NTLA Engaged in Illinois as Legislative Session Gets Underway

As the Illinois General Assembly convenes for its legislative session, the National Tax Lien Association is actively engaged with lawmakers, county treasurers, and key stakeholders across the state. This session, which begins in January and typically runs through late spring, is a critical one for anyone involved in delinquent property tax collection and tax lien investing.

Why does this matter so much right now? Because the legal and legislative landscape continues to shift in the wake of the U.S. Supreme Court’s decision in Tyler v. Hennepin County. While Tyler addressed surplus equity in tax foreclosure, it has sparked legislative activity nationwide as states and counties work to ensure their tax collection systems remain lawful, fair, and sustainable going forward.

Illinois is no exception.

Why Illinois Is On Our Radar

Illinois relies heavily on delinquent tax collection to fund essential public services including schools, public safety, and infrastructure. Tax lien sales play a vital role in ensuring that local governments receive the revenue they are owed without shifting the financial burden onto the overwhelming majority of taxpayers who pay on time.

At the same time, Illinois lawmakers are now considering how to address post-Tyler compliance in a way that protects property owners while preserving the integrity of the tax collection system. Getting this balance right is not easy. Poorly drafted legislation can create uncertainty, reduce participation, increase costs for counties, and ultimately weaken the system for everyone involved.

That is precisely why NTLA is engaged early and often.

Active Monitoring and Direct Outreach

This week, NTLA is reaching out directly to Illinois county treasurers to reaffirm our support and to let them know that we are tracking proposed legislation closely. Two bills are expected to be introduced this session. One proposal that has been circulated but not yet filed does not, in our view, offer a comprehensive or workable solution. Another proposal, developed with broader stakeholder input, appears more promising as a framework for thoughtful reform.

Our role is not to dictate outcomes, but to bring national perspective, practical experience, and real-world insight from other states that have already wrestled with similar issues. We want Illinois counties to avoid unintended consequences that could undermine revenue stability or invite costly litigation.

Why This Matters to NTLA Members

For investors, servicers, lenders, and industry professionals, legislative changes in a major tax lien state like Illinois can have ripple effects well beyond state borders. Reduced clarity or confidence in the system can mean fewer participants, lower yields, and greater operational risk. For counties, it can mean budget shortfalls and pressure to cut services or raise taxes on compliant taxpayers.

NTLA exists to help prevent those outcomes.

We are keeping our eyes open and our ears to the ground so our members do not have to. Throughout the Illinois session, we will continue monitoring developments, engaging with lawmakers and associations such as the Illinois County Treasurers’ Association and the Illinois Association of County Officials, and providing updates as warranted.

A Balanced Approach Going Forward

Strong delinquent tax collection systems protect fairness. They ensure that everyone contributes equitably to the cost of local government, while also providing safeguards for property owners facing genuine hardship. That balance is achievable, but only if legislation is informed by experience and grounded in practical realities.

NTLA will continue to advocate for policies that support local governments, protect homeowners, and preserve a healthy, transparent tax lien marketplace.

As always, we thank NTLA members for their membership and for the important role they play in funding communities across the country.