Bill Text: IL SB0845 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Property Tax Code. Provides that, in Cook County, all applications for judgment and order of sale for taxes and special assessments on delinquent properties shall be made (i) by April 1, 2017 for tax year 2015, and (ii) by March 1 of the second calendar year after the applicable tax year for tax year 2016 and thereafter (currently, by May 1, 2016 for tax year 2014, by March 1, 2017 for tax year 2015, and within 90 days after the second installment due date for tax year 2016 and each tax year thereafter). Makes changes concerning the indemnity fee. Provides that the fee shall be adjusted annually beginning on February 1, 2023. Provides that the court may not declare a sale in error solely based on an error of the assessor, chief county assessment officer, board of review, board of appeals, or other county official if the court finds that the error is immaterial. In provisions that require the court to declare a sale in error in the case of a voluntary or involuntary petition under the provisions of the federal Bankruptcy Code of 1978, provides that the petition must be pending on the date of the application for judgment and order of sale or the date of the tax sale. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2017-04-07 - Rule 2-10 Committee Deadline Established As May 5, 2017 [SB0845 Detail]

Download: Illinois-2017-SB0845-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0845

Introduced 2/7/2017, by Sen. Toi W. Hutchinson

SYNOPSIS AS INTRODUCED:
35 ILCS 200/21-150
35 ILCS 200/21-295
35 ILCS 200/21-305
35 ILCS 200/21-310

Amends the Property Tax Code. Provides that, in Cook County, all applications for judgment and order of sale for taxes and special assessments on delinquent properties shall be made (i) by April 1, 2017 for tax year 2015, and (ii) by March 1 of the second calendar year after the applicable tax year for tax year 2016 and thereafter (currently, by May 1, 2016 for tax year 2014, by March 1, 2017 for tax year 2015, and within 90 days after the second installment due date for tax year 2016 and each tax year thereafter). Makes changes concerning the indemnity fee. Provides that the fee shall be adjusted annually beginning on February 1, 2023. Provides that the court may not declare a sale in error solely based on an error of the assessor, chief county assessment officer, board of review, board of appeals, or other county official if the court finds that the error is immaterial. In provisions that require the court to declare a sale in error in the case of a voluntary or involuntary petition under the provisions of the federal Bankruptcy Code of 1978, provides that the petition must be pending on the date of the application for judgment and order of sale or the date of the tax sale. Effective immediately.
LRB100 08076 HLH 18162 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

SB0845LRB100 08076 HLH 18162 b
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 21-150, 21-295, 21-305, and 21-310 as follows:
6 (35 ILCS 200/21-150)
7 Sec. 21-150. Time of applying for judgment. Except as
8otherwise provided in this Section or by ordinance or
9resolution enacted under subsection (c) of Section 21-40, in
10any county with fewer than 3,000,000 inhabitants, all
11applications for judgment and order of sale for taxes and
12special assessments on delinquent properties shall be made
13within 90 days after the second installment due date. In Cook
14County, all applications for judgment and order of sale for
15taxes and special assessments on delinquent properties shall be
16made (i) by July 1, 2011 for tax year 2009, (ii) by July 1, 2012
17for tax year 2010, (iii) by July 1, 2013 for tax year 2011,
18(iv) by July 1, 2014 for tax year 2012, (v) by July 1, 2015 for
19tax year 2013, (vi) by May 1, 2016 for tax year 2014, (vii) by
20April 1, 2017 for tax year 2015, and (viii) by March 1 of the
21second calendar year after the applicable tax year for tax year
222016 and March 1, 2017 for tax year 2015, and (viii) within 90
23days after the second installment due date for tax year 2016

SB0845- 2 -LRB100 08076 HLH 18162 b
1and each tax year thereafter. In those counties which have
2adopted an ordinance under Section 21-40, the application for
3judgment and order of sale for delinquent taxes shall be made
4in December. In the 10 years next following the completion of a
5general reassessment of property in any county with 3,000,000
6or more inhabitants, made under an order of the Department,
7applications for judgment and order of sale shall be made as
8soon as may be and on the day specified in the advertisement
9required by Section 21-110 and 21-115. If for any cause the
10court is not held on the day specified, the cause shall stand
11continued, and it shall be unnecessary to re-advertise the list
12or notice.
13 Within 30 days after the day specified for the application
14for judgment the court shall hear and determine the matter. If
15judgment is rendered, the sale shall begin on the date within 5
16business days specified in the notice as provided in Section
1721-115. If the collector is prevented from advertising and
18obtaining judgment within the time periods specified by this
19Section, the collector may obtain judgment at any time
20thereafter; but if the failure arises by the county collector's
21not complying with any of the requirements of this Code, he or
22she shall be held on his or her official bond for the full
23amount of all taxes and special assessments charged against him
24or her. Any failure on the part of the county collector shall
25not be allowed as a valid objection to the collection of any
26tax or assessment, or to entry of a judgment against any

