Bill Text: IL SB0586 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Property Tax Code. In provisions concerning sales in error, provides that, in cases where improvements upon the property sold have been substantially destroyed or rendered uninhabitable or otherwise unfit for occupancy, the court may order assignment of the certificate of purchase to the county collector or the delinquent county tax agent instead of declaring a sale in error upon request of the county collector. Provides that, if the certificate of purchase is assigned to the county delinquent tax agent because the improvements have been substantially destroyed or rendered uninhabitable or otherwise unfit for occupancy, then the county delinquent tax agent shall extend the redemption period by 24 months. Requires the court to notify the county collector when it declares a sale in error under certain conditions.

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Engrossed) 2017-05-26 - Final Action Deadline Extended-9(b) May 31, 2017 [SB0586 Detail]

Download: Illinois-2017-SB0586-Engrossed.html



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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5Sections 21-310, 21-315, and 21-385 as follows:
6 (35 ILCS 200/21-310)
7 Sec. 21-310. Sales in error.
8 (a) When, upon application of the county collector, the
9owner of the certificate of purchase, or a municipality which
10owns or has owned the property ordered sold, it appears to the
11satisfaction of the court which ordered the property sold that
12any of the following subsections are applicable, the court
13shall declare the sale to be a sale in error:
14 (1) the property was not subject to taxation, or all or
15 any part of the lien of taxes sold has become null and void
16 pursuant to Section 21-95 or unenforceable pursuant to
17 subsection (c) of Section 18-250 or subsection (b) of
18 Section 22-40,
19 (2) the taxes or special assessments had been paid
20 prior to the sale of the property,
21 (3) there is a double assessment,
22 (4) the description is void for uncertainty,
23 (5) the assessor, chief county assessment officer,

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1 board of review, board of appeals, or other county official
2 has made an error (other than an error of judgment as to
3 the value of any property),
4 (5.5) the owner of the homestead property had tendered
5 timely and full payment to the county collector that the
6 owner reasonably believed was due and owing on the
7 homestead property, and the county collector did not apply
8 the payment to the homestead property; provided that this
9 provision applies only to homeowners, not their agents or
10 third-party payors,
11 (6) prior to the tax sale a voluntary or involuntary
12 petition has been filed by or against the legal or
13 beneficial owner of the property requesting relief under
14 the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
15 (7) the property is owned by the United States, the
16 State of Illinois, a municipality, or a taxing district, or
17 (8) the owner of the property is a reservist or
18 guardsperson who is granted an extension of his or her due
19 date under Sections 21-15, 21-20, and 21-25 of this Act.
20 (b) When, upon application of the owner of the certificate
21of purchase only, it appears to the satisfaction of the court
22which ordered the property sold that any of the following
23subsections are applicable, the court shall declare the sale to
24be a sale in error:
25 (1) A voluntary or involuntary petition under the
26 provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been

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1 filed subsequent to the tax sale and prior to the issuance
2 of the tax deed.
3 (2) The improvements upon the property sold have been
4 substantially destroyed or rendered uninhabitable or
5 otherwise unfit for occupancy subsequent to the tax sale
6 and prior to the issuance of the tax deed; however, if the
7 court declares a sale in error under this paragraph (2),
8 the court may order assignment of the certificate of
9 purchase to the county collector or the delinquent county
10 tax agent, if requested by the county collector.
11 (3) There is an interest held by the United States in
12 the property sold which could not be extinguished by the
13 tax deed.
14 (4) The real property contains a hazardous substance,
15 hazardous waste, or underground storage tank that would
16 require cleanup or other removal under any federal, State,
17 or local law, ordinance, or regulation, only if the tax
18 purchaser purchased the property without actual knowledge
19 of the hazardous substance, hazardous waste, or
20 underground storage tank. This paragraph (4) applies only
21 if the owner of the certificate of purchase has made
22 application for a sale in error at any time before the
23 issuance of a tax deed.
24 Whenever a court declares a sale in error under this
25subsection (b), the court shall promptly notify the county
26collector in writing.

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1 (c) When the county collector discovers, prior to the
2expiration of the period of redemption, that a tax sale should
3not have occurred for one or more of the reasons set forth in
4subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
5the county collector shall notify the last known owner of the
6certificate of purchase by certified and regular mail, or other
7means reasonably calculated to provide actual notice, that the
8county collector intends to declare an administrative sale in
9error and of the reasons therefor, including documentation
10sufficient to establish the reason why the sale should not have
11occurred. The owner of the certificate of purchase may object
12in writing within 28 days after the date of the mailing by the
13county collector. If an objection is filed, the county
14collector shall not administratively declare a sale in error,
15but may apply to the circuit court for a sale in error as
16provided in subsection (a) of this Section. Thirty days
17following the receipt of notice by the last known owner of the
18certificate of purchase, or within a reasonable time
19thereafter, the county collector shall make a written
20declaration, based upon clear and convincing evidence, that the
21taxes were sold in error and shall deliver a copy thereof to
22the county clerk within 30 days after the date the declaration
23is made for entry in the tax judgment, sale, redemption, and
24forfeiture record pursuant to subsection (d) of this Section.
25The county collector shall promptly notify the last known owner
26of the certificate of purchase of the declaration by regular

