Eye On Illinois: Judicial opinion preserving tax sale class action worth reading

Always read the decision.

One key component of becoming an informed and involved taxpayer and voter is taking the time to become familiar with reading judicial decisions. No disrespect to my colleagues in the reporting and journalistic analysis communities, but primary source documents bring readers one step closer to being able to ask useful questions and evaluate the perspectives of political figures who gain from having their version of reality be the accepted truth.

On my current reading list is an Oct. 18 opinion from U.S. District Judge Sara Ellis in which she rejected parts of a motion to dismiss a class action complaint targeting counties that seized and sold properties whose owners were delinquent on taxes. The 36-page ruling is available at tinyurl.com/TaxSaleDismiss.

Although the involved counties are small in number – Boone, Carroll, DuPage, Kane, Lake, Peoria, Will, Winnebago – the root issue is the Illinois Tax Code, making it an issue everywhere.

Under the system, counties place a first-priority lien on delinquent properties for the unpaid property tax amount. That sum accrues interest. If the property owner runs out of time to pay back the county, a state court will enter a judgment, which requires the treasurer of said county to offer the amount of unpaid taxes in an annual sale.

During that process, Ellis said, “potential buyers, who are often corporations and LLCs, but occasionally individuals, bid on the interest rate they will charge the property owner to redeem the property.” Whoever bids the lowest rate immediately pays the county the balance, which gives them the right to collect the money back from the property owner along with their interest rate and also place a lien on the property.

The winning bidder has to give the property owner time to repay them, typically 30 months. If they fail to do so, the party that won the tax sale process can ask a state court to declare them the owner of the property and evict any current occupants.

A leading reason I suggest you read the full opinion yourself is I’ve already used 76% of my space on background. But also, you’ve perhaps already formed an opinion on the issue and bringing that perception into the process is an interesting exercise in applying practical thought to legal precedent.

The status quo didn’t happen overnight. Reforms aren’t impossible but rarely come about without a meaningful, informed movement that pokes holes in the way we do things around here.

Is the current law fair? What consideration is due to a property owner’s invested equity? How strong are federal protections? Can we simply define “just compensation”? These questions don’t have easy answers, but asking them helps move our state forward.

• Scott T. Holland writes about state government issues for Shaw Local News Network. Follow him on X @sth749. He can be reached at sholland@shawmedia.com.