SB0845- 3 -LRB100 08076 HLH 18162 b
1delinquent properties included in the application of the county
2collector.
3(Source: P.A. 97-637, eff. 12-16-11; 98-1101, eff. 8-26-14.)
4 (35 ILCS 200/21-295)
5 Sec. 21-295. Creation of indemnity fund.
6 (a) In counties of less than 3,000,000 inhabitants, each
7person purchasing any property at a sale under this Code shall
8pay to the County Collector, prior to the issuance of any
9certificate of purchase, a fee of $20 for each item purchased.
10A like sum shall be paid for each year that all or a portion of
11subsequent taxes are paid by the tax purchaser and posted to
12the tax judgment, sale, redemption and forfeiture record where
13the underlying certificate of purchase is recorded.
14 (a-5) In counties of 3,000,000 or more inhabitants, with
15respect to tax sales commenced on or before February 1, 2023,
16each person purchasing property at a sale under this Code shall
17pay to the County Collector a fee of $80 for each item
18purchased plus an additional sum equal to 5% of taxes,
19interest, and penalties paid by the purchaser, including the
20taxes, interest, and penalties paid under Section 21-240. In
21these counties, with respect to tax sales commenced on or
22before February 1, 2023, the certificate holder shall also pay
23to the County Collector a fee of $80 for each year that all or a
24portion of subsequent taxes are paid by the tax purchaser and
25posted to the tax judgment, sale, redemption, and forfeiture

SB0845- 4 -LRB100 08076 HLH 18162 b
1record, plus an additional sum equal to 5% of all subsequent
2taxes, interest, and penalties. The additional 5% fees are not
3required after December 31, 2006. The changes to this
4subsection made by this amendatory Act of the 91st General
5Assembly are not a new enactment, but declaratory of existing
6law.
7 (a-10) In counties of 3,000,000 or more inhabitants, with
8respect to tax sales commencing on or after February 1, 2018,
9each person purchasing property at a sale under this Code shall
10pay to the County Collector a fee equal to 2.5% of the taxes,
11interest, and costs paid by the purchaser, as adjusted under
12this subsection, including the taxes, interest, and costs paid
13under Section 21-240. This fee shall be in addition to any
14other fee payable by the tax purchaser under this Code. With
15respect to those sales, the certificate holder shall pay to the
16County Collector a fee equal to 2.5% of all subsequent taxes,
17interest, and costs paid by the tax purchaser and posted to the
18tax judgment, sale, redemption, and forfeiture record. The fees
19set forth in this subsection shall be adjusted on July 1, 2023
20and automatically adjusted annually on July 1 of each year
21thereafter to a percentage not greater than 3.5% and not less
22than 0% of taxes, interest, and costs purchased or paid by the
23purchaser. That adjusted fee percentage shall be published on
24the County Collector's website not later than July 1 of each
25year, effective for tax sales commenced on or after February 1
26of the following year. In calendar year 2023 and all subsequent

SB0845- 5 -LRB100 08076 HLH 18162 b
1years, the fee percentage, within the limits provided by this
2subsection, shall be automatically adjusted as follows
3according to data set forth in the County Collector's most
4recent independently audited financial statement: (1) if the
5assets of the Indemnity Fund are less than the judgments
6outstanding against it as of November 30 of the most recently
7completed fiscal year, the fee percentage for the following
8year shall be 3.5%; and (2) if the assets of the Indemnity Fund
9are equal to or greater than the judgments outstanding against
10it as of November 30 of the most recently completed fiscal
11year, the fee percentage for the following year shall be
12adjusted to the fee percentage which, if multiplied by the
13total value of taxes sold in the prior year, yields a sum that
14otherwise would have been sufficient to pay all judgments
15obtained and anticipated against the Indemnity Fund and filed
16with the County Clerk on or before November 30 of that prior
17year, rounded upward to the nearest 0.25%.
18 (b) The amount paid prior to issuance of the certificate of
19purchase pursuant to subsection (a), or (a-5), or (a-10) shall
20be included in the purchase price of the property in the
21certificate of purchase and all amounts paid under this Section
22shall be included in the amount required to redeem under
23Section 21-355. Except as otherwise provided in subsection (b)
24of Section 21-300, all money received under subsection (a), or
25(a-5), or (a-10) shall be paid by the Collector to the County
26Treasurer of the County in which the land is situated, for the

