Bill Amendment: IL HB3421 | 2025-2026 | 104th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PROP TX-EQUITY FUND
Status: 2025-04-11 - House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB3421 Detail]
Download: Illinois-2025-HB3421-House_Amendment_001.html
Bill Title: PROP TX-EQUITY FUND
Status: 2025-04-11 - House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB3421 Detail]
Download: Illinois-2025-HB3421-House_Amendment_001.html
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| 1 | AMENDMENT TO HOUSE BILL 3421 | ||||||
| 2 | AMENDMENT NO. ______. Amend House Bill 3421 by replacing | ||||||
| 3 | everything after the enacting clause with the following:
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| 4 | "Section 3. The State Finance Act is amended by adding | ||||||
| 5 | Section 5.1030 as follows:
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| 6 | (30 ILCS 105/5.1030 new) | ||||||
| 7 | Sec. 5.1030. The Equity Fund.
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| 8 | Section 5. The Property Tax Code is amended by changing | ||||||
| 9 | Sections 21-90, 21-295, 21-305, 22-40, and 22-55 and by adding | ||||||
| 10 | Sections 22-100 and 22-101 as follows:
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| 11 | (35 ILCS 200/21-90) | ||||||
| 12 | Sec. 21-90. Purchase and sale by county; distribution of | ||||||
| 13 | proceeds. | ||||||
| 14 | (a) When any property is offered for sale under any of the | ||||||
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| 1 | provisions of this Code, the county board of the county in | ||||||
| 2 | which the property is located, in its discretion, may bid, or, | ||||||
| 3 | in the case of forfeited property, may apply to purchase it or | ||||||
| 4 | otherwise acquire the tax lien or certificate in the name of | ||||||
| 5 | the county as trustee for all taxing districts having an | ||||||
| 6 | interest in the property's taxes or special assessments for | ||||||
| 7 | the nonpayment of which the property is sold. The presiding | ||||||
| 8 | officer of the county board, with the advice and consent of the | ||||||
| 9 | board, may appoint on its behalf some officer, person, or | ||||||
| 10 | entity to attend such sales, bid on tax liens or certificates, | ||||||
| 11 | and act on behalf of the county when exercising its authority | ||||||
| 12 | under this Section. The county shall apply on the bid or | ||||||
| 13 | purchase the unpaid taxes and special assessments due upon the | ||||||
| 14 | property. No cash need be paid. | ||||||
| 15 | (b) The county, as trustee for all taxing districts having | ||||||
| 16 | an interest in the property's taxes or special assessments, | ||||||
| 17 | shall be the designated holder of all tax liens or | ||||||
| 18 | certificates that are forfeited to the State or county. No | ||||||
| 19 | cash need be paid for the unpaid taxes and special assessments | ||||||
| 20 | due on the property. All fees due under Section 21-295 shall be | ||||||
| 21 | paid pursuant to that Section forfeited tax lien or | ||||||
| 22 | certificate. | ||||||
| 23 | (c) For any tax lien or certificate acquired under | ||||||
| 24 | subsection (a) or (b) of this Section, the county may take | ||||||
| 25 | steps necessary to acquire title to the property and may | ||||||
| 26 | manage and operate the property, including, but not limited | ||||||
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| 1 | to, mowing of grass, removal of nuisance greenery, removal of | ||||||
| 2 | garbage, waste, debris or other materials, or the demolition, | ||||||
| 3 | repair, or remediation of unsafe structures. When a county, or | ||||||
| 4 | other taxing district within the county, is a petitioner for a | ||||||
| 5 | tax deed, no filing fee shall be required. When a county or | ||||||
| 6 | other taxing district within the county is the petitioner for | ||||||
| 7 | a tax deed, one petition may be filed including all parcels | ||||||
| 8 | that are tax delinquent within the county or taxing district, | ||||||
| 9 | and any publication made under Section 22-20 of this Code may | ||||||
| 10 | combine all such parcels within a single notice. The notice | ||||||
| 11 | may include the street address as listed on the most recent | ||||||
| 12 | available tax bills, if available, and shall list the Property | ||||||
| 13 | Index Number of the parcels for informational purposes. The | ||||||
| 14 | county, as tax creditor and as trustee for other tax | ||||||
| 15 | creditors, or other taxing district within the county, shall | ||||||
| 16 | not be required to allege and prove that all taxes and special | ||||||
| 17 | assessments which become due and payable after the sale or | ||||||
| 18 | forfeiture to the county have been paid nor shall the county be | ||||||
