to enter
23
orders pursuant to
Section 22-100 and 22-101 and
subsections
24
(b) and (c) of this Section. Public Act 92-223 and Public Act
25
95-477 shall be construed as being declarative of existing law
26
and not as a new enactment.

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(f)

(e)
Prior to the issuance of any tax deed under this
2
Section, the petitioner must redeem all taxes and special
3
assessments on the property that are subject to a pending tax
4
petition filed by a county or its assignee pursuant to Section
5
21-90.
6

(g)

(f)
If, for any reason, a purchaser fails to obtain an
7
order for tax deed within the required time period and no sale
8
in error was granted or redemption paid, then the certificate
9
shall be forfeited to the county, as trustee, pursuant to
10
Section 21-90.
11

(h) Every order directing the county clerk to issue a tax
12
deed shall contain the name and last known address of the owner
13
or beneficial owner of the property.

14
(Source: P.A. 103-555, eff. 1-1-24; 104-417, eff. 8-15-25.)

15

(35 ILCS 200/22-55)
16

Sec. 22-55.
Tax deeds to convey merchantable title.
This
17
Section shall be liberally construed so that tax deeds shall
18
convey merchantable title. In the event the property has been
19
taken by eminent domain under the Eminent Domain Act, the tax
20
purchaser shall be entitled to the award which is the
21
substitute for the property. Tax deeds issued pursuant to this
22
Section are subject to Section 22-70.
Nothing in Section
23
22-100 and Section 22-101 shall affect the merchantable title
24
conveyed upon the recording of the tax deed.

25
(Source: P.A. 94-1055, eff. 1-1-07.)

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1

(35 ILCS 200/22-60)
2

Sec. 22-60.
Contents of deed; recording
; notice
.
3

(a)
Every tax deed shall contain the full names and the
4
true post office address and residence of grantee. A county
5
receiving a tax deed pursuant to Section 21-90 may designate a
6
specific county agency to be named as the deed grantee. It
7
shall not be of any force or effect, and the recipient shall
8
not take title to the property, until after the deed has been
9
recorded in the office of the recorder.
10

(b) In order to be entitled to a tax deed, the tax deed
11
grantee listed on the tax deed, including any county, trustee,
12
land bank or municipality, shall deliver to the county clerk a
13
notice to be given to the person or persons found to be the
14
last known record owner or beneficial owner of the property in
15
the order directing issuance of tax deed, in at least 10-point
16
type in the following form completely filled in:
17
Notice of Tax Deed

18

I,....., County Clerk in and for said County, in the State
19
of Illinois, do hereby certify that on, 20… I sent by certified
20
mail postage prepaid, and by first class mail the following
21
notice to the following parties, addressed as follows: Name of
22
name of the owner or beneficial owner of the property listed in
23
the 22-40(a) judgment;
24

Address of the owner or beneficial owner of the property
25
listed in the 22-40(a) judgment;

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PLEASE TAKE NOTICE that tax deed number ..... was issued
2
to..... pursuant to court order for the property identified by
3
property index number ..... and commonly known as....., city,
4
Illinois, in County, Illinois.
5

Upon the tax deed being recorded pursuant to Section
6
22-60, all right, title, and interest to the property will be
7
taken and title transferred to the named tax deed grantee.
8

The record owner of the property or any beneficial owner
9
of the property has 120 days from the date of this notice to
10
apply for the Tax Deed Equity Fund payment pursuant to
11
Sections 22-100 and 22-101. For more information, contact the
12
county treasurer in which the property is located.
13
..... County Clerk

14
....., County, Illinois

15
Dated: .....

16

(c) Upon receiving the order directing the county clerk to
17
issue a tax deed, the notice provided in this Section, and the
18
form tax deed, the county clerk shall stamp the date of receipt
19
of the notice and shall within 7 days of receipt give notice by
20
certified mail return receipt requested and first class mail
21
to the last known record owner or beneficial owner listed in
22
the notice received from the tax deed grantee;
23

(d) The tax deed grantee shall record the stamped notice
24
from the county clerk provided in this Section as an
25
attachment to the tax deed.

26
(Source: P.A. 103-555, eff. 1-1-24
.)

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(35 ILCS 200/22-65)
2

Sec. 22-65.
Form of deed.
A tax deed executed by the county
3
clerk under the official seal of the county shall be recorded
4
in the same manner as other conveyances of property, and vests
5
in the grantee, his or her heirs and assigns, the title of the
6
property therein described without further acknowledgment or
7
evidence of the conveyance.
Tax deeds issued under this
8
Section shall not require prior to recording, municipal
9
transfer or exemption stamps and shall not be subject to any
10
municipal real estate transfer taxes, including any charges
11
for water.
The conveyance shall be substantially in the
12
following form:
13
State of Illinois)

14
) ss.

