Bill Text: IL HB4550 | 2019-2020 | 101st General Assembly | Introduced

---

Bill Title: Amends the Property Tax Code. In provisions requiring the court to declare a sale in error in the case of an error by the assessor, chief county assessment officer, board of review, board of appeals, or other county official, provides that the error must be material to the tax sale at issue and may not include an error in the description of the physical characteristics or location of any property displayed on the website of any county assessing official. Provides that, if the legal or beneficial owner of the property requests bankruptcy relief, a sale in error shall be granted only if the property is subject to an automatic stay pursuant to the bankruptcy petition, and the petition is active as of the date on which the petition for sale in error is filed. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB4550 Detail]

Download: Illinois-2019-HB4550-Introduced.html

---

101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4550 Introduced , by Rep. Lamont J. Robinson, Jr. SYNOPSIS AS INTRODUCED:
35 ILCS 200/21-310
Amends the Property Tax Code. In provisions requiring the court to declare a sale in error in the case of an error by the assessor, chief county assessment officer, board of review, board of appeals, or other county official, provides that the error must be material to the tax sale at issue and may not include an error in the description of the physical characteristics or location of any property displayed on the website of any county assessing official. Provides that, if the legal or beneficial owner of the property requests bankruptcy relief, a sale in error shall be granted only if the property is subject to an automatic stay pursuant to the bankruptcy petition, and the petition is active as of the date on which the petition for sale in error is filed. Effective immediately.
LRB101 16257 HLH 65630 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB4550 LRB101 16257 HLH 65630 b
AN ACT concerning revenue.
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 21-310 as follows:
(35 ILCS 200/21-310)
Sec. 21-310. Sales in error.
(a) When, upon application of the county collector, the
owner of the certificate of purchase, or a municipality which
owns or has owned the property ordered sold, it appears to the
satisfaction of the court which ordered the property sold that
any of the following subsections are applicable, the court
shall declare the sale to be a sale in error:
(1) the property was not subject to taxation, or all or
any part of the lien of taxes sold has become null and void
pursuant to Section 21-95 or unenforceable pursuant to
subsection (c) of Section 18-250 or subsection (b) of
Section 22-40,
(2) the taxes or special assessments had been paid
prior to the sale of the property,
(3) there is a double assessment,
(4) the description is void for uncertainty,
(5) the assessor, chief county assessment officer,

HB4550 - 2 - LRB101 16257 HLH 65630 b
board of review, board of appeals, or other county official
has made an error material to the tax sale at issue (other
than an error of judgment as to the value of any property
or an error in the description of the physical
characteristics or location of any property displayed on
the website of any county assessing official),
(5.5) the owner of the homestead property had tendered
timely and full payment to the county collector that the
owner reasonably believed was due and owing on the
homestead property, and the county collector did not apply
the payment to the homestead property; provided that this
provision applies only to homeowners, not their agents or
third-party payors,
(6) prior to the tax sale a voluntary or involuntary
petition has been filed by or against the legal or
beneficial owner of the property requesting relief under
the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13, the
property is subject to an automatic stay pursuant to that
petition, and that petition is active on the date of the
application for judgment and order of sale or the date of
the tax sale,
(7) the property is owned by the United States, the
State of Illinois, a municipality, or a taxing district, or
(8) the owner of the property is a reservist or
guardsperson who is granted an extension of his or her due
date under Sections 21-15, 21-20, and 21-25 of this Act.

HB4550 - 3 - LRB101 16257 HLH 65630 b
(b) When, upon application of the owner of the certificate
of purchase only, it appears to the satisfaction of the court
which ordered the property sold that any of the following
subsections are applicable, the court shall declare the sale to
be a sale in error:
(1) A voluntary or involuntary petition under the
provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
filed subsequent to the tax sale and prior to the issuance
of the tax deed, the property is subject to an automatic
stay pursuant to that petition, and that petition is active
as of the date on which the petition for sale in error is
filed.
(2) The improvements upon the property sold have been
substantially destroyed or rendered uninhabitable or
otherwise unfit for occupancy subsequent to the tax sale
and prior to the issuance of the tax deed; however, if the
court declares a sale in error under this paragraph (2),
the court may order the holder of the certificate of
purchase to assign the certificate to the county collector
if requested by the county collector. The county collector
may, upon request of the county, as trustee, or upon
request of a taxing district having an interest in the
taxes sold, further assign any certificate of purchase
received pursuant to this paragraph (2) to the county
acting as trustee for taxing districts pursuant to Section
21-90 of this Code or to the taxing district having an