| 19 | required to pay the subsequently accruing taxes or special | ||||||
| 20 | assessments at any time. The county board or its designee may | ||||||
| 21 | prohibit the county collector from including the property in | ||||||
| 22 | the tax sale of one or more subsequent years. The lien of taxes | ||||||
| 23 | and special assessments which become due and payable after a | ||||||
| 24 | sale to a county shall merge in the fee title of the county, or | ||||||
| 25 | other taxing district within the county, on the issuance of a | ||||||
| 26 | deed. | ||||||
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| 1 | The county may sell any property acquired with authority | ||||||
| 2 | provided in this Section, or assign any tax certificate to any | ||||||
| 3 | party, including, but not limited to, taxing districts, | ||||||
| 4 | municipalities, land banks created pursuant to Illinois law, | ||||||
| 5 | or non-profit developers focused on constructing affordable | ||||||
| 6 | housing, subject to Sections 21-295 through 21-305. | ||||||
| 7 | The assigned tax certificate shall be void with no further | ||||||
| 8 | rights given to the assignee, including no right to refund or | ||||||
| 9 | reimbursement, if a tax deed has not been recorded within 4 | ||||||
| 10 | years after the date of the assignment unless a court extends | ||||||
| 11 | the assignment period as provided in this Section. Upon a | ||||||
| 12 | motion by the assignee, a court may toll the 4-year deadline | ||||||
| 13 | for a specified period of time if the court finds the assignee | ||||||
| 14 | is prevented from obtaining or recording a deed by injunction | ||||||
| 15 | or order of any court, by the refusal or inability of any court | ||||||
| 16 | to act upon the application for a tax deed, by a municipality's | ||||||
| 17 | refusal to issue necessary transfer stamps or approvals for | ||||||
| 18 | recording, or by the refusal of the clerk to execute the deed. | ||||||
| 19 | If an assigned tax certificate is void under this Section, it | ||||||
| 20 | shall be forfeited to the county and held as a valid | ||||||
| 21 | certificate of sale in the county's name pursuant to this | ||||||
| 22 | Section 21-90. The proceeds of any sale or assignment under | ||||||
| 23 | this Section, less all costs of the county incurred in the | ||||||
| 24 | acquisition, operation, maintenance, and sale of the property | ||||||
| 25 | or assignment of the tax certificate, including all costs | ||||||
| 26 | associated with county staff and overhead used to perform the | ||||||
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| 1 | duties of the trustee set forth in this Section, shall be | ||||||
| 2 | distributed to the taxing districts in proportion to their | ||||||
| 3 | respective interests therein. | ||||||
| 4 | Under Sections 21-110, 21-115, 21-120, and 21-190, a | ||||||
| 5 | county may bid or purchase only in the absence of other | ||||||
| 6 | bidders. | ||||||
| 7 | (Source: P.A. 102-363, eff. 1-1-22; 103-555, eff. 1-1-24.)
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| 8 | (35 ILCS 200/21-295) | ||||||
| 9 | Sec. 21-295. Creation of indemnity fund. | ||||||
| 10 | (a) In counties of less than 3,000,000 inhabitants, each | ||||||
| 11 | person purchasing any property at a sale under this Code shall | ||||||
| 12 | pay to the County Collector, prior to the issuance of any | ||||||
| 13 | certificate of purchase, a nonrefundable an indemnity fee set | ||||||
| 14 | by the county collector of not more than $20 for each item | ||||||
| 15 | purchased. A like nonrefundable sum shall be paid for each | ||||||
| 16 | year that all or a portion of subsequent taxes are paid by the | ||||||
| 17 | tax purchaser and posted to the tax judgment, sale, redemption | ||||||
| 18 | and forfeiture record where the underlying certificate of | ||||||
| 19 | purchase is recorded. | ||||||
| 20 | (a-5) In counties of 3,000,000 or more inhabitants, each | ||||||
| 21 | person purchasing property at a sale under this Code shall pay | ||||||
| 22 | to the County Collector a nonrefundable fee of $200 $80 for | ||||||
| 23 | each item purchased plus an additional nonrefundable fee sum | ||||||
| 24 | equal to 3% 5% of the taxes, interest, and penalties paid under | ||||||
| 25 | Section 21-240. In these counties, the certificate holder | ||||||
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| 1 | shall also pay to the County Collector a nonrefundable fee of | ||||||
| 2 | $150 $80 for each year that all or a portion of subsequent | ||||||
| 3 | taxes are paid by the tax purchaser and posted to the tax | ||||||
| 4 | judgment, sale, redemption, and forfeiture record. The changes | ||||||
| 5 | to this subsection made by this amendatory Act of the 91st | ||||||
| 6 | General Assembly are not a new enactment, but declaratory of | ||||||
