HB 6261 Summary

• Adds Section 78t to the General Property Tax Act to allow persons with interests in tax-foreclosed properties to claim shares of remaining proceeds after the property is sold.

• Requires claimants to file a notice of intention with the circuit court within 90 days of either the property's vesting in the governmental unit (if on or after the act's effective date) or within 90 days of the act's effective date (if vesting occurred within 2 years prior).

• Mandates the foreclosing governmental unit send a responsive notice by certified mail to each claimant within 60 days, detailing the property information, sale price, minimum bid, and calculation of remaining proceeds or shortfalls after deducting costs.

• Allows claimants to file a motion with the circuit court to claim remaining proceeds, with deadlines of April 15 following the year of sale (for timely initial claims) or 90 days after receiving the responsive notice (for retroactive claims).

• Requires the court to hold a hearing to determine each claimant's priority and interest value, allocate remaining proceeds accordingly, and order payment within 30 days; claimants bear the burden of proving their interest.