SB0845- 6 -LRB100 08076 HLH 18162 b
1purpose of an indemnity fund. The County Treasurer, as trustee
2of that fund, shall invest all of that fund, principal and
3income, in his or her hands from time to time, if not
4immediately required for payments of indemnities under
5subsection (a) of Section 21-305, in investments permitted by
6the Illinois State Board of Investment under Article 22A of the
7Illinois Pension Code. The county collector shall report
8annually to the county clerk on the condition and income of the
9fund. The indemnity fund shall be held to satisfy judgments
10obtained against the County Treasurer, as trustee of the fund.
11No payment shall be made from the fund, except upon a judgment
12of the court which ordered the issuance of a tax deed.
13 (c) The changes to this Section made by this amendatory Act
14of the 100th General Assembly shall apply only to tax sales
15commenced on or after February 1, 2018.
16(Source: P.A. 94-412, eff. 8-2-05.)
17 (35 ILCS 200/21-305)
18 Sec. 21-305. Payments from Indemnity Fund.
19 (a) Any owner of property sold under any provision of this
20Code who sustains loss or damage by reason of the issuance of a
21tax deed under Section 21-445 or 22-40 and who is barred or is
22in any way precluded from bringing an action for the recovery
23of the property shall have the right to indemnity for the loss
24or damage sustained, limited as follows:
25 (1) An owner who resided on property that contained 4

SB0845- 7 -LRB100 08076 HLH 18162 b
1 or less dwelling units on the last day of the period of
2 redemption and who is equitably entitled to compensation
3 for the loss or damage sustained has the right to
4 indemnity. An equitable indemnity award shall be limited to
5 the fair cash value of the property as of the date the tax
6 deed was issued less any mortgages or liens on the
7 property, and the award will not exceed $99,000. The Court
8 shall liberally construe this equitable entitlement
9 standard to provide compensation wherever, in the
10 discretion of the Court, the equities warrant the action.
11 (1.5) An owner who resided on of a property that
12 contained 4 or less dwelling units who requests an award in
13 excess of $99,000 must prove that the loss of his or her
14 property was not attributable to his or her own fault or
15 negligence before a fair cash value an award in excess of
16 $99,000 will be granted.
17 (2) An owner of property not referenced in paragraph
18 (1) or (1.5) of this subsection who sustains the loss or
19 damage of any property occasioned by reason of the issuance
20 of a tax deed, without fault or negligence of his or her
21 own, may recover has the right to indemnity limited to the
22 lesser of the fair cash value of the property as of the
23 date the tax deed was issued, less any mortgages or liens
24 on the property, or 200% of the median sales price for
25 homes in the Chicago Metropolitan Statistical Area, as
26 established in the most recent Annual Report of a statewide

SB0845- 8 -LRB100 08076 HLH 18162 b
1 association of real estate agents and reported annually by
2 the county chief financial officer; or, in the event such
3 publication is not available, 150% of the most recent
4 median value of owner occupied housing units in Cook
5 County, as published by the United States Census Bureau and
6 reported annually by the county chief financial officer,
7 less any mortgages or liens on the property. In determining
8 the existence of fault or negligence, the court shall
9 consider whether the owner exercised ordinary reasonable
10 diligence under all of the relevant circumstances.
11 (3) In determining an award under this Section the fair
12 cash value of property less any mortgages or liens on the
13 property, the fair cash value under paragraph (1), (1.5),
14 or (2) of this subsection, or the median value of a
15 single-family residential property under paragraph (2) of
16 this Section, less any mortgages or liens, shall be reduced
17 by the principal amount of all taxes paid by the tax
18 purchaser or his or her assignee before the issuance of the
19 tax deed.
20 (4) If an award made under this Section paragraph (1)
21 or (2) is subject to a reduction by the amount of an
22 outstanding mortgage or lien on the property, other than
23 the principal amount of all taxes paid by the tax purchaser
24 or his or her assignee before the issuance of the tax deed
25 and the petitioner would be personally liable to the
26 mortgagee or lienholder for all or part of that reduction