| 7 | existing law. | ||||||
| 8 | (b) The amount paid prior to issuance of the certificate | ||||||
| 9 | of purchase pursuant to subsection (a) or (a-5) shall be | ||||||
| 10 | included in the purchase price of the property in the | ||||||
| 11 | certificate of purchase and all amounts paid under this | ||||||
| 12 | Section shall be included in the amount required to redeem | ||||||
| 13 | under Section 21-355, except for any the nonrefundable $80 fee | ||||||
| 14 | for each item purchased at the tax sale as provided in this | ||||||
| 15 | Section. Except as otherwise provided in subsection (b) of | ||||||
| 16 | Section 21-300, all nonrefundable fees money received under | ||||||
| 17 | subsection (a) or (a-5) shall be paid by the Collector to the | ||||||
| 18 | County Treasurer of the County in which the land is situated, | ||||||
| 19 | for the purpose of an indemnity fund. The County Treasurer, as | ||||||
| 20 | trustee of that fund, shall invest all of that fund, principal | ||||||
| 21 | and income, in his or her hands from time to time, if not | ||||||
| 22 | immediately required for payments of indemnities under | ||||||
| 23 | subsection (a) of Section 21-305, in investments permitted by | ||||||
| 24 | the Illinois State Board of Investment under Article 22A of | ||||||
| 25 | the Illinois Pension Code. The county collector shall report | ||||||
| 26 | annually to the county clerk on the condition and income of the | ||||||
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| 1 | fund. The indemnity fund shall be held to satisfy judgments | ||||||
| 2 | obtained against the County Treasurer, as trustee of the fund. | ||||||
| 3 | No payment shall be made from the fund, except upon a judgment | ||||||
| 4 | of the court which ordered the issuance of a tax deed. | ||||||
| 5 | (Source: P.A. 100-1070, eff. 1-1-19; 101-659, eff. 3-23-21.)
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| 6 | (35 ILCS 200/21-305) | ||||||
| 7 | Sec. 21-305. Payments from Indemnity Fund. | ||||||
| 8 | (a) Any owner of property sold under any provision of this | ||||||
| 9 | Code who sustains loss or damage by reason of the issuance of a | ||||||
| 10 | tax deed under Section 21-445 or 22-40 and who is barred or is | ||||||
| 11 | in any way precluded from bringing an action for the recovery | ||||||
| 12 | of the property shall have the right to indemnity for the loss | ||||||
| 13 | or damage sustained, limited as follows: | ||||||
| 14 | (1) An owner who resided on property that contained 4 | ||||||
| 15 | or less dwelling units on the last day of the period of | ||||||
| 16 | redemption and who is equitably entitled to compensation | ||||||
| 17 | for the loss or damage sustained has the right to | ||||||
| 18 | indemnity. An equitable indemnity award shall be limited | ||||||
| 19 | to the fair cash value of the property as of the date the | ||||||
| 20 | tax deed was issued less any mortgages or liens on the | ||||||
| 21 | property, and the award will not exceed $99,000. The Court | ||||||
| 22 | shall liberally construe this equitable entitlement | ||||||
| 23 | standard to provide compensation wherever, in the | ||||||
| 24 | discretion of the Court, the equities warrant the action. | ||||||
| 25 | An owner of a property that contained 4 or less | ||||||
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| 1 | dwelling units who requests an award in excess of $99,000 | ||||||
| 2 | must prove that the loss of his or her property was not | ||||||
| 3 | attributable to his or her own fault or negligence before | ||||||
| 4 | an award in excess of $99,000 will be granted. | ||||||
| 5 | (2) An owner who sustains the loss or damage of any | ||||||
| 6 | property occasioned by reason of the issuance of a tax | ||||||
| 7 | deed, without fault or negligence of his or her own, has | ||||||
| 8 | the right to indemnity limited to the fair cash value of | ||||||
| 9 | the property less any mortgages or liens on the property. | ||||||
| 10 | In determining the existence of fault or negligence, the | ||||||
| 11 | court shall consider whether the owner exercised ordinary | ||||||
| 12 | reasonable diligence under all of the relevant | ||||||
| 13 | circumstances. | ||||||
| 14 | (3) In determining the fair cash value of property | ||||||
| 15 | less any mortgages or liens on the property, the fair cash | ||||||
| 16 | value shall be reduced by the principal amount of all | ||||||
| 17 | taxes paid by the tax purchaser or his or her assignee | ||||||
| 18 | before the issuance of the tax deed. | ||||||
| 19 | (4) If an award made under paragraph (1) or (2) is | ||||||
| 20 | subject to a reduction by the amount of an outstanding | ||||||
| 21 | mortgage or lien on the property, other than the principal | ||||||
