Bill Text: IL HB5747 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, for the purposes of the single bidder rule, certain entities that share information, office space, or bidding strategy related to any parcel offered at a tax sale with any other registered individual are considered a related bidding entity. Provides that a registered participant that incurs damages as as a result of a violation of the single bidder rule may bring suit in the circuit court and may recover treble damages and reasonable attorney's fees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-11-16 - Referred to Rules Committee [HB5747 Detail]

Download: Illinois-2021-HB5747-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5747 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED:
35 ILCS 200/21-205
Amends the Property Tax Code. Provides that, for the purposes of the single bidder rule, certain entities that share information, office space, or bidding strategy related to any parcel offered at a tax sale with any other registered individual are considered a related bidding entity. Provides that a registered participant that incurs damages as as a result of a violation of the single bidder rule may bring suit in the circuit court and may recover treble damages and reasonable attorney's fees.
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A BILL FOR
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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 21-205 as follows:
(35 ILCS 200/21-205)
Sec. 21-205. Tax sale procedures.
(a) The collector, in person or by deputy, shall attend,
on the day and in the place specified in the notice for the
sale of property for taxes, and shall, between 9:00 a.m. and
4:00 p.m., or later at the collector's discretion, proceed to
offer for sale, separately and in consecutive order, all
property in the list on which the taxes, special assessments,
interest or costs have not been paid. However, in any county
with 3,000,000 or more inhabitants, the offer for sale shall
be made between 8:00 a.m. and 8:00 p.m. The collector's office
shall be kept open during all hours in which the sale is in
progress. The sale shall be continued from day to day, until
all property in the delinquent list has been offered for sale.
However, any city, village or incorporated town interested in
the collection of any tax or special assessment, may, in
default of bidders, withdraw from collection the special
assessment levied against any property by the corporate

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authorities of the city, village or incorporated town. In case
of a withdrawal, there shall be no sale of that property on
account of the delinquent special assessment thereon.
(b) Until January 1, 2013, in every sale of property
pursuant to the provisions of this Code, the collector may
employ any automated means that the collector deems
appropriate. Beginning on January 1, 2013, either (i) the
collector shall employ an automated bidding system that is
programmed to accept the lowest redemption price bid by an
eligible tax purchaser, subject to the penalty percentage
limitation set forth in Section 21-215, or (ii) all tax sales
shall be digitally recorded with video and audio. All bidders
are required to personally attend the sale and, if automated
means are used, all hardware and software used with respect to
those automated means must be certified by the Department and
re-certified by the Department every 5 years. If the tax sales
are digitally recorded and no automated bidding system is
used, then the recordings shall be maintained by the collector
for a period of at least 3 years from the date of the tax sale.
The changes made by this amendatory Act of the 94th General
Assembly are declarative of existing law.
(b-5) For any annual tax sale conducted on or after the
effective date of this amendatory Act of the 102nd General
Assembly, each county collector in a county with 275,000 or
more inhabitants shall adopt a single bidder rule sufficient
to prohibit a tax purchaser from registering more than one

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related bidding entity at the tax sale. The corporate
authorities in any county with less than 275,000 inhabitants
may, by ordinance, allow the county collector of that county
to adopt such a single bidder rule. In any county that has
adopted a single bidder rule under this subsection (b-5), the
county treasurer shall include a representation and warranty
form in each registration package attesting to compliance with
the single bidder rule, except that the county may, by
ordinance, opt out of this representation and warranty form
requirement. A single bidder rule under this subsection may be
in the following form:
(1) A registered tax buying entity (principal) may
only have one registered buyer at the tax sale and may not
have a related bidding entity directly or indirectly
register as a buyer or participate in the tax sale. A
registered tax buying entity may not engage in any
multiple bidding strategy for the purpose of having more
than one related bidding entity submit bids at the tax
sale.
(2) A related bidding entity is defined as any
individual, corporation, partnership, joint venture,
limited liability company, business organization, or other
entity that has a shareholder, partner, principal,
officer, general partner, or other person or entity having
(i) an ownership interest in a bidding entity in common
with any other registered participant in the tax sale or

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(ii) a common guarantor in connection with a source of
financing with any other registered participant in the tax
sale. An individual, assumed name or "doing business as"
entity, corporation, partnership, joint venture, limited
liability company, business organization, or other entity
that shares information, office space, or bidding strategy
related to any parcel offered at the tax sale with any
other registered individual, assumed name or "doing
business as" entity, corporation, partnership, joint
venture, limited liability company, business organization,
or other entity that is a registered participant is also
considered a related bidding entity. The determination of
whether registered entities are related so as to prohibit
those entities from submitting duplicate bids in violation
of the single bidder rule is at the sole and exclusive
discretion of the county treasurer or his or her
designated representatives.
If a registered participant at a tax sale incurs damages
on or after the effective date of this amendatory Act of the
102nd General Assembly as a result of a violation of the single
bidder rule under this Section, then that registered
participant may bring suit, in the circuit court of the county
where the tax sale occurred, against the registered
participant or participants who are alleged to have violated
the single bidder rule. Upon a finding by the court that a
violation of the single bidder rule occurred, the person

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bringing suit shall recover treble damages and reasonable
attorney's fees. An action for a violation of the single
bidder rule must be filed within 2 years after the date of
discovery of the violation that gave rise to the claim.
(c) County collectors may, when applicable, eject tax
bidders who disrupt the tax sale or use illegal bid practices.
(Source: P.A. 102-519, eff. 8-20-21.)