Bill Text: IL HB5046 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that the $80 fee paid by tax purchasers is non-refundable. Reinstates provisions imposing a 5% fee on taxes, interest, and penalties due at purchase.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2020-09-02 - Added Co-Sponsor Rep. Debbie Meyers-Martin [HB5046 Detail]

Download: Illinois-2019-HB5046-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5046 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
35 ILCS 200/21-295
35 ILCS 200/21-310
35 ILCS 200/21-355
Amends the Property Tax Code. Provides that the $80 fee paid by tax purchasers is non-refundable. Reinstates provisions imposing a 5% fee on taxes, interest, and penalties due at purchase.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB5046 LRB101 17356 HLH 66761 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
Sections 21-295, 21-310, 21-355 as follows:
(35 ILCS 200/21-295)
Sec. 21-295. Creation of indemnity fund.
(a) In counties of less than 3,000,000 inhabitants, each
person purchasing any property at a sale under this Code shall
pay to the County Collector, prior to the issuance of any
certificate of purchase, an indemnity fee set by the county
collector of not more than $20 for each item purchased. A like
sum shall be paid for each year that all or a portion of
subsequent taxes are paid by the tax purchaser and posted to
the tax judgment, sale, redemption and forfeiture record where
the underlying certificate of purchase is recorded.
(a-5) In counties of 3,000,000 or more inhabitants, each
person purchasing property at a sale under this Code shall pay
to the County Collector a non-refundable fee of $80 for each
item purchased plus an additional sum equal to 5% of taxes,
interest, and penalties paid by the purchaser, including the
taxes, interest, and penalties paid under Section 21-240. In
these counties, the certificate holder shall also pay to the

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County Collector a fee of $80 for each year that all or a
portion of subsequent taxes are paid by the tax purchaser and
posted to the tax judgment, sale, redemption, and forfeiture
record, plus an additional sum equal to 5% of all subsequent
taxes, interest, and penalties. The additional 5% fees are not
required after December 31, 2006. The changes to this
subsection made by this amendatory Act of the 91st General
Assembly are not a new enactment, but declaratory of existing
law.
(b) The amount paid prior to issuance of the certificate of
purchase pursuant to subsection (a) or (a-5) shall be included
in the purchase price of the property in the certificate of
purchase and all amounts paid under this Section shall be
included in the amount required to redeem under Section 21-355,
except for the non-refundable $80 fee for each item purchased
at the tax sale as provided in this Section. Except as
otherwise provided in subsection (b) of Section 21-300, all
money received under subsection (a) or (a-5) shall be paid by
the Collector to the County Treasurer of the County in which
the land is situated, for the purpose of an indemnity fund. The
County Treasurer, as trustee of that fund, shall invest all of
that fund, principal and income, in his or her hands from time
to time, if not immediately required for payments of
indemnities under subsection (a) of Section 21-305, in
investments permitted by the Illinois State Board of Investment
under Article 22A of the Illinois Pension Code. The county

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collector shall report annually to the county clerk on the
condition and income of the fund. The indemnity fund shall be
held to satisfy judgments obtained against the County
Treasurer, as trustee of the fund. No payment shall be made
from the fund, except upon a judgment of the court which
ordered the issuance of a tax deed.
(Source: P.A. 100-1070, eff. 1-1-19.)
(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,

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board of review, board of appeals, or other county official
has made an error (other than an error of judgment as to
the value of any property),
(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,
(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.
(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

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filed subsequent to the tax sale and prior to the issuance
of the tax deed.
(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
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

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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
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

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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
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,

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and the county collector shall, on demand of the owner of the
certificate of purchase, refund the amount paid, except for the
non-refundable $80 fee paid, pursuant to Section 21-295, for
each item purchased at the tax sale, 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.
(Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20.)
(35 ILCS 200/21-355)
Sec. 21-355. Amount of redemption. Any person desiring to
redeem shall deposit an amount specified in this Section with
the county clerk of the county in which the property is
situated, in legal money of the United States, or by cashier's
check, certified check, post office money order or money order
issued by a financial institution insured by an agency or
instrumentality of the United States, payable to the county

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clerk of the proper county. The deposit shall be deemed timely
only if actually received in person at the county clerk's
office prior to the close of business as defined in Section
3-2007 of the Counties Code on or before the expiration of the
period of redemption or by United States mail with a post
office cancellation mark dated not less than one day prior to
the expiration of the period of redemption. The deposit shall
be in an amount equal to the total of the following:
(a) the certificate amount, which shall include all tax
principal, special assessments, interest and penalties
paid by the tax purchaser together with costs and fees of
sale and fees paid under Sections 21-295 and 21-315 through
21-335, except for the non-refundable $80 fee paid,
pursuant to Section 21-295, for each item purchased at the
tax sale;
(b) the accrued penalty, computed through the date of
redemption as a percentage of the certificate amount, as
follows:
(1) if the redemption occurs on or before the
expiration of 6 months from the date of sale, the
certificate amount times the penalty bid at sale;
(2) if the redemption occurs after 6 months from
the date of sale, and on or before the expiration of 12
months from the date of sale, the certificate amount
times 2 times the penalty bid at sale;
(3) if the redemption occurs after 12 months from