SB0845- 9 -LRB100 08076 HLH 18162 b
1 amount, the court shall order an additional indemnity award
2 to be paid directly to the mortgagee or lienholder
3 sufficient to discharge the petitioner's personal
4 liability. The court, in its discretion, may order the
5 joinder of the mortgagee or lienholder as an additional
6 party to the indemnity action.
7 (b) Indemnity fund proceedings; subrogation.
8 (1) Any person claiming indemnity hereunder shall
9 petition the Court which ordered the tax deed to issue,
10 shall name the County Treasurer, as Trustee of the
11 indemnity fund, as defendant to the petition, and shall ask
12 that judgment be entered against the County Treasurer, as
13 Trustee, in the amount of the indemnity sought. The
14 provisions of the Civil Practice Law shall apply to
15 proceedings under the petition, except that neither the
16 petitioner nor County Treasurer shall be entitled to trial
17 by jury on the issues presented in the petition. The Court
18 shall liberally construe this Section to provide
19 compensation wherever in the discretion of the Court the
20 equities warrant such action.
21 (2) The County Treasurer, as Trustee of the indemnity
22 fund, shall be subrogated to all parties in whose favor
23 judgment may be rendered against him or her, and by third
24 party complaint may bring in as a defendant any person,
25 other than the tax deed grantee and its successors in
26 title, not a party to the action who is or may be liable to

SB0845- 10 -LRB100 08076 HLH 18162 b
1 him or her, as subrogee, for all or part of the
2 petitioner's claim against him or her.
3 (c) Any contract involving the proceeds of a judgment for
4indemnity under this Section, between the tax deed grantee or
5its successors in title and the indemnity petitioner or his or
6her successors, shall be in writing. In any action brought
7under Section 21-305, the Collector shall be entitled to
8discovery regarding, but not limited to, the following:
9 (1) the identity of all persons beneficially
10 interested in the contract, directly or indirectly,
11 including at least the following information: the names and
12 addresses of any natural persons; the place of
13 incorporation of any corporation and the names and
14 addresses of its shareholders unless it is publicly held;
15 the names and addresses of all general and limited partners
16 of any partnership; the names and addresses of all persons
17 having an ownership interest in any entity doing business
18 under an assumed name, and the county in which the assumed
19 business name is registered; and the nature and extent of
20 the interest in the contract of each 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 and

SB0845- 11 -LRB100 08076 HLH 18162 b
1 relationship of the party that the person represented in
2 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
6to protective order as deemed appropriate by the court. The
7terms of the contract shall not be used as evidence of value.
8 (d) A petition of indemnity under this Section must be
9filed within 10 years after the date the tax deed was issued.
10 (e) The changes made to this Section by this amendatory Act
11of the 100th General Assembly apply only to tax sales commenced
12on or after February 1, 2018.
13(Source: P.A. 97-557, eff. 7-1-12.)
14 (35 ILCS 200/21-310)
15 Sec. 21-310. Sales in error.
16 (a) When, upon application of the county collector, the
17owner of the certificate of purchase, or a municipality which
18owns or has owned the property ordered sold, it appears to the
19satisfaction of the court which ordered the property sold that
20any of the following subsections are applicable, the court
21shall declare the sale to be a sale in error:
22 (1) the property was not subject to taxation, or all or
23 any part of the lien of taxes sold has become null and void
24 pursuant to Section 21-95 or unenforceable pursuant to
25 subsection (c) of Section 18-250 or subsection (b) of

