The unanimous 2023 Supreme Court ruling in Tyler v. Hennepin County establishes that governments cannot keep more from seized properties than what is owed in taxes. In Illinois, however, this principle is being undermined, with over 1,000 homes lost to foreclosure for debts as low as $200. This has resulted in a significant loss of equity for families while profits have gone to private investors who purchase tax liens. Critics argue that this practice contradicts the intent of tax collection and disproportionately affects vulnerable homeowners.
When the government takes a home to settle a tax debt, it cannot keep more than what's owed.
Illinois is still confiscating more than what's owed in property taxes.
State law requires that the asset be auctioned off, essentially to try to recoup their overdue taxes.
Typically, [the state is] giving it over to private investors who are purchasing these tax liens and sort of acting as a tax collector.
Collection
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