SPRINGFIELD — State Senator Willie Preston is urging the adoption of legislation aimed at strengthening protections for property owners while modernizing Illinois’ property tax sale system.

“For too many families, falling behind on property taxes can quickly spiral into losing everything,” said Preston (D-Chicago). “This bill gives people more time to get back on their feet while making sure the system is more transparent and fair when properties do have to be sold.”

Senate Bill 3494 would extend the redemption period for delinquent property taxes and establish a new judicial process for tax sales.

Under current law, property owners have 2.5 years to redeem their property after a tax sale by paying the delinquent amount plus interest. Senate Bill 3494 would extend that redemption period to five years, providing homeowners with additional time to recover financially and retain ownership of their property.

The legislation also would create a new pathway for tax buyers to petition the circuit court to initiate a sale of the property through a mortgage foreclosure-like process. This would include a judicial sale conducted via an online auction platform. The entity operating the auction would receive 3% of the sale proceeds, while any surplus funds — beyond what is owed — would be returned to the original property owner, provided they take specific steps within 120 days of the sale.

“If a property is sold, the original owner should have a real opportunity to recover what’s rightfully theirs,” said Preston. “By creating a structured, court-supervised process and returning surplus funds, we’re putting some guardrails in place that prioritize people — not just profits.”

A subject matter hearing on Senate Bill 3494 was held Thursday. The measure awaits further consideration.