| 22 | amount of all taxes paid by the tax purchaser or his or her | ||||||
| 23 | assignee before the issuance of the tax deed and the | ||||||
| 24 | petitioner would be personally liable to the mortgagee or | ||||||
| 25 | lienholder for all or part of that reduction amount, the | ||||||
| 26 | court shall order an additional indemnity award to be paid | ||||||
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| 1 | directly to the mortgagee or lienholder sufficient to | ||||||
| 2 | discharge the petitioner's personal liability. The court, | ||||||
| 3 | in its discretion, may order the joinder of the mortgagee | ||||||
| 4 | or lienholder as an additional party to the indemnity | ||||||
| 5 | action. | ||||||
| 6 | (b) Indemnity fund; subrogation. | ||||||
| 7 | (1) Any person claiming indemnity hereunder shall | ||||||
| 8 | petition the Court which ordered the tax deed to issue, | ||||||
| 9 | shall name the County Treasurer, as Trustee of the | ||||||
| 10 | indemnity fund, as defendant to the petition, and shall | ||||||
| 11 | ask that judgment be entered against the County Treasurer, | ||||||
| 12 | as Trustee, in the amount of the indemnity sought. The | ||||||
| 13 | provisions of the Civil Practice Law shall apply to | ||||||
| 14 | proceedings under the petition, except that neither the | ||||||
| 15 | petitioner nor County Treasurer shall be entitled to trial | ||||||
| 16 | by jury on the issues presented in the petition. The Court | ||||||
| 17 | shall liberally construe this Section to provide | ||||||
| 18 | compensation wherever in the discretion of the Court the | ||||||
| 19 | equities warrant such action. | ||||||
| 20 | (2) The County Treasurer, as Trustee of the indemnity | ||||||
| 21 | fund, shall be subrogated to all parties in whose favor | ||||||
| 22 | judgment may be rendered against him or her, and by third | ||||||
| 23 | party complaint may bring in as a defendant any person, | ||||||
| 24 | other than the tax deed grantee and its successors in | ||||||
| 25 | title, not a party to the action who is or may be liable to | ||||||
| 26 | him or her, as subrogee, for all or part of the | ||||||
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| 1 | petitioner's claim against him or her. | ||||||
| 2 | (c) Any contract involving the proceeds of a judgment for | ||||||
| 3 | indemnity under this Section, between the tax deed grantee or | ||||||
| 4 | its successors in title and the indemnity petitioner or his or | ||||||
| 5 | her successors, shall be in writing. In any action brought | ||||||
| 6 | under Section 21-305, the Collector shall be entitled to | ||||||
| 7 | discovery regarding, but not limited to, the following: | ||||||
| 8 | (1) the identity of all persons beneficially | ||||||
| 9 | interested in the contract, directly or indirectly, | ||||||
| 10 | including at least the following information: the names | ||||||
| 11 | and addresses of any natural persons; the place of | ||||||
| 12 | incorporation of any corporation and the names and | ||||||
| 13 | addresses of its shareholders unless it is publicly held; | ||||||
| 14 | the names and addresses of all general and limited | ||||||
| 15 | partners of any partnership; the names and addresses of | ||||||
| 16 | all persons having an ownership interest in any entity | ||||||
| 17 | doing business under an assumed name, and the county in | ||||||
| 18 | which the assumed business name is registered; and the | ||||||
| 19 | nature and extent of the interest in the contract of each | ||||||
| 20 | person identified; | ||||||
| 21 | (2) the time period during which the contract was | ||||||
| 22 | negotiated and agreed upon, from the date of the first | ||||||
| 23 | direct or indirect contact between any of the contracting | ||||||
| 24 | parties to the date of its execution; | ||||||
| 25 | (3) the name and address of each natural person who | ||||||
| 26 | took part in negotiating the contract, and the identity | ||||||
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| 1 | and relationship of the party that the person represented | ||||||
| 2 | in the negotiations; and | ||||||
| 3 | (4) the existence of an agreement for payment of | ||||||
| 4 | attorney's fees by or on behalf of each party. | ||||||
| 5 | Any information disclosed during discovery may be subject | ||||||
| 6 | to protective order as deemed appropriate by the court. The | ||||||
| 7 | terms of the contract shall not be used as evidence of value. | ||||||
| 8 | (d) A petition of indemnity under this Section must be | ||||||
| 9 | filed within 10 years after the date the tax deed was issued. | ||||||
| 10 | (e) No payment from the indemnity fund shall be made if an | ||||||
| 11 | application for Equity Fund Payment is filed or pending in any | ||||||
| 12 | county of this State. | ||||||
| 13 | (Source: P.A. 97-557, eff. 7-1-12.)
