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| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3535 Introduced 2/14/2014, by Sen. Mike Jacobs SYNOPSIS AS INTRODUCED:
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Amends the Property Tax Code. Provides that, when a court declares a sale in error upon application of the owner of the certificate of purchase, the court shall promptly notify the county collector in writing.
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| | A BILL FOR |
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| | SB3535 | | LRB098 19575 HLH 54765 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by changing |
| 5 | | Section 21-310 as follows:
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| 6 | | (35 ILCS 200/21-310)
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| 7 | | Sec. 21-310. Sales in error.
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| 8 | | (a) When, upon application of the county collector, the |
| 9 | | owner of the
certificate of purchase, or a
municipality which |
| 10 | | owns or has owned the property ordered sold, it appears to
the |
| 11 | | satisfaction of the court which ordered the property sold that |
| 12 | | any of the
following subsections are applicable, the court |
| 13 | | shall declare the sale to be a
sale in error:
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| 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,
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| 19 | | (2) the taxes or special assessments had been paid |
| 20 | | prior to the sale of
the property,
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| 21 | | (3) there is a double assessment,
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| 22 | | (4) the description is void for uncertainty,
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| 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
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| 3 | | the value of any property),
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| 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,
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| 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,
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| 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.
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| 20 | | (b) When, upon application of the owner of the certificate |
| 21 | | of purchase
only, it appears to the satisfaction of the court |
| 22 | | which ordered the property
sold that any of the following |
| 23 | | subsections are applicable, the court shall
declare the sale to |
| 24 | | be a sale in error:
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| 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.
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| 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.
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| 7 | | (3) There is an interest held by the United States in |
| 8 | | the property sold
which could not be extinguished by the |
| 9 | | tax deed.
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| 10 | | (4) The real property contains a hazardous
substance, |
| 11 | | hazardous waste, or underground storage tank that would
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| 12 | | require cleanup or other removal under any federal,
State, |
| 13 | | or local law, ordinance, or regulation, only if the tax |
| 14 | | purchaser
purchased the property without actual knowledge |
| 15 | | of the hazardous substance,
hazardous waste, or |
| 16 | | underground storage tank. This paragraph (4) applies only |
| 17 | | if the owner of the
certificate of purchase has made |
| 18 | | application for a sale in error at any time
before the |
| 19 | | issuance of a tax deed.
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| 20 | | Whenever a court declares a sale in error under this |
| 21 | | subsection (b), the court shall promptly notify the county |
| 22 | | collector in writing. |
| 23 | | (c) When the county collector discovers, prior to the |
| 24 | | expiration of the period of redemption, that a tax sale
should |
| 25 | | not have occurred for one or more of the reasons set forth in
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| 26 | | subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, |
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| 1 | | the county
collector shall notify the last known owner of the |
| 2 | | certificate of purchase by
certified and regular mail, or other |
| 3 | | means reasonably calculated to provide
actual notice, that the |
| 4 | | county collector intends to declare an administrative
sale in |
| 5 | | error and of the reasons therefor, including documentation |
| 6 | | sufficient
to establish the reason why the sale should not have |
| 7 | | occurred. The owner of the
certificate of purchase may object |
| 8 | | in writing within 28 days after the date of
the mailing by the |
| 9 | | county collector. If an objection is filed, the county
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| 10 | | collector shall not administratively declare a sale in error, |
| 11 | | but may apply to
the circuit court for a sale in error as |
| 12 | | provided in subsection (a) of this
Section. Thirty days |
| 13 | | following the receipt of notice by the last known owner of
the |
| 14 | | certificate of purchase, or within a reasonable time |
| 15 | | thereafter, the county
collector shall make a written |
| 16 | | declaration, based upon clear and convincing
evidence, that the |
| 17 | | taxes were sold in error and shall deliver a copy thereof to
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| 18 | | the county clerk within 30 days after the date the declaration |
| 19 | | is made for
entry in the tax judgment, sale, redemption, and |
| 20 | | forfeiture record pursuant to
subsection (d) of this Section. |
| 21 | | The county collector shall promptly notify the
last known owner |
| 22 | | of the certificate of purchase of the declaration by regular
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| 23 | | mail and shall promptly pay the amount of the tax sale, |
| 24 | | together with interest
and costs as provided in Section 21-315, |
| 25 | | upon surrender of the original
certificate of purchase.
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| 26 | | (d) If a sale is declared to be a sale in error, the county
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| 1 | | clerk shall make entry in the tax judgment, sale, redemption |
| 2 | | and
forfeiture record, that the property was erroneously sold, |
| 3 | | and the county
collector shall, on demand of the owner of the |
| 4 | | certificate of purchase, refund
the amount paid, pay any |
| 5 | | interest and costs as may be ordered under Sections
21-315 |
| 6 | | through 21-335, and cancel the certificate so far as it relates |
| 7 | | to the
property. The county collector shall deduct from the |
| 8 | | accounts of the
appropriate taxing bodies their pro rata |
| 9 | | amounts paid.
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| 10 | | (Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06; |
| 11 | | 95-331, eff. 8-21-07.)
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