Bill Text: IL SB1710 | 2011-2012 | 97th General Assembly | Amended


Bill Title: Amends the Property Tax Code. Provides that all tax sales that are not conducted using automated means shall be videotaped. In a Section concerning penalty bids, provides that the collector may, at his or her discretion, declare the taxes forfeited if multiple simultaneous bids of the same percentage are made and those bids are the lowest. Provides that, if there are multiple bids for 0%, then the collector shall randomly select one of the bidders to be the purchaser of the property. Provides that, during the sale, each bidder's penalty percentage shall be disclosed to the other bidders. Provides that bidders shall have the opportunity to reduce their bids during the sale after previous bids have been disclosed. Provides that a record of the winning bid and the name of the tax purchaser shall be open to public inspection.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB1710 Detail]

Download: Illinois-2011-SB1710-Amended.html

Sen. William R. Haine

Filed: 3/8/2011

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1
AMENDMENT TO SENATE BILL 1710
2 AMENDMENT NO. ______. Amend Senate Bill 1710 by replacing
3everything after the enacting clause with the following:
4 "Section 5. The Property Tax Code is amended by changing
5Sections 21-205, 21-215, 21-310, and 21-315 as follows:
6 (35 ILCS 200/21-205)
7 Sec. 21-205. Tax sale procedures. The collector, in person
8or by deputy, shall attend, on the day and in the place
9specified in the notice for the sale of property for taxes, and
10shall, between 9:00 a.m. and 4:00 p.m., or later at the
11collector's discretion, proceed to offer for sale, separately
12and in consecutive order, all property in the list on which the
13taxes, special assessments, interest or costs have not been
14paid. However, in any county with 3,000,000 or more
15inhabitants, the offer for sale shall be made between 8:00 a.m.
16and 8:00 p.m. The collector's office shall be kept open during

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1all hours in which the sale is in progress. The sale shall be
2continued from day to day, until all property in the delinquent
3list has been offered for sale. However, any city, village or
4incorporated town interested in the collection of any tax or
5special assessment, may, in default of bidders, withdraw from
6collection the special assessment levied against any property
7by the corporate authorities of the city, village or
8incorporated town. In case of a withdrawal, there shall be no
9sale of that property on account of the delinquent special
10assessment thereon.
11 In every sale of property pursuant to the provisions of
12this Code, the collector may employ any automated means that
13the collector deems appropriate, provided that bidders are
14required to personally attend the sale and, in counties with
15less than 3,000,000 inhabitants, the automated means must be
16certified by the Department. On and after the effective date of
17this amendatory Act of the 97th General Assembly, all tax sales
18in counties with less than 3,000,000 inhabitants shall be
19videotaped with audio. The changes made by this amendatory Act
20of the 94th General Assembly are declarative of existing law.
21(Source: P.A. 94-922, eff. 1-1-07.)
22 (35 ILCS 200/21-215)
23 Sec. 21-215. Penalty bids. The person at the sale offering
24to pay the amount due on each property for the least penalty
25percentage shall be the purchaser of that property. No bid

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1shall be accepted for a penalty exceeding 18% of the amount of
2the tax or special assessment on property. The collector may,
3at his or her discretion, declare the taxes forfeited if
4multiple simultaneous bids of the same percentage are made and
5subsequent lower bids are not made. However, if there are
6multiple bids for 0%, then the collector shall randomly select
7one of the bidders to be the purchaser of the property. During
8the sale, in counties with less than 3,000,000 inhabitants,
9each bidder's percentage shall be disclosed to the other
10bidders. In counties with less than 3,000,000 inhabitants,
11bidders shall have the opportunity to reduce their bids during
12the sale after other bids have been disclosed. At the
13conclusion of the sale, a record of the winning bid and the
14name of the tax purchaser shall be open to public inspection.
15(Source: P.A. 86-1431; 86-1480; 88-455.)
16 (35 ILCS 200/21-310)
17 Sec. 21-310. Sales in error.
18 (a) When, upon application of the county collector, the
19owner of the certificate of purchase, or a municipality which
20owns or has owned the property ordered sold, it appears to the
21satisfaction of the court which ordered the property sold that
22any of the following subsections are applicable, the court
23shall declare the sale to be a sale in error:
24 (1) the property was not subject to taxation, or all or
25 any part of the lien of taxes sold has become null and void

