LaSalle County board votes to end private tax sales
The county also estimates it could be liable for as much as $4 million in surplus equity owed to former owners who lost their properties.
LaSalle County will hold certificates for delinquent property taxes rather than sell them, potentially saving owners money in resolving those debts.
Separately, the county faces paying back up to $4 million in lost equity to former owners after Illinois enacted a law this year to adhere to a U.S. Supreme Court ruling.
The LaSalle County Board voted in September to acquire the certificates as trustee for the tax sale for 2025 taxes payable in 2026. The county will charge interest of 0.75% a month, compared with up to 9% every six months when private buyers acquire the certificates, with the buyer offering the lowest interest rate winning a certificate.
A committee of the Peoria County Board approved a similar approach last month.
Taxes generally become delinquent the day after the payment deadline, with the tax sale occurring later. LaSalle payments were due July 15 and Sept. 9. Owners can pay overdue taxes through Nov. 9 to avoid the Nov. 10 sale at which the county will take possession of the certificates.
An owner loses a property when the tax certificate has been acquired and the owner doesn’t pay what’s owed within the redemption period.
Lower interest penalties can make it easier for owners to repay overdue taxes and keep their property.
The question is whether LaSalle County will pair that benefit with sound financial management.
The main trade-off is delayed tax revenue. Private buyers pay the delinquent taxes upfront, allowing the county to distribute that money to taxing districts. When the county holds the certificates, those districts must wait for owners to repay their debts or for properties to be sold.
Meanwhile, protecting owners’ equity is a legal necessity. In its 2023 decision in Tyler v. Hennepin County, the U.S. Supreme Court unanimously recognized a homeowner’s right to seek compensation when government retained property value exceeding her tax debt. Illinois enacted its legislative response in July 2026.
State law requires counties to cover court-ordered awards when the surplus-equity fund falls short.
Recommendations for LaSalle County:
- Explain how the upper-end estimate of $4 million in owner equity was calculated.
- Advertise auctions widely to attract competing bidders.
- Give former owners straightforward access to their surplus equity.
Lower penalties and protection of home equity are good reforms. Lasting property tax relief also requires controlling government spending, so families face more affordable bills in the first place.