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| Public Act 100-0890
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| SB3215 Enrolled | LRB100 18597 HLH 33821 b |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Property Tax Code is amended by changing |
Sections 21-310 and 21-385 as follows:
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(35 ILCS 200/21-310)
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Sec. 21-310. Sales in error.
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(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:
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(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,
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(2) the taxes or special assessments had been paid |
prior to the sale of
the property,
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(3) there is a double assessment,
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(4) the description is void for uncertainty,
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(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
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the value of any property),
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(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,
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(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,
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(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.
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(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:
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(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.
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(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.
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(3) There is an interest held by the United States in |
the property sold
which could not be extinguished by the |
tax deed.
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(4) The real property contains a hazardous
substance, |
hazardous waste, or underground storage tank that would
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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.
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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
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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
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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
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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
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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.
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(d) If a sale is declared to be a sale in error, the county
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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.
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(Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06; |
95-331, eff. 8-21-07.)
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(35 ILCS 200/21-385)
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Sec. 21-385. Extension of period of redemption. The
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purchaser or his or her assignee of property
sold for |
nonpayment of general taxes or special assessments may extend
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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
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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 such period as may be designated by the holder of the |
certificate, such period not to exceed 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
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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.
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(Source: P.A. 91-209, eff. 1-1-00; 91-554, eff. 8-14-99.)
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