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1 pursuant to Section 21-95 or unenforceable pursuant to
2 subsection (c) of Section 18-250 or subsection (b) of
3 Section 22-40,
4 (2) the taxes or special assessments had been paid
5 prior to the sale of the property,
6 (3) there is a double assessment,
7 (4) the description is void for uncertainty,
8 (5) the assessor, chief county assessment officer,
9 board of review, board of appeals, or other county official
10 has made an error (other than an error of judgment as to
11 the value of any property),
12 (5.5) the owner of the homestead property had tendered
13 timely and full payment to the county collector that the
14 owner reasonably believed was due and owing on the
15 homestead property, and the county collector did not apply
16 the payment to the homestead property; provided that this
17 provision applies only to homeowners, not their agents or
18 third-party payors,
19 (6) prior to the tax sale a voluntary or involuntary
20 petition has been filed by or against the legal or
21 beneficial owner of the property requesting relief under
22 the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
23 (7) the property is owned by the United States, the
24 State of Illinois, a municipality, or a taxing district, or
25 (8) the owner of the property is a reservist or
26 guardsperson who is granted an extension of his or her due

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1 date under Sections 21-15, 21-20, and 21-25 of this Act.
2 (b) When, upon application of the owner of the certificate
3of purchase only, it appears to the satisfaction of the court
4which ordered the property sold that any of the following
5subsections are applicable, the court shall declare the sale to
6be a sale in error:
7 (1) A voluntary or involuntary petition under the
8 provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
9 filed subsequent to the tax sale and prior to the issuance
10 of the tax deed.
11 (2) The improvements upon the property sold have been
12 substantially destroyed or rendered uninhabitable or
13 otherwise unfit for occupancy subsequent to the tax sale
14 and prior to the issuance of the tax deed.
15 (3) There is an interest held by the United States in
16 the property sold which could not be extinguished by the
17 tax deed.
18 (4) The real property contains a hazardous substance,
19 hazardous waste, or underground storage tank that would
20 require cleanup or other removal under any federal, State,
21 or local law, ordinance, or regulation, only if the tax
22 purchaser purchased the property without actual knowledge
23 of the hazardous substance, hazardous waste, or
24 underground storage tank. This paragraph (4) applies only
25 if the owner of the certificate of purchase has made
26 application for a sale in error at any time before the

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1 issuance of a tax deed.
2 (b-5) When, upon application of the owner of the property,
3it appears to the satisfaction of the court that ordered the
4property sold that any of the following conditions apply, the
5court shall declare the sale to be a sale in error:
6 (1) the sale was not videotaped as required by Section
7 21-205; or
8 (2) the sale was not held in the manner required by
9 Section 21-215.
10 Before the court may declare the sale to be a sale in error
11under this subsection (b-5), the property owner must redeem the
12property as provided in Section 21-355. Upon declaring the sale
13to be a sale in error, the court shall determine whether the
14property owner is required pay a penalty. If the court
15determines that the property owner is required to pay a
16penalty, then the court shall declare what the property owner
17owes as the equitable accrued penalty.
18 (c) When the county collector discovers, prior to the
19expiration of the period of redemption, that a tax sale should
20not have occurred for one or more of the reasons set forth in
21subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
22the county collector shall notify the last known owner of the
23certificate of purchase by certified and regular mail, or other
24means reasonably calculated to provide actual notice, that the
25county collector intends to declare an administrative sale in
26error and of the reasons therefor, including documentation