15
County of .......)
16

At a public sale of property for the nonpayment of taxes,
17
held in the county above stated, on (insert date), the
18
following described property was sold: (here place description
19
of property conveyed). The property not having been redeemed
20
from the sale, and it appearing that the holder of the
21
certificate of purchase of the property has complied with the
22
laws of the State of Illinois necessary to entitle (insert
23
him, her or them) to a deed of the property: I ...., county
24
clerk of the county of ...., in consideration of the property
25
and by virtue of the statutes of the State of Illinois in such

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1
cases provided, grant and convey to ...., his or her heirs and
2
assigns forever, the property described above.
3

Dated (insert date).
4
Signature of .................. County Clerk
5
Seal of County of ...., Illinois
6
(Source: P.A. 91-357, eff. 7-29-99.)

7

(35 ILCS 200/22-80)
8

Sec. 22-80.
Order of court setting aside tax deed;
9
payments to holder of deed.
10

(a) Any order of court vacating an order directing the
11
county clerk to issue a tax deed based upon a finding that the
12
property was not subject to taxation or special assessment, or
13
that the taxes or special assessments had been paid prior to
14
the sale of the property, or that the tax sale was otherwise
15
void, shall declare the tax sale to be a sale in error pursuant
16
to Section 21-310 of this Act. The order shall direct the
17
county collector to refund to the tax deed grantee or his or
18
her successors and assigns (or, if a tax deed has not yet
19
issued, the holder of the certificate) the following amounts:

20

(1) all taxes and special assessments purchased, paid,
21

or redeemed by the tax purchaser or his or her assignee, or
22

by the tax deed grantee or his or her successors and
23

assigns, whether before or after entry of the order for
24

tax deed, with interest at the rate of 1% per month from
25

the date each amount was paid until the date of payment

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1

pursuant to this Section;

2

(2) all costs paid and posted to the judgment record
3

and not included in paragraph (1) of this subsection (a);
4

and

5

(3) court reporter fees for the hearing on the
6

application for tax deed and transcript thereof,
the
cost
7

of certification of tax deed order,
the
cost of issuance
8

of tax deed, and
the
cost of recording of tax deed.
9

(b) Except in those cases described in subsection (a) of
10
this Section, and unless the court on motion of the tax deed
11
petitioner extends the redemption period to a date not later
12
than 3 years from the date of sale, any order of court finding
13
that an order directing the county clerk to issue a tax deed
14
should be vacated shall direct the party who successfully
15
contested the entry of the order to pay to the tax deed grantee
16
or his or her successors and assigns (or, if a tax deed has not
17
yet issued, the holder of the certificate) within 90 days
18
after the date of the finding:

19

(1) the amount necessary to redeem the property from
20

the sale as of the last day of the period of redemption,
21

except that, if the sale is a scavenger sale pursuant to
22

Section 21-260 of this Act, the redemption amount shall
23

not include an amount equal to all delinquent taxes on
24

such property which taxes were delinquent at the time of
25

sale; and

26

(2) amounts in satisfaction of municipal liens paid by

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1

the tax purchaser or his or her assignee, and the amounts
2

specified in paragraphs (1) and (3) of subsection (a) of
3

this Section, to the extent the amounts are not included
4

in paragraph (1) of this subsection (b).
5

(3) if the tax deed grantee is a municipality,
6

trustee, or county authority, the amount necessary to
7

redeem the property from the sale as of the last day of the
8

period of redemption shall be paid to the county clerk in
9

satisfaction of the amounts due under this Section, except
10

that, if the sale is a scavenger sale pursuant to Section
11

21-260 of this Act, the redemption amount shall not
12

include an amount equal to all delinquent taxes on such
13

property which taxes were delinquent.

14

(4)
If the payment is not made within the 90-day
15

period, the petition to vacate the order directing the
16

county clerk to issue a tax deed shall be denied with
17

prejudice, and the order directing the county clerk to
18

issue a tax deed shall remain in full force and effect. No
19

final order vacating any order directing the county clerk
20

to issue a tax deed shall be entered pursuant to this
21

subsection (b) until the payment has been made.
22
(Source: P.A. 91-357, eff. 7-29-99.)

