Bill Aims to Close Loopholes in Property Tax Sales

Clip: 5/30/2023 | 2m 21sVideo has Closed Captions

The legislation is designed to revamp Cook County’s property tax scavenger sale system.

05/30/2023 | Rating NR

Bill Aims to Close Loopholes in Property Tax Sales

Clip: 5/30/2023 | 2m 21sVideo has Closed Captions

The legislation is designed to revamp Cook County’s property tax scavenger sale system.

Lawmakers want to stop a system that has helped fuel disinvestment in majority Black and Latino communities for generations.

05/30/2023 | Rating NR

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WHETHER IT'S ART OR NOT.

BUT IT COULD BE ART OR AN IDEA, I THINK THAT'S THE TYPE OF THINGS THAT CHANGE THE WORLD.

>>> LEGISLATION DESIGNED TO CLOSE LOOPHOLES IN COOK COUNTY'S PROPERTY TAX SYSTEM IS HEADED TO GOVERNOR JB PRITZKER'S DESK.

THE BILL AIMS TO STOP A SYSTEM THAT HELPS FUEL DISINVESTMENT AND MAJORITY BLACK AND LATINO COMMUNITIES.

WTTW'S NEWS REPORTER HEATHER SHARON JOINS US NOW WITH MORE.

THIS LEGISLATION IS THE RESULT OF A CONCERTED EFFORT BY COOK COUNTY TREASURER MARIA PAPPAS'S OFFICE TO REVAMP THE SYSTEM THAT WAS DESIGNED TO RETURN DISTRESSED PROPERTIES WITH MOUNTAINS OF DEBT TO PRODUCTIVE USE.

WHAT'S CHANGED?

>> WHEN YOU DON'T PAY YOUR PROPERTY TAXES, THE INTEREST RATE ON THAT RISES TO 18% A YEAR.

THIS LEGISLATION WOULD SLASH THAT IN HALF TO 9%.

MARIA PAPPAS'S OFFICE SAYS THAT WILL SAVE COOK COUNTY HOMEOWNERS BETWEEN 25 AND $35 MILLION A YEAR, A HUGE SAVINGS THAT WILL HELP PEOPLE KEEP THEIR PROPERTIES AND THEIR HOMES.

>> LEGISLATION IS ALSO SET TO REVAMP COOK COUNTY'S PROPERTY TAX SCAVENGER SALE.

WHAT ARE WE LOOKING FOR THERE?

>> IF YOU DON'T PAY YOUR PROPERTY TAXES FOR THREE YEARS, THE COUNTY CAN AUCTION OFF YOUR PROPERTY.

THEY HELD THOSE SALES EVERY TWO YEARS BUT PROPERTIES THAT GO UP FOR AUCTION IN THOSE SALES ARE PURCHASED AND BROUGHT BACK TO PRODUCTIVE USE, SO THIS LEGISLATION WOULD GIVE COOK COUNTY MORE ABILITY TO TAKE CONTROL OF THE PROPERTIES THAT DON'T SELL AND GET THEM BACK ON THE TAX ROLLS AND TO PRODUCTIVE USE.

>> THE BILL IS ALSO AIMED AT LOOPHOLES THAT ALLOW HEDGE FUNDS TO TAKE ADVANTAGE OF UNPAID TAX DEBT AT THE EXPENSE OF BLACK AND LATINO HOMEOWNERS.

HOW DOES IT DO THAT?

>> EVERY YEAR UNPAID TAX DEBT GOES UP FOR ANOTHER AUCTION AND BIG HEDGE FUNDS AND OTHER INVESTMENT FIRMS, THEY BUY THAT DEBT, AND PUT LEANS ON PEOPLE'S HOUSES.

THAT IS LUCRATIVE FOR THEM.

THEY CAN EARN AS MUCH AS 54% OVER THE NEXT THREE YEARS SO THEN THEY DON'T ACTUALLY HAVE TO COMPLETE THE SALE.

THEY CAN JUST SORT OF POINT TO AN ERROR, SOMETIMES CLERICAL, AND GET OUT OF THE WHOLE DEAL, AND TAKE THOSE SAVINGS AND INTEREST PAYMENTS WITH THEM.