SB1257 100TH GENERAL ASSEMBLY

LRB100 09593 HLH 19761 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1257

Introduced 2/7/2017, by Sen. Pat McGuire

SYNOPSIS AS INTRODUCED:

35 ILCS 200/22-5
35 ILCS 200/22-10
35 ILCS 200/22-15
35 ILCS 200/22-20
35 ILCS 200/22-25
35 ILCS 200/22-45

Amends the Property Tax Code. Makes changes concerning the notice of tax sale and redemption rights and the notice of expiration of period of redemption to provide that certain information must appear in bold type. Provides that the notice of expiration of period of redemption shall also be served by conspicuously and securely posting the notice on or immediately adjacent to a principal entry door to the property. Provides that certain notices must also be sent by first class mail. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 22-5, 22-10, 22-15, 22-20, 22-25, and 22-45 as follows:

(35 ILCS 200/22-5)

Sec. 22-5. Notice of sale and redemption rights. In order to be entitled to a tax deed, within 4 months and 15 days after any sale held under this Code, the purchaser or his or her assignee shall deliver to the county clerk a notice to be given to the party in whose name the taxes are last assessed as shown by the most recent tax collector's warrant books, in at least 10 point type with headings in bold type, in the following form completely filled in:

TAKE NOTICE

County of ...............................................

Date Premises Sold ......................................

Certificate No. .........................................

Sold for General Taxes of (year) ........................

Sold for Special Assessment of (Municipality)

and special assessment number ...........................

Warrant No. ............... Inst. No. .................

THIS PROPERTY HAS BEEN SOLD FOR

DELINQUENT TAXES

Property located at .........................................

Legal Description or Property Index No. .....................

.............................................................

.............................................................

This notice is to advise you that the above property has been sold for delinquent taxes and that the period of redemption from the sale will expire on .....................

This notice is also to advise you that a petition will be filed for a tax deed which will transfer title and the right to possession of this property if redemption is not made on or before ......................................................

At the date of this notice the total amount which you must pay in order to redeem the above property is ................

YOU ARE URGED TO REDEEM IMMEDIATELY TO

PREVENT LOSS OF PROPERTY

Redemption can be made at any time on or before .... by applying to the County Clerk of .... County, Illinois