23

(35 ILCS 200/22-100 new)
24

Sec. 22-100.
Tax Deed Equity Fund; collection by county
25
treasurers.

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(a) Each county treasurer shall transmit to the State
2
Treasurer all Tax Deed Equity Fund payments paid to the county
3
treasurer under this section and in the county treasurer's
4
possession after each tax sale, with a report under oath
5
identifying the total amount of property tax liens sold and
6
the amount collected for the Tax Deed Equity Fund from each
7
lien. Those amounts and the report shall be transmitted to and
8
received by the State Treasurer by the 10th day after each tax
9
sale and held in an interest bearing escrow account separate
10
from all other accounts of any county. At the same time, a copy
11
of the report shall be furnished to the Attorney General. The
12
report shall be in a form and contain the particulars as the
13
State Treasurer may prescribe. The State Treasurer shall give
14
the county treasurer a receipt for the amount transmitted to
15
the State Treasurer. Except as provided in subsection (a-5) of
16
this Section, if any county treasurer fails to pay to the State
17
Treasurer all amounts that may be due and payable as required
18
by this Section, the county treasurer shall pay to the State
19
Treasurer, as a penalty, a sum of money equal to the interest
20
on the amounts not paid at the rate of 1% per month from the
21
time those amounts are due by the county treasurer until those
22
amounts are paid. The sureties upon the official bond of the
23
county treasurer shall be security for the payment of the
24
penalty. The penalty under this Section may be recovered in a
25
civil action against the county treasurer and his or her
26
sureties, in the name of the People of the State of Illinois,

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1
in the circuit court of the county in which the county
2
treasurer is resident; and the penalty, when recovered, shall
3
be paid into the State treasury. The civil action to recover
4
the penalty shall be brought by the State Treasurer within 10
5
days after the failure of the county treasurer to pay to the
6
State Treasurer any amounts collected by the county treasurer
7
within the time required by this Section. Failure to bring the
8
action within that time shall not prevent the bringing of the
9
action thereafter. It is the duty of the State Treasurer to
10
make necessary and proper investigation to determine what
11
amounts should be paid under this Section.
12

(b) The State Treasurer may waive penalties imposed by
13
subsection (a) of this Section on a case-by-case basis if the
14
State Treasurer finds that imposing penalties would be
15
unreasonable or unnecessarily burdensome because the delay in
16
payment was due to an incident caused by the operation of an
17
extraordinary force, including, but not limited to, the
18
occurrence of a natural disaster, that cannot be foreseen,
19
that cannot be avoided by the exercise of due care, and for
20
which no person can be held liable.
21

(c) The total amount collected from the county treasurer
22
shall be deposited into the Tax Deed Equity Fund, a special
23
fund created in the State treasury.
24

(d) Moneys in the Tax Deed Equity Fund shall be expended
25
exclusively for the purpose of paying the amount ordered for
26
equity surplus payments to Illinois property owners who have

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1
lost their property by a recorded tax deed, except that,
2
beginning no less than 2 years after the effective date of this
3
amendatory Act of the 104th General Assembly, whenever the
4
State Treasurer determines that any such moneys in the Tax
5
Deed Equity Fund exceed the amount of payments ordered, the
6
State Treasurer may transfer any such excess amounts from the
7
Tax Deed Equity Fund to the county treasurer's indemnity fund
8
equal to the percentage portion of the total amount paid into
9
the Tax Deed Equity Fund on a per sale basis. The county
10
treasurer shall make written request for payment from the Tax
11
Deed Equity Fund pursuant to the court order on the
12
application for equity fund payment as provided in this
13
Section. The State Treasurer shall review and account for the
14
Tax Deed Equity Fund and may adjust the payment requirements
15
provided in section 22-101(f) and (g) from time to time as
16
required to maintain sufficient and appropriate sums in the
17
Tax Deed Equity Fund as necessary.
18

(e) This Section shall constitute an irrevocable and
19
continuing appropriation from Illinois tax lien purchases for
20
the purpose of paying tax deed equity surplus payments to
21
divested property owners whose property is conveyed by tax
22
deed for the non-payment of real estate taxes upon the order of
23
the Treasurer in accordance with the provisions of this
24
Section and for the purpose of paying equity surplus to the
25
divested property owner as required by the United States and
26
Illinois constitutions.