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the date of sale and on or before the expiration of 18
months from the date of sale, the certificate amount
times 3 times the penalty bid at sale;
(4) if the redemption occurs after 18 months from
the date of sale and on or before the expiration of 24
months from the date of sale, the certificate amount
times 4 times the penalty bid at sale;
(5) if the redemption occurs after 24 months from
the date of sale and on or before the expiration of 30
months from the date of sale, the certificate amount
times 5 times the penalty bid at sale;
(6) if the redemption occurs after 30 months from
the date of sale and on or before the expiration of 36
months from the date of sale, the certificate amount
times 6 times the penalty bid at sale.
In the event that the property to be redeemed has
been purchased under Section 21-405, the penalty bid
shall be 12% per penalty period as set forth in
subparagraphs (1) through (6) of this subsection (b).
The changes to this subdivision (b)(6) made by this
amendatory Act of the 91st General Assembly are not a
new enactment, but declaratory of existing law.
(c) The total of all taxes, special assessments,
accrued interest on those taxes and special assessments and
costs charged in connection with the payment of those taxes
or special assessments, except for the non-refundable $80

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fee paid, pursuant to Section 21-295, for each item
purchased at the tax sale, which have been paid by the tax
certificate holder on or after the date those taxes or
special assessments became delinquent together with 12%
penalty on each amount so paid for each year or portion
thereof intervening between the date of that payment and
the date of redemption. In counties with less than
3,000,000 inhabitants, however, a tax certificate holder
may not pay all or part of an installment of a subsequent
tax or special assessment for any year, nor shall any
tender of such a payment be accepted, until after the
second or final installment of the subsequent tax or
special assessment has become delinquent or until after the
holder of the certificate of purchase has filed a petition
for a tax deed under Section 22.30. The person redeeming
shall also pay the amount of interest charged on the
subsequent tax or special assessment and paid as a penalty
by the tax certificate holder. This amendatory Act of 1995
applies to tax years beginning with the 1995 taxes, payable
in 1996, and thereafter.
(d) Any amount paid to redeem a forfeiture occurring
subsequent to the tax sale together with 12% penalty
thereon for each year or portion thereof intervening
between the date of the forfeiture redemption and the date
of redemption from the sale.
(e) Any amount paid by the certificate holder for

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redemption of a subsequently occurring tax sale.
(f) All fees paid to the county clerk under Section
22-5.
(g) All fees paid to the registrar of titles incident
to registering the tax certificate in compliance with the
Registered Titles (Torrens) Act.
(h) All fees paid to the circuit clerk and the sheriff,
a licensed or registered private detective, or the coroner
in connection with the filing of the petition for tax deed
and service of notices under Sections 22-15 through 22-30
and 22-40 in addition to (1) a fee of $35 if a petition for
tax deed has been filed, which fee shall be posted to the
tax judgement, sale, redemption, and forfeiture record, to
be paid to the purchaser or his or her assignee; (2) a fee
of $4 if a notice under Section 22-5 has been filed, which
fee shall be posted to the tax judgment, sale, redemption,
and forfeiture record, to be paid to the purchaser or his
or her assignee; (3) all costs paid to record a lis pendens
notice in connection with filing a petition under this
Code; and (4) if a petition for tax deed has been filed,
all fees up to $150 per redemption paid to a registered or
licensed title insurance company or title insurance agent
for a title search to identify all owners, parties
interested, and occupants of the property, to be paid to
the purchaser or his or her assignee. The fees in (1) and
(2) of this paragraph (h) shall be exempt from the posting

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requirements of Section 21-360. The costs incurred in
causing notices to be served by a licensed or registered
private detective under Section 22-15, may not exceed the
amount that the sheriff would be authorized by law to
charge if those notices had been served by the sheriff.
(i) All fees paid for publication of notice of the tax
sale in accordance with Section 22-20.
(j) All sums paid to any county, city, village or
incorporated town for reimbursement under Section 22-35.
(k) All costs and expenses of receivership under
Section 21-410, to the extent that these costs and expenses
exceed any income from the property in question, if the
costs and expenditures have been approved by the court
appointing the receiver and a certified copy of the order
or approval is filed and posted by the certificate holder
with the county clerk. Only actual costs expended may be
posted on the tax judgment, sale, redemption and forfeiture
record.
(Source: P.A. 98-1162, eff. 6-1-15.)