Bill Text: IL HB4573 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, within 30 days after recording of a tax deed with respect to residential property, the tax deed grantee shall pay the surplus to the previous owner of the property described in the deed. Sets forth the procedures to calculate the surplus.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2024-04-26 - Added Chief Co-Sponsor Rep. Kevin Schmidt [HB4573 Detail]

Download: Illinois-2023-HB4573-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4573 Introduced , by Rep. Amy Elik SYNOPSIS AS INTRODUCED:
35 ILCS 200/22-77 new
35 ILCS 200/22-80
Amends the Property Tax Code. Provides that, within 30 days after recording of a tax deed with respect to residential property, the tax deed grantee shall pay the surplus to the previous owner of the property described in the deed. Sets forth the procedures to calculate the surplus.
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A BILL FOR
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AN ACT concerning property.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Section 22-80 and by adding Section 22-77 as follows:
(35 ILCS 200/22-77 new)
Sec. 22-77. Payment of surplus to the previous owner.
(a) This Section applies to tax deeds issued with respect
to residential property sold under this Code on or after the
effective date of this amendatory Act of the 103rd General
Assembly.
(b) Within 30 days after recording of the tax deed, the tax
deed grantee shall pay the surplus to the previous owner of the
property described in the deed. For the purposes of this
Section, the surplus shall be calculated as follows:
(1) If the property has been sold since recording of
the deed, the surplus shall be equal to the amount
received from the sale, minus (i) the amount that would
have been needed to redeem the property; (ii) the amount
needed to pay all encumbrances on the property; and (iii)
an administrative fee of $500, which may be retained by
the grantee to offset the costs incurred in obtaining the
deed.

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(2) If the property has not been sold since recording
of the deed, the surplus shall be equal to the fair market
value of the property on the date the tax deed was issued,
as determined by the chief county assessment officer,
minus (i) the amount that would have been needed to redeem
the property; (ii) the amount needed to pay all
encumbrances on the property; and (iii) an administrative
fee of $500, which may be retained by the grantee to offset
the costs incurred in obtaining the deed.
(c) Any civil action or proceeding to enforce the
provisions of this Section against any person may be
instituted in the circuit court for the county in which the
property is located.
(35 ILCS 200/22-80)
Sec. 22-80. Order of court setting aside tax deed;
payments to holder of deed.
(a) Any order of court vacating an order directing the
county clerk to issue a tax deed based upon a finding that the
property was not subject to taxation or special assessment, or
that the taxes or special assessments had been paid prior to
the sale of the property, or that the tax sale was otherwise
void, shall declare the tax sale to be a sale in error pursuant
to Section 21-310 of this Act. The order shall direct the
county collector to refund to the tax deed grantee or his or
her successors and assigns (or, if a tax deed has not yet

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issued, the holder of the certificate) the following amounts:
(1) all taxes and special assessments purchased, paid,
or redeemed by the tax purchaser or his or her assignee, or
by the tax deed grantee or his or her successors and
assigns, whether before or after entry of the order for
tax deed, with interest at the rate of 1% per month from
the date each amount was paid until the date of payment
pursuant to this Section;
(2) all costs paid and posted to the judgment record
and not included in paragraph (1) of this subsection (a);
and
(3) court reporter fees for the hearing on the
application for tax deed and transcript thereof, cost of
certification of tax deed order, cost of issuance of tax
deed, and cost of recording of tax deed; and .
(4) any surplus paid by the tax deed grantee or tax
purchaser under Section 22-77.
(b) Except in those cases described in subsection (a) of
this Section, and unless the court on motion of the tax deed
petitioner extends the redemption period to a date not later
than 3 years from the date of sale, any order of court finding
that an order directing the county clerk to issue a tax deed
should be vacated shall direct the party who successfully
contested the entry of the order to pay to the tax deed grantee
or his or her successors and assigns (or, if a tax deed has not
yet issued, the holder of the certificate) within 90 days

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