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(f) In counties of less than 3,000,000 inhabitants, each
2
person purchasing any property at a sale under this Code shall
3
pay to the county treasurer a nonrefundable Tax Deed Equity
4
Fund fee equal to 10% of the total amount of each item
5
purchased under Section 21-240. A like sum shall be paid for
6
each year that all or a portion of subsequent taxes paid by the
7
tax purchaser and posted to the sale. The 10% fee of the total
8
certificate amount shall be paid by all certificate holders
9
including any municipality, trustee, or county authority who
10
acquire a certificate under Section 21-90.
11

(g) In counties with 3,000,000 or more inhabitants, each
12
person purchasing property at a sale under this Code shall pay
13
to the county treasurer a nonrefundable Tax Deed Equity Fund
14
fee of $250 for each item purchased under Section 21-240. In
15
these counties, the certificate holder shall also pay to the
16
county treasurer a fee of $150 for each year that all or a
17
portion of subsequent taxes are paid by the tax purchaser and
18
posted to the sale. The $250 fee per certificate shall be paid
19
by all certificate holders including any municipality,
20
trustee, or county authority who acquire a certificate under
21
Section 21-90.
22

(h) The Tax Deed Equity Fund fees collected under (f) and
23
(g) shall be collected, disbursed and accounted for as set
24
forth in (a).
25

(i) The amount paid prior to issuance of the certificate
26
of purchase pursuant to subsection (f) and (g) shall be

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1
included in the purchase price of the property in the
2
certificate of purchase and shall not be included in the
3
amount required to redeem under Section 21-355. All money
4
received under subsection (b) or (c) shall be paid by the
5
Collector to the county treasurer who shall transmit to the
6
State Treasurer all such payments collected pursuant to
7
Section 21-100. The changes made to this Section by this
8
amendatory Act of the 104th General Assembly apply to matters
9
concerning tax certificates issued on or after the effective
10
date of this amendatory Act of the 104th General Assembly.

11

(35 ILCS 200/22-101 new)
12

Sec. 22-101.
Application for Tax Deed Equity Fund Payment.
13

(a) No payment shall be made from the Tax Deed Equity Fund,
14
except on application to the Tax Deed Equity Fund and judgment
15
as provided in this Section. Applications for Tax Deed Equity
16
Fund payments may be filed with the county treasurer in which
17
the land is situated at any time after the tax deed is recorded
18
and for a period of no less than 120 days after the tax deed is
19
recorded. The application shall be made in the following form,
20
completely filled in and submitted on or before 120 days after
21
the date the notice under subsection (b) of Section 22-60 is
22
given to the last known record owner or beneficial owner of the
23
property, to the county treasurer in which the property is
24
located, along with a non-refundable application fee as
25
designated by the applicable county treasurer:

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APPLICATION FOR TAX DEED EQUITY FUND PAYMENT

2
Name
.........................................................
3
Address
......................................................
4
City State Zip
...............................................
5
Telephone No.
................................................
6
Email Address
................................................
7
Date of Application
..........................................
8

I,....., was the owner, beneficial owner, or possessed a
9
property interest in the property commonly known as .....,
10
identified by parcel/property index number ..... until a tax
11
deed was recorded on .....(date) in ..... County, Illinois. A
12
copy of the deed providing my ownership interest and the
13
recorded tax deed are attached to this application.
14

.....(initial here) I agree to the County Assessor's
15
determination of the estimated fair market value of the
16
property for the year in which the tax deed was recorded.
17

.....(initial here) I do not agree to the County
18
Assessor's determination of the estimated fair market value of
19
the property for the year in which the tax deed was recorded
20
and will provide within 30 days of this application an
21
certified appraisal from an Illinois licensed appraiser
22
stating the fair market value of the property lost to tax deed
23
as of the date the tax deed was recorded.
24

.....(initial here) I acknowledge that any contract
25
involving the proceeds of a Tax Deed Equity Fund payment under
26
this Section, between the tax deed grantee or its successors

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1
in title and the Tax Deed Equity Fund claimant or his or her
2
successors, shall be in writing. For any application brought
3
under this Section, any contract involving the proceeds of the
4
Tax Deed Equity Fund application shall be attached to the
5
application and include the identity of all persons
6
beneficially interested in the contract, directly or
7
indirectly, including at least the following information:
8

(1) the names and addresses of any natural persons;
9

the place of incorporation of any corporation and the
10

names and addresses of its shareholders unless it is
11

publicly held; the names and addresses of all general and
12

limited partners of any partnership;
13

(2) the names and addresses of all persons having an
14

ownership interest in any entity doing business under an
15

assumed name, and the county in which the assumed business
16

name is registered; and the nature and extent of the
17

interest in the contract of each person identified;
18

(3) the time period during which the contract was
19

negotiated and agreed upon, from the date of the first
20

direct contact between any of the contracting parties and
21

the date of its execution;
22

(4) the name and address of each natural person who
23

took part in negotiating the contract between any
24

contracting parties to the date of its execution;
25

(5) the existence of an agreement for the payment of
26

attorney's fees by or on behalf of each party;

