Memorandum
Date: November 18, 2025
To: The Honorable Lake County Board of Supervisors
From: Patrick Sullivan, Treasurer - Tax Collector
Jenavive Herrington, Auditor - Controller
Richard Ford, Assessor - Recorder
Subject: Consideration of an Ordinance Amending Article VIII. Of Chapter 18 Of the Lake County Code to Implement a Low Value Property Tax Exemption.
Executive Summary:
This hearing is to consider the approval of an ordinance that would exempt real property with an assessed value of less than $5,000.00 from property tax, as the cost of collections outweighs the benefit.
The Assessor-Recorder, Treasurer - Tax Collector, and Auditor - Controller’s office have all been in involved in discussions to develop a low value ordinance. There are approximately 8 counties remaining that have not passed a low value ordinance. Once the costs of delinquent enforcement is considered, the inventory of low value parcels in Lake County creates an untenable situation. Costs to take a property through the tax sale process can range from $500 - $700, in addition to staff time and resources that have to be redirected from other activities.
In a recent tax sale only 22% of properties offered received a bid. When looking at recent data, delinquent properties worth less than $5,000 constituted:
- Approximately 22.4% of parcels;
- Only 0.8% of total tax bill (taxes and direct charges);
- Only 0.25% of base tax billed;
- A current delinquency rate of 34%;
- 74% of tax defaulted inventory eligible for sale.
Even with the unsustainable pace of tax sales at 1,000 properties per year, the inventory of auction eligible properties under $5,000 continued to grow both numerically and proportionately. The workload associated with each tax sale spans 2 - 3 years, which has a compounding effect. In comparing 2022 to 2024, the number of 5+ year defaulted parcels increased from 74% to 78% of existing inventory, with an additional 401 parcels.
If the County does not pass a low value ordinance, ultimately this will result in massive volumes of deficit sales, as previously discussed. These sales lead to increased workloads for both the Auditor-Controller and Treasurer-Tax Collector’s offices, while at the same time realizing little value for the County and other entities. A low value ordinance set at $5,000 for secured taxes would bring our inventory in line with best practices throughout the State.
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Recommended Action: Approve an Ordinance Amending Article VIII. Of Chapter 18 Of the Lake County Code to Implement a Low Value Property Tax Exemption