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| 14 | (35 ILCS 200/22-40) | ||||||
| 15 | Sec. 22-40. Issuance of deed; possession. | ||||||
| 16 | (a) To obtain an order for issuance of tax deed, the | ||||||
| 17 | petitioner must provide sufficient evidence that: | ||||||
| 18 | (1) the redemption period has expired and the property | ||||||
| 19 | has not been redeemed; | ||||||
| 20 | (2) all taxes and special assessments which became due | ||||||
| 21 | and payable subsequent to the sale have been paid, unless | ||||||
| 22 | the county or its agent, as trustee pursuant to Section | ||||||
| 23 | 21-90, is the petitioner; | ||||||
| 24 | (3) all forfeitures and sales which occur subsequent | ||||||
| 25 | to the sale are paid or redeemed, unless the county or its | ||||||
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| 1 | agent, as trustee pursuant to Section 21-90, is the | ||||||
| 2 | petitioner; | ||||||
| 3 | (4) the notices required by law have been given, and | ||||||
| 4 | all advancements of public funds under the police power | ||||||
| 5 | made by a county, city, village, or town under Section | ||||||
| 6 | 22-35 have been paid; and | ||||||
| 7 | (5) the petitioner has complied with all the | ||||||
| 8 | provisions of law entitling him or her to a deed. | ||||||
| 9 | Upon receipt of sufficient evidence of the requirements | ||||||
| 10 | under this subsection (a), the court shall find that the | ||||||
| 11 | petitioner complied with those requirements and shall enter an | ||||||
| 12 | order directing the county clerk, on the production of the tax | ||||||
| 13 | certificate and a certified copy of the order, to issue to the | ||||||
| 14 | purchaser or its assignee a tax deed. The court shall insist on | ||||||
| 15 | strict compliance with Section 22-10 through 22-25. Prior to | ||||||
| 16 | the entry of an order directing the issuance of a tax deed, the | ||||||
| 17 | petitioner shall furnish the court with a report of | ||||||
| 18 | proceedings of the evidence received on the application for | ||||||
| 19 | tax deed and the report of proceedings shall be filed and made | ||||||
| 20 | a part of the court record. | ||||||
| 21 | (b) Except as provided in subsection (e), if taxes for | ||||||
| 22 | years prior to the year or years sold are or become delinquent | ||||||
| 23 | subsequent to the date of sale, the court shall find that the | ||||||
| 24 | lien of those delinquent taxes has been or will be merged into | ||||||
| 25 | the tax deed grantee's title if the court determines that the | ||||||
| 26 | tax deed grantee or any prior holder of the certificate of | ||||||
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| 1 | purchase, or any person or entity under common ownership or | ||||||
| 2 | control with any such grantee or prior holder of the | ||||||
| 3 | certificate of purchase, was at no time the holder of any | ||||||
| 4 | certificate of purchase for the years sought to be merged. If | ||||||
| 5 | delinquent taxes are merged into the tax deed pursuant to this | ||||||
| 6 | subsection, the court shall enter an order declaring which | ||||||
| 7 | specific taxes have been or will be merged into the tax deed | ||||||
| 8 | title and directing the county treasurer and county clerk to | ||||||
| 9 | reflect that declaration in the warrant and judgment records; | ||||||
| 10 | provided, that no such order shall be effective until a tax | ||||||
| 11 | deed has been issued and timely recorded. Nothing contained in | ||||||
| 12 | this Section shall relieve any owner liable for delinquent | ||||||
| 13 | property taxes under this Code from the payment of the taxes | ||||||
| 14 | that have been merged into the title upon issuance of the tax | ||||||
| 15 | deed. | ||||||
| 16 | (c) The county clerk is entitled to a fee of $10 in | ||||||
| 17 | counties of 3,000,000 or more inhabitants and $5 in counties | ||||||
| 18 | with less than 3,000,000 inhabitants for the issuance of the | ||||||
| 19 | tax deed, with the exception of deeds issued to the county | ||||||
| 20 | pursuant to its authority under Section 21-90. The clerk may | ||||||
| 21 | not include in a tax deed more than one property as listed, | ||||||
| 22 | assessed and sold in one description, except in cases where | ||||||
| 23 | several properties are owned by one person. | ||||||
| 24 | Upon application, the court shall, enter an order to place | ||||||
| 25 | the tax deed grantee or the grantee's successor in interest in | ||||||
| 26 | possession of the property and may enter orders and grant | ||||||
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| 1 | relief as may be necessary or desirable to maintain the | ||||||
| 2 | grantee or the grantee's successor in interest in possession. | ||||||
| 3 | (d) The court shall retain jurisdiction to enter orders | ||||||
| 4 | pursuant to subsections (b) and (c) of this Section and | ||||||
| 5 | pursuant to Sections 22-100 and 22-101. Public Act 92-223 and | ||||||
| 6 | Public Act 95-477 . This amendatory Act of the 92nd General | ||||||
| 7 | Assembly and this amendatory Act of the 95th General Assembly | ||||||
| 8 | shall be construed as being declarative of existing law and | ||||||
| 9 | not as a new enactment. | ||||||
| 10 | (e) Prior to the issuance of any tax deed under this | ||||||
| 11 | Section, the petitioner must redeem all taxes and special | ||||||
| 12 | assessments on the property that are subject to a pending tax | ||||||
| 13 | petition filed by a county or its assignee pursuant to Section | ||||||
| 14 | 21-90. | ||||||
| 15 | (f) If, for any reason, a purchaser fails to obtain an | ||||||
| 16 | order for tax deed within the required time period and no sale | ||||||
| 17 | in error was granted or redemption paid, then the certificate | ||||||
| 18 | shall be forfeited to the county, as trustee, pursuant to | ||||||
| 19 | Section 21-90. | ||||||
| 20 | (Source: P.A. 103-555, eff. 1-1-24; revised 8-5-24.)
