PROP TX-GOVERNMENTAL UNITS

104th Regular Session Introduced by Mike Porfirio

SB 3642 lets Illinois townships receive same tax abatement and lien-voiding protections as other units when acquiring property, eliminating prior taxes and liens.

Rule 2-10 Committee/3rd Reading Deadline Established As May 15, 2026

Overview

Bill: SB 3642

Session: 104th General Assembly (Illinois)

Introduced: February 5, 2026 by Sen. Mike Porfirio (co-sponsor)

Committee assignment: Revenue (as of action history)

Purpose: Amend the Property Tax Code to extend certain tax abatement and tax-liens relief provisions to property acquired by a township, in addition to other governmental units.

What the bill would do (Key provisions)

1) Tax abatement upon acquisition by governmental units (Section 21-95)

The bill expands the existing framework for tax abatement after acquisition to explicitly include townships as eligible governmental units.

Current law already provides abatement effects when counties, municipalities, school districts, forest preserve districts, park districts, etc., acquire property through various means (foreclosure, judicial deeds, abatement programs, annexation-related transfers, etc.).

SB 3642 adds townships to this list of governmental units that, upon acquiring property via those methods, trigger the same abatement outcome: all due or unpaid property taxes and existing liens become null and void.

2) Notice and voiding of tax bills (Section 21-100)

When property is acquired by a township (under Section 21-95 as amended by SB 3642), the governing body must provide written notice to the county’s chief assessment officer, collector, and county clerk describing the property.

Upon receipt, the county collector and county clerk must promptly void the current and all prior unpaid taxes for the property.

The required record entry would state that taxes due and unpaid on the property are waived and nullified under Section 21-100, effectively extinguishing liens for those taxes.

Who/what would be affected

Townships in Illinois would gain parity with other local government units in terms of tax abatement and lien-voiding protections when acquiring property through specified channels.

Property owners and taxing authorities: The changes alter the treatment of unpaid taxes and liens on property acquired by townships, potentially reducing tax liabilities that precede or accompany acquisitions.

County assessors, collectors, and clerks: They would implement the procedural requirements for notice and voiding tax bills as described.

Procedural/Timeline notes

Effective date: The bill text provided does not specify an effective date; typically, Illinois bills include an effective date in a separate section if not immediate upon enactment. The text references existing code sections and their amended versions.

Action history:

Referred to Revenue (Feb 17, 2026)
Assigned to Committee (Feb 5, 2026; first reading)
Rule 2-10 deadlines set for advancement (April 24, 2026; May 15, 2026 third reading deadline)

Practical implications

By extending tax abatement and lien-voiding rights to townships, SB 3642 aims to streamline property acquisitions by townships and reduce ongoing tax encumbrances on such properties.

The provisions place an emphasis on prompt administrative action (notice to county officials and immediate voiding of taxes and liens) to finalize the transfer ownership without retained tax liabilities.

If you’d like, I can compare SB 3642 to the current statutory framework for other governmental units or provide a side-by-side chart of the changes.

Bill