SB0845- 12 -LRB100 08076 HLH 18162 b
1 Section 22-40,
2 (2) the taxes or special assessments had been paid
3 prior to the sale of the property,
4 (3) there is a double assessment,
5 (4) the description is void for uncertainty,
6 (5) the assessor, chief county assessment officer,
7 board of review, board of appeals, or other county official
8 has made an error (other than an error of judgment as to
9 the value of any property or an error the court finds is
10 immaterial),
11 (5.5) the owner of the homestead property had tendered
12 timely and full payment to the county collector that the
13 owner reasonably believed was due and owing on the
14 homestead property, and the county collector did not apply
15 the payment to the homestead property; provided that this
16 provision applies only to homeowners, not their agents or
17 third-party payors,
18 (6) prior to the tax sale a voluntary or involuntary
19 petition has been filed by or against the legal or
20 beneficial owner of the property requesting relief under
21 the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13, and
22 that petition is pending on the date of the application for
23 judgment and order of sale or the date of the tax sale,
24 (7) the property is owned by the United States, the
25 State of Illinois, a municipality, or a taxing district, or
26 (8) the owner of the property is a reservist or

SB0845- 13 -LRB100 08076 HLH 18162 b
1 guardsperson who is granted an extension of his or her due
2 date under Sections 21-15, 21-20, and 21-25 of this Act.
3 (b) When, upon application of the owner of the certificate
4of purchase only, it appears to the satisfaction of the court
5which ordered the property sold that any of the following
6subsections are applicable, the court shall declare the sale to
7be a sale in error:
8 (1) A voluntary or involuntary petition under the
9 provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
10 filed subsequent to the tax sale and prior to the issuance
11 of the tax deed, and that petition is pending or was
12 terminated no more than 120 days prior to the date on which
13 the petition for sale in error is filed.
14 (2) The improvements upon the property sold have been
15 substantially destroyed or rendered uninhabitable or
16 otherwise unfit for occupancy subsequent to the tax sale
17 and prior to the issuance of the tax deed.
18 (3) There is an interest held by the United States in
19 the property sold which could not be extinguished by the
20 tax deed.
21 (4) The real property contains a hazardous substance,
22 hazardous waste, or underground storage tank that would
23 require cleanup or other removal under any federal, State,
24 or local law, ordinance, or regulation, only if the tax
25 purchaser purchased the property without actual knowledge
26 of the hazardous substance, hazardous waste, or

SB0845- 14 -LRB100 08076 HLH 18162 b
1 underground storage tank. This paragraph (4) applies only
2 if the owner of the certificate of purchase has made
3 application for a sale in error at any time before the
4 issuance of a tax deed.
5 (c) When the county collector discovers, prior to the
6expiration of the period of redemption, that a tax sale should
7not have occurred for one or more of the reasons set forth in
8subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
9the county collector shall notify the last known owner of the
10certificate of purchase by certified and regular mail, or other
11means reasonably calculated to provide actual notice, that the
12county collector intends to declare an administrative sale in
13error and of the reasons therefor, including documentation
14sufficient to establish the reason why the sale should not have
15occurred. The owner of the certificate of purchase may object
16in writing within 28 days after the date of the mailing by the
17county collector. If an objection is filed, the county
18collector shall not administratively declare a sale in error,
19but may apply to the circuit court for a sale in error as
20provided in subsection (a) of this Section. Thirty days
21following the receipt of notice by the last known owner of the
22certificate of purchase, or within a reasonable time
23thereafter, the county collector shall make a written
24declaration, based upon clear and convincing evidence, that the
25taxes were sold in error and shall deliver a copy thereof to
26the county clerk within 30 days after the date the declaration

SB0845- 15 -LRB100 08076 HLH 18162 b
1is made for entry in the tax judgment, sale, redemption, and
2forfeiture record pursuant to subsection (d) of this Section.
3The county collector shall promptly notify the last known owner
4of the certificate of purchase of the declaration by regular
5mail and shall promptly pay the amount of the tax sale,
6together with interest and costs as provided in Section 21-315,
7upon surrender of the original certificate of purchase.
8 (d) If a sale is declared to be a sale in error, the county
9clerk shall make entry in the tax judgment, sale, redemption
10and forfeiture record, that the property was erroneously sold,
11and the county collector shall, on demand of the owner of the
12certificate of purchase, refund the amount paid, pay any
13interest and costs as may be ordered under Sections 21-315
14through 21-335, and cancel the certificate so far as it relates
15to the property. The county collector shall deduct from the
16accounts of the appropriate taxing bodies their pro rata
17amounts paid.
18 (e) The changes made to this Section by this amendatory Act
19of the 100th General Assembly apply only to tax sales commenced
20on or after February 1, 2018.
21(Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06;
2295-331, eff. 8-21-07.)
23 Section 99. Effective date. This Act takes effect upon
24becoming law.
feedback