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| 21 | (35 ILCS 200/22-55) | ||||||
| 22 | Sec. 22-55. Tax deeds to convey merchantable title. This | ||||||
| 23 | Section shall be liberally construed so that tax deeds shall | ||||||
| 24 | convey merchantable title. In the event the property has been | ||||||
| 25 | taken by eminent domain under the Eminent Domain Act, the tax | ||||||
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| 1 | purchaser shall be entitled to the award which is the | ||||||
| 2 | substitute for the property. Tax deeds issued pursuant to this | ||||||
| 3 | Section are subject to Section 22-70. Nothing in Section | ||||||
| 4 | 22-100 or Section 22-101 shall affect the merchantable title | ||||||
| 5 | conveyed upon the recording of the tax deed. This amendatory | ||||||
| 6 | Act of the 104th General Assembly shall be construed as being | ||||||
| 7 | declarative of existing law and not as a new enactment. | ||||||
| 8 | (Source: P.A. 94-1055, eff. 1-1-07.)
| ||||||
| 9 | (35 ILCS 200/22-100 new) | ||||||
| 10 | Sec. 22-100. Equity Fund collection. | ||||||
| 11 | (a) Each county treasurer shall transmit to the State | ||||||
| 12 | Treasurer all Equity Fund payments paid to the county | ||||||
| 13 | treasurer under this Section and in the county treasurer's | ||||||
| 14 | possession after each tax sale, with a report under oath | ||||||
| 15 | identifying the total amount of certificates of purchase sold | ||||||
| 16 | and the amount collected for the Equity Fund from each | ||||||
| 17 | certificate. Those amounts and the report shall be transmitted | ||||||
| 18 | to and received by the State Treasurer by the 10th day after | ||||||
| 19 | each tax sale. At the same time, a copy of the report shall be | ||||||
| 20 | furnished to the Attorney General. The report shall be in a | ||||||
| 21 | form and contain the particulars as the State Treasurer may | ||||||
| 22 | prescribe. The State Treasurer shall give the county treasurer | ||||||
| 23 | a receipt for the amount transmitted to the State Treasurer. | ||||||
| 24 | Except as otherwise provided in this Section, if any county | ||||||
| 25 | treasurer fails to pay to the State Treasurer all amounts that | ||||||
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| 1 | may be due and payable under this Section as required by this | ||||||
| 2 | Section, the county treasurer shall pay to the State | ||||||
| 3 | Treasurer, as a penalty, a sum of money equal to the interest | ||||||
| 4 | on the amounts not paid at the rate of 1% per month from the | ||||||
| 5 | time those amounts are due by the county treasurer until those | ||||||
| 6 | amounts are paid. The sureties upon the official bond of the | ||||||
| 7 | county treasurer shall be security for the payment of the | ||||||
| 8 | penalty. The penalty under this Section may be recovered in a | ||||||
| 9 | civil action against the county treasurer and his or her | ||||||
| 10 | sureties, in the name of the People of the State of Illinois, | ||||||
| 11 | in the circuit court within the county wherein the county | ||||||
| 12 | treasurer is resident; and the penalty, when recovered, shall | ||||||
| 13 | be paid into the State treasury. The civil action to recover | ||||||
| 14 | the penalty shall be brought by the State Treasurer within 10 | ||||||
| 15 | days after the failure of the county treasurer to pay to the | ||||||
| 16 | State Treasurer any amounts collected by the county treasurer | ||||||
| 17 | within the time required by this Section. Failure to bring the | ||||||
| 18 | action within that time shall not prevent the bringing of the | ||||||
| 19 | action thereafter. It is the duty of the State Treasurer to | ||||||
| 20 | make necessary and proper investigation to determine what | ||||||
| 21 | amounts should be paid under this Section. | ||||||
| 22 | The State Treasurer may waive penalties imposed by | ||||||
| 23 | subsection (a) of this Section on a case-by-case basis if the | ||||||
| 24 | State Treasurer finds that imposing penalties would be | ||||||
| 25 | unreasonable or unnecessarily burdensome because the delay in | ||||||