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1

(6) the terms of the contract shall not be used as
2

evidence of value.
3

.....(initial here) I have not entered into a contract to
4
assign any payment sought in this Application and understand
5
that I am required to supplement my Application if a contract
6
is entered into after submission of this Application or court
7
order granting my application and directing payment from the
8
Tax Deed Equity Fund.
9

.....(initial here) I have entered into a contract to
10
assign payment from the Tax Deed Equity Fund sought in this
11
Application. A copy of the contract is attached to this
12
Application.
13

Under penalties as provided by law pursuant to Section
14
1-109 of the Code of Civil Procedure, the undersigned
15
certifies that the statements in this instrument are true and
16
correct.
17
Date: ..... Claimant Name
....................................

18

Claimant Signature
...............................

19

(b) Upon receipt of the application, the county treasurer,
20
through his or her counsel or designated agent, shall review
21
the application and request any additional documents necessary
22
from the claimant.
23

Upon review of the application, and if approved, the
24
county treasurer pursuant to Section 22-40(d) shall file an
25
administrative application for Tax Deed Equity Fund Payment in
26
the court that entered the order directing the county clerk to

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1
issue a tax deed. The treasurer shall provide the total amount
2
of taxes, penalties and interest paid by the tax deed grantee
3
to obtain the tax deed including the costs of sale as provided
4
by the county treasurer pursuant to the county records.
5

(c) At the hearing, the court shall determine the Tax Deed
6
Equity Fund award amount based on the claimant's application
7
for Tax Deed Equity Surplus assessed or appraised value of the
8
property or any county treasurer challenge thereto, less the
9
total amount of taxes, penalties, and interest paid by the tax
10
deed grantee to obtain the tax deed including the costs of sale
11
as provided by the county treasurer pursuant to the county
12
records. The property's surplus or excess value shall be paid
13
pursuant to a judgment entered by the court. The property's
14
surplus or excess value shall be the subject of the Tax Deed
15
Equity Fund under Sections 22-100 and 22-101. No interest
16
shall be paid for any payment ordered under this subsection.
17

(d) Within 5 business days, the county treasurer shall
18
transmit the order for payment to the State Treasurer for
19
payment including the name and address of the person entitled
20
to payment.
21

(e) The county shall be allowed to pass an ordinance to
22
charge an application fee of up to $100 per application for
23
payment from the Tax Deed Equity Fund.
24

(f) The divested property equity amount shall be
25
calculated by the adjudicated amount of the fair market value
26
of the property under subsection (c) of 22-100 at the time of

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1
loss, less: (1) the principal amount of taxes paid to obtain
2
the tax deed, including all statutory interest, fees and costs
3
posted to the tax sale paid by the tax deed grantee; and (2)
4
any taxes paid subsequent to the last day to redeem but prior
5
to entry of the order directing the county clerk to issue a tax
6
deed.
7

(g) If any owner or claimant with a valid ownership
8
interest in the property lost to tax deed files a petition to
9
vacate the tax deed order pursuant to Section 2-1203 or 2-1401
10
of the Code of Civil Procedure or seek a finding that the tax
11
deed is otherwise void, the time from the date of filing
12
through final judgment thereon shall be excluded from
13
computation of the 120 days as provided in this Section.
14

(h) Claimants seeking just compensation under this Section
15
may recover attorney's fees for the purpose of encouraging
16
settlement and prompt administrative handling of applications.
17
The amount of attorney's fees on applications for Tax Deed
18
Equity Fund payment that are undisputed by the county
19
treasurer shall not exceed $500 in connection with the
20
claimant's preparation, filing, or advancement of any
21
application for equity fund payment unless there is a contract
22
involving the proceeds of a Tax Deed Equity Fund payment
23
between the tax deed grantee or its successors in title and the
24
Tax Deed Equity Fund claimant or his or her successors.
25

(i) The county clerk shall mark his or her official
26
judgment and sale records for the tax deed issued with

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notation of the total amount paid from the Tax Deed Equity Fund
2
for the tax deed.
3

The changes made to this Section by this amendatory Act of
4
the 104th General Assembly apply to matters concerning tax
5
certificates issued on or after the effective date of this
6
amendatory Act of the 104th General Assembly.

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