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1mail and shall promptly pay the amount of the tax sale,
2together with interest and costs as provided in Section 21-315,
3upon surrender of the original certificate of purchase.
4 (d) If a sale is declared to be a sale in error, the county
5clerk shall make entry in the tax judgment, sale, redemption
6and forfeiture record, that the property was erroneously sold,
7and the county collector shall, on demand of the owner of the
8certificate of purchase, refund the amount paid, pay any
9interest and costs as may be ordered under Sections 21-315
10through 21-335, and cancel the certificate so far as it relates
11to the property. The county collector shall deduct from the
12accounts of the appropriate taxing bodies their pro rata
13amounts paid. Alternatively, for sales in error declared under
14subsection (b)(2), the county collector may request the circuit
15court to direct the county clerk to assign the tax certificate
16to the county collector or the county delinquent tax agent
17without charging a fee for the assignment. The owner of the
18certificate of purchase shall receive all statutory refunds and
19payments. The county collector shall deduct costs and payments
20in the same manner as if a sale in error had occurred. The
21county delinquent tax agent shall extend the redemption period
22by 24 months in order to proceed with filing a petition for tax
23deed.
24(Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06;
2595-331, eff. 8-21-07.)

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1 (35 ILCS 200/21-315)
2 Sec. 21-315. Refund of costs; interest on refund.
3 (a) If a sale in error under Section 21-310, 22-35, or
422-50 is declared, the amount refunded shall also include all
5costs paid by the owner of the certificate of purchase or his
6or her assignor which were posted to the tax judgment, sale,
7redemption and forfeiture record.
8 (b) In those cases which arise solely under grounds set
9forth in Section 21-310, the amount refunded shall also include
10interest on the refund of the amount paid for the certificate
11of purchase, except as otherwise provided in this Section.
12Interest shall be awarded and paid to the tax purchaser at the
13rate of 1% per month from the date of sale to the date of
14payment, or in an amount equivalent to the penalty interest
15which would be recovered on a redemption at the time of payment
16pursuant to the order for sale in error, whichever is less.
17Interest shall not be paid when the sale in error is made
18pursuant to paragraph (2) or (4) of subsection (b) of Section
1921-310, Section 22-35, Section 22-50, any ground not enumerated
20in Section 21-310, or in any other case where the court
21determines that the tax purchaser had actual knowledge prior to
22the sale of the grounds on which the sale is declared to be
23erroneous.
24 (c) When the county collector files a petition for sale in
25error under Section 21-310 and mails a notice thereof by
26certified or registered mail to the last known owner of the

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1certificate of purchase, any interest otherwise payable under
2this Section shall cease to accrue as of the date the petition
3is filed, unless the tax purchaser agrees to an order for sale
4in error upon the presentation of the petition to the court.
5Notices under this subsection may be mailed to the last known
6owner of the certificate of purchase. When the owner of the
7certificate of purchase contests the collector's petition
8solely to determine whether the grounds for sale in error are
9such as to support a claim for interest, the court may direct
10that the principal amount of the refund be paid to the owner of
11the certificate of purchase forthwith. If the court thereafter
12determines that a claim for interest lies under this Section,
13it shall award such interest from the date of sale to the date
14the principal amount was paid. If the owner of the certificate
15of purchase files an objection to the county collector's
16intention to declare an administrative sale in error, as
17provided under subsection (c) of Section 21-310, and,
18thereafter, the county collector elects to apply to the circuit
19court for a sale in error under subsection (a) of Section
2021-310, then, if the circuit court grants the county
21collector's application for a sale in error, the court may not
22award interest to the owner of the certificate of purchase for
23the period after the mailing date of the county collector's
24notice of intention to declare an administrative sale in error.
25 (d) When a petition for a sale in error is filed under
26subsection (b) of Section 21-310, the petition shall be filed

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1under the order in which the court previously ordered the taxes
2sold. The certificate holder shall not be required to pay a
3filing fee under this Section.
4(Source: P.A. 94-662, eff. 1-1-06.)
5 (35 ILCS 200/21-385)
6 Sec. 21-385. Extension of period of redemption. The
7purchaser or his or her assignee of property sold for
8nonpayment of general taxes or special assessments may extend
9the period of redemption at any time before the expiration of
10the original period of redemption, or thereafter prior to the
11expiration of any extended period of redemption, for a period
12which will expire not later than 3 years from the date of sale,
13by filing with the county clerk of the county in which the
14property is located a written notice to that effect describing
15the property, stating the date of the sale and specifying the
16extended period of redemption. If prior to the expiration of
17the period of redemption or extended period of redemption a
18petition for tax deed has been filed under Section 22-30, upon
19application of the petitioner, the court shall allow the
20purchaser or his or her assignee to extend the period of
21redemption after expiration of the original period or any
22extended period of redemption, provided that any extension
23allowed will expire not later than 3 years from the date of
24sale, unless the certificate has been assigned to the county
25collector or the county delinquent tax agent by the court which

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1ordered the property sold, in which case the period of
2redemption shall be extended for 24 months. If the period of
3redemption is extended, the purchaser or his or her assignee
4must give the notices provided for in Section 22-10 at the
5specified times prior to the expiration of the extended period
6of redemption by causing a sheriff (or if he or she is
7disqualified, a coroner) of the county in which the property,
8or any part thereof, is located to serve the notices as
9provided in Sections 22-15 and 22-20. The notices may also be
10served as provided in Sections 22-15 and 22-20 by a special
11process server appointed by the court under Section 22-15.
12(Source: P.A. 91-209, eff. 1-1-00; 91-554, eff. 8-14-99.)
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