| 26 | payment was due to an incident caused by the operation of an | ||||||
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| 1 | extraordinary force, including, but not limited to, the | ||||||
| 2 | occurrence of a natural disaster, that cannot be foreseen, | ||||||
| 3 | that cannot be avoided by the exercise of due care, and for | ||||||
| 4 | which no person can be held liable. | ||||||
| 5 | The total amount collected from the county treasurers | ||||||
| 6 | shall be deposited into the Equity Fund, a special fund | ||||||
| 7 | created in the State treasury. | ||||||
| 8 | Moneys in the Equity Fund shall be expended exclusively | ||||||
| 9 | for the purpose of paying the amount ordered for equity | ||||||
| 10 | surplus payments to Illinois property owners who have lost | ||||||
| 11 | their property by a recorded tax deed, except that, whenever | ||||||
| 12 | the State Treasurer determines that moneys in the Equity Fund | ||||||
| 13 | exceed the amount required for the purpose of paying equity | ||||||
| 14 | surplus payments resulting from property ownership being | ||||||
| 15 | divested by tax deed, the State Treasurer may transfer the | ||||||
| 16 | excess amounts from the Equity Fund to the General Revenue | ||||||
| 17 | Fund. | ||||||
| 18 | The State Treasurer shall order payment of refunds | ||||||
| 19 | resulting from orders entered on timely applications as | ||||||
| 20 | provided in this Section from the Equity Fund only to the | ||||||
| 21 | extent that amounts have been deposited and retained in the | ||||||
| 22 | Fund. | ||||||
| 23 | This Section shall constitute an irrevocable and | ||||||
| 24 | continuing appropriation from Illinois tax lien purchasers for | ||||||
| 25 | the purpose of paying equity surplus payments to the divested | ||||||
| 26 | property upon the order of the State Treasurer in accordance | ||||||
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| 1 | with the provisions of this Section and for the purpose of | ||||||
| 2 | paying equity surplus to the divested property owner as | ||||||
| 3 | required by the constitution and law. | ||||||
| 4 | (b) In counties of less than 3,000,000 inhabitants, each | ||||||
| 5 | person purchasing any property at a sale under this Code shall | ||||||
| 6 | pay to the county collector, prior to the issuance of any | ||||||
| 7 | certificate of purchase, a nonrefundable Equity Fund fee of | ||||||
| 8 | $150 for each item purchased under Section 21-240. A like | ||||||
| 9 | nonrefundable sum shall be paid for each year that all or a | ||||||
| 10 | portion of subsequent taxes are paid by the tax purchaser and | ||||||
| 11 | posted to the tax judgment, sale, redemption, and forfeiture | ||||||
| 12 | record where the underlying certificate of purchase is | ||||||
| 13 | recorded. The $150 fee per certificate shall be paid by all | ||||||
| 14 | certificate holders, including all trustees and governmental | ||||||
| 15 | agencies holding certificates under Section 21-90. | ||||||
| 16 | (c) In counties of 3,000,000 or more inhabitants, each | ||||||
| 17 | person purchasing property at a sale under this Code shall pay | ||||||
| 18 | to the county collector a nonrefundable Equity Fund fee of | ||||||
| 19 | $250 prior to the issuance of any certificate of purchase and | ||||||
| 20 | for each item purchased under Section 21-240. In these | ||||||
| 21 | counties, the certificate holder shall also pay to the county | ||||||
| 22 | collector a nonrefundable fee of $200 for each year that all or | ||||||
| 23 | a portion of subsequent taxes are paid by the tax purchaser and | ||||||
| 24 | posted to the tax judgment, sale, redemption, and forfeiture | ||||||
| 25 | record. The $250 fee per certificate shall be paid by all | ||||||
| 26 | certificate holders, including all trustees and governmental | ||||||
| |||||||
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| 1 | agencies holding certificates under Section 21-90. | ||||||
| 2 | (d) The Equity Fund fees collected under subsections (b) | ||||||
| 3 | and (c) shall be collected, disbursed, and accounted for as | ||||||
| 4 | set forth in subsection (a).
