The law that requires County Treasurers to allow people to pay off delinquent property taxes at a Tax Sale in which people bid on the interest rate to be charged every six months of non-payment has been ruled unconstitutional by Federal District Judge Matthew F. Kennelly.
The argument to which the Judge agreed was that the difference between the back taxes paid by the “tax buyer” (lender) and the value of the property whose deed the lender eventually obtained “violated both the 5th and 8th amendments of the Constitution related to unfair ‘takings’ and excessive fines,” as the Chicago Tribune reported.
Although it was the tax buyers who received the difference between the tax paid and the value of the home, the Judge seems to have ruled that Cook County is responsible for coming up with the money.
Putting on my former McHenry County Treasurer hat, that seems nonsensical since county governments have not benefited from the system.
The other 101 Illinois counties have the same problem as Cook.
If the Judge rules Cook County has to come up with the money, I wonder if its State’s Attorney will sue the tax buyers who ended up with the windfalls.