HB4550 - 4 - LRB101 16257 HLH 65630 b
interest in the taxes sold.
(3) There is an interest held by the United States in
the property sold which could not be extinguished by the
tax deed.
(4) The real property contains a hazardous substance,
hazardous waste, or underground storage tank that would
require cleanup or other removal under any federal, State,
or local law, ordinance, or regulation, only if the tax
purchaser purchased the property without actual knowledge
of the hazardous substance, hazardous waste, or
underground storage tank. This paragraph (4) applies only
if the owner of the certificate of purchase has made
application for a sale in error at any time before the
issuance of a tax deed. If the court declares a sale in
error under this paragraph (4), the court may order the
holder of the certificate of purchase to assign the
certificate to the county collector if requested by the
county collector. The county collector may, upon request of
the county, as trustee, or upon request of a taxing
district having an interest in the taxes sold, further
assign any certificate of purchase received pursuant to
this paragraph (4) to the county acting as trustee for
taxing districts pursuant to Section 21-90 of this Code or
to the taxing district having an interest in the taxes
sold.
Whenever a court declares a sale in error under this

HB4550 - 5 - LRB101 16257 HLH 65630 b
subsection (b), the court shall promptly notify the county
collector in writing. Every such declaration pursuant to any
provision of this subsection (b) shall be made within the
proceeding in which the tax sale was authorized.
(c) When the county collector discovers, prior to the
expiration of the period of redemption, that a tax sale should
not have occurred for one or more of the reasons set forth in
subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
the county collector shall notify the last known owner of the
certificate of purchase by certified and regular mail, or other
means reasonably calculated to provide actual notice, that the
county collector intends to declare an administrative sale in
error and of the reasons therefor, including documentation
sufficient to establish the reason why the sale should not have
occurred. The owner of the certificate of purchase may object
in writing within 28 days after the date of the mailing by the
county collector. If an objection is filed, the county
collector shall not administratively declare a sale in error,
but may apply to the circuit court for a sale in error as
provided in subsection (a) of this Section. Thirty days
following the receipt of notice by the last known owner of the
certificate of purchase, or within a reasonable time
thereafter, the county collector shall make a written
declaration, based upon clear and convincing evidence, that the
taxes were sold in error and shall deliver a copy thereof to
the county clerk within 30 days after the date the declaration

HB4550 - 6 - LRB101 16257 HLH 65630 b
is made for entry in the tax judgment, sale, redemption, and
forfeiture record pursuant to subsection (d) of this Section.
The county collector shall promptly notify the last known owner
of the certificate of purchase of the declaration by regular
mail and shall promptly pay the amount of the tax sale,
together with interest and costs as provided in Section 21-315,
upon surrender of the original certificate of purchase.
(d) If a sale is declared to be a sale in error, the county
clerk shall make entry in the tax judgment, sale, redemption
and forfeiture record, that the property was erroneously sold,
and the county collector shall, on demand of the owner of the
certificate of purchase, refund the amount paid, pay any
interest and costs as may be ordered under Sections 21-315
through 21-335, and cancel the certificate so far as it relates
to the property. The county collector shall deduct from the
accounts of the appropriate taxing bodies their pro rata
amounts paid. Alternatively, for sales in error declared under
subsection (b)(2) or (b)(4), the county collector may request
the circuit court to direct the county clerk to record any
assignment of the tax certificate to or from the county
collector without charging a fee for the assignment. The owner
of the certificate of purchase shall receive all statutory
refunds and payments. The county collector shall deduct costs
and payments in the same manner as if a sale in error had
occurred.
(e) The changes made to this Section by this amendatory Act

HB4550 - 7 - LRB101 16257 HLH 65630 b
of the 101st General Assembly apply only to tax sales commenced
on or after January 1, 2021.
(Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20.)
Section 99. Effective date. This Act takes effect upon
becoming law.