| ||||||
| 5 | (35 ILCS 200/22-101 new) | ||||||
| 6 | Sec. 22-101. Application for Equity Fund Payment. | ||||||
| 7 | (a) No payment shall be made from the Equity Fund, except | ||||||
| 8 | upon a judgment on the application to the Equity Fund. | ||||||
| 9 | Applications for Equity Fund payments shall be made to the | ||||||
| 10 | county treasurer of the county in which the property is | ||||||
| 11 | situated in the following form, completely filled in and | ||||||
| 12 | submitted to the applicable county treasurer on or before one | ||||||
| 13 | year after the tax deed is recorded, along with a | ||||||
| 14 | nonrefundable application fee as designated by the applicable | ||||||
| 15 | county treasurer: | ||||||
| 16 | APPLICATION FOR EQUITY FUND PAYMENT | ||||||
| 17 | Name..................................................... | ||||||
| 18 | Address.................................................. | ||||||
| 19 | City State Zip........................................... | ||||||
| 20 | Telephone No............................................. | ||||||
| 21 | Email Address............................................ | ||||||
| 22 | Date of Application...................................... | ||||||
| 23 | I, ....... , owned or possessed ownership interest in the | ||||||
| 24 | property commonly known as........., identified by | ||||||
| 25 | parcel/property index number ......... until a tax deed was | ||||||
| |||||||
| |||||||
| 1 | recorded on ......... in ........ County, Illinois. A copy of | ||||||
| 2 | the ownership deed and tax deed are attached to this | ||||||
| 3 | application. | ||||||
| 4 | ....... (initial here) I agree to the County Assessor's | ||||||
| 5 | determination of the estimated fair market value for the year | ||||||
| 6 | in which the tax deed was recorded. | ||||||
| 7 | ....... (initial here) I do not agree to the County | ||||||
| 8 | Assessor's determination of the estimated fair market value | ||||||
| 9 | for the year in which the tax deed was recorded and have | ||||||
| 10 | provided a certified appraisal from an Illinois licensed | ||||||
| 11 | appraiser stating the fair market value of the property lost | ||||||
| 12 | to tax deed is $.... as of the date the tax deed was recorded. | ||||||
| 13 | Under penalties as provided by law pursuant to Section 1-109 | ||||||
| 14 | of the Code of Civil Procedure, the undersigned certifies that | ||||||
| 15 | the statements in this instrument are true and correct. | ||||||
| 16 | (b) Upon receipt of the application, the county collector, | ||||||
| 17 | through the State's Attorney's office, shall review the | ||||||
| 18 | application and request any additional necessary documents. If | ||||||
| 19 | the application is approved, the county collector shall file a | ||||||
| 20 | Petition for Equity Surplus in the court entering the order | ||||||
| 21 | directing the issuance of tax deed. The court shall order the | ||||||
| 22 | payment and determine the amount and enter an order directing | ||||||
| 23 | the State Treasurer to pay the amount determined to the Equity | ||||||
| 24 | Fund applicant from the Equity Fund. | ||||||
| 25 | (c) The county may pass an ordinance to charge an | ||||||
| 26 | application fee of up to $500 per application for payment from | ||||||
| |||||||
| |||||||
| 1 | the Equity Fund. | ||||||
| 2 | (d) The amount of the equity surplus shall be the fair | ||||||
| 3 | market value of the property at the time the tax deed is | ||||||
| 4 | issued, less: | ||||||
| 5 | (1) the lien for taxes, including all statutory fees | ||||||
| 6 | and costs posted to the tax sale paid by the grantee; and | ||||||
| 7 | (2) any taxes paid by the tax purchaser after the last | ||||||
| 8 | day of the redemption period but before the entry of the | ||||||
| 9 | order directing the county clerk to issue a tax deed. | ||||||
| 10 | (e) If any owner or applicant with a valid ownership | ||||||
| 11 | interest in the property lost to tax deed files a petition to | ||||||
| 12 | vacate the tax deed pursuant to Section 2-1203 or 2-1401 of the | ||||||
| 13 | Code of Civil Procedure or Section 22-85, then the one-year | ||||||
| 14 | period set forth in subsection (a) for the filing of an | ||||||
| 15 | application for payment from the Equity Fund shall be tolled | ||||||
| 16 | from the date the petition to vacate the tax deed is filed | ||||||
| 17 | through the date the circuit court issues a final judgment on | ||||||
| 18 | the petition to vacate the tax deed. | ||||||
| 19 | (f) It is the intent of the General Assembly to encourage | ||||||
| 20 | settlement and prompt administrative handling of property | ||||||
| 21 | owners' equity surplus entitlement applications and to reduce | ||||||
| 22 | expenses and costs incurred by claimants seeking just | ||||||
| 23 | compensation under this Section. To that end, no attorney's | ||||||
| 24 | fees shall be charged based on the amount of just compensation | ||||||
| 25 | granted to the claimant under this Section. Attorney's fees | ||||||
| 26 | shall not exceed $200 in connection with the preparation, | ||||||
| |||||||
| |||||||
| 1 | filing, or advancement of any an undisputed application for | ||||||
| 2 | payment from the Equity Fund. In the case of a disputed | ||||||
| 3 | application for payment from the Equity Fund, attorney's fees | ||||||
| 4 | shall be approved by the court granting the application upon | ||||||
| 5 | proof of reasonable hourly attorney's fees charged for | ||||||
| 6 | resolving the dispute.". | ||||||