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1sufficient to establish the reason why the sale should not have
2occurred. The owner of the certificate of purchase may object
3in writing within 28 days after the date of the mailing by the
4county collector. If an objection is filed, the county
5collector shall not administratively declare a sale in error,
6but may apply to the circuit court for a sale in error as
7provided in subsection (a) of this Section. Thirty days
8following the receipt of notice by the last known owner of the
9certificate of purchase, or within a reasonable time
10thereafter, the county collector shall make a written
11declaration, based upon clear and convincing evidence, that the
12taxes were sold in error and shall deliver a copy thereof to
13the county clerk within 30 days after the date the declaration
14is made for entry in the tax judgment, sale, redemption, and
15forfeiture record pursuant to subsection (d) of this Section.
16The county collector shall promptly notify the last known owner
17of the certificate of purchase of the declaration by regular
18mail and shall promptly pay the amount of the tax sale,
19together with interest and costs as provided in Section 21-315,
20upon surrender of the original certificate of purchase.
21 (d) If a sale is declared to be a sale in error, the county
22clerk shall make entry in the tax judgment, sale, redemption
23and forfeiture record, that the property was erroneously sold,
24and the county collector shall, on demand of the owner of the
25certificate of purchase, refund the amount paid, pay any
26interest and costs as may be ordered under Sections 21-315

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1through 21-335, and cancel the certificate so far as it relates
2to the property. The county collector shall deduct from the
3accounts of the appropriate taxing bodies their pro rata
4amounts paid.
5(Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06;
695-331, eff. 8-21-07.)
7 (35 ILCS 200/21-315)
8 Sec. 21-315. Refund of costs; interest on refund.
9 (a) If a sale in error under Section 21-310, 22-35, or
1022-50 is declared, the amount refunded shall also include all
11costs paid by the owner of the certificate of purchase or his
12or her assignor which were posted to the tax judgment, sale,
13redemption and forfeiture record.
14 (b) In those cases which arise solely under grounds set
15forth in Section 21-310, the amount refunded shall also include
16interest on the refund of the amount paid for the certificate
17of purchase, except as otherwise provided in this Section.
18Interest shall be awarded and paid to the tax purchaser at the
19rate of 1% per month from the date of sale to the date of
20payment, or in an amount equivalent to the penalty interest
21which would be recovered on a redemption at the time of payment
22pursuant to the order for sale in error, whichever is less.
23Interest shall not be paid when the sale in error is made
24pursuant to paragraph (2) or (4) of subsection (b) of Section
2521-310, paragraph (1) or (2) of subsection (b-5) of Section

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121-310, Section 22-35, Section 22-50, any ground not enumerated
2in Section 21-310, or in any other case where the court
3determines that the tax purchaser had actual knowledge prior to
4the sale of the grounds on which the sale is declared to be
5erroneous.
6 (c) When the county collector files a petition for sale in
7error under Section 21-310 and mails a notice thereof by
8certified or registered mail to the last known owner of the
9certificate of purchase, any interest otherwise payable under
10this Section shall cease to accrue as of the date the petition
11is filed, unless the tax purchaser agrees to an order for sale
12in error upon the presentation of the petition to the court.
13Notices under this subsection may be mailed to the last known
14owner of the certificate of purchase. When the owner of the
15certificate of purchase contests the collector's petition
16solely to determine whether the grounds for sale in error are
17such as to support a claim for interest, the court may direct
18that the principal amount of the refund be paid to the owner of
19the certificate of purchase forthwith. If the court thereafter
20determines that a claim for interest lies under this Section,
21it shall award such interest from the date of sale to the date
22the principal amount was paid. If the owner of the certificate
23of purchase files an objection to the county collector's
24intention to declare an administrative sale in error, as
25provided under subsection (c) of Section 21-310, and,
26thereafter, the county collector elects to apply to the circuit

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1court for a sale in error under subsection (a) of Section
221-310, then, if the circuit court grants the county
3collector's application for a sale in error, the court may not
4award interest to the owner of the certificate of purchase for
5the period after the mailing date of the county collector's
6notice of intention to declare an administrative sale in error.
7(Source: P.A. 94-662, eff. 1-1-06.)".
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