Bill Text: IL SB3215 | 2017-2018 | 100th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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 the holder of the certificate of purchase to assign the certificate to the county collector, upon request of the county collector. Provides that the county collector may further assign the certificate to the county, acting as trustee for taxing districts, or to a taxing district having an interest in the taxes sold. 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 36 months.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2018-08-14 - Public Act . . . . . . . . . 100-0890 [SB3215 Detail]

Download: Illinois-2017-SB3215-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB3215 Introduced 2/15/2018, by Sen. Jason A. Barickman SYNOPSIS AS INTRODUCED:
35 ILCS 200/21-310
35 ILCS 200/21-385
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 the holder of the certificate of purchase to assign the certificate to the county collector, upon request of the county collector. Provides that the county collector may further assign the certificate to the county, acting as trustee for taxing districts, or to a taxing district having an interest in the taxes sold. 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 36 months.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
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
Sections 21-310 and 21-385 as follows:
(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.
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
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

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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,
and the county collector shall, on demand of the owner of the
certificate of purchase, refund the amount paid, 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), 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

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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. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06;
95-331, eff. 8-21-07.)
(35 ILCS 200/21-385)
Sec. 21-385. Extension of period of redemption. The
purchaser or his or her assignee of property sold for
nonpayment of general taxes or special assessments may extend
the period of redemption at any time before the expiration of
the original period of redemption, or thereafter prior to the
expiration of any extended period of redemption, for a period
which will expire not later than 3 years from the date of sale,
by filing with the county clerk of the county in which the
property is located a written notice to that effect describing
the property, stating the date of the sale and specifying the
extended period of redemption. If prior to the expiration of
the period of redemption or extended period of redemption a
petition for tax deed has been filed under Section 22-30, upon
application of the petitioner, the court shall allow the
purchaser or his or her assignee to extend the period of
redemption after expiration of the original period or any
extended period of redemption, provided that any extension
allowed will expire not later than 3 years from the date of
sale, unless the certificate has been assigned to the county

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collector by order of the court which ordered the property
sold, in which case the period of redemption shall be extended
for 36 months from the date of the assignment to the collector.
If the period of redemption is extended, the purchaser or his
or her assignee must give the notices provided for in Section
22-10 at the specified times prior to the expiration of the
extended period of redemption by causing a sheriff (or if he or
she is disqualified, a coroner) of the county in which the
property, or any part thereof, is located to serve the notices
as provided in Sections 22-15 and 22-20. The notices may also
be served as provided in Sections 22-15 and 22-20 by a special
process server appointed by the court under Section 22-15.
(Source: P.A. 91-209, eff. 1-1-00; 91-554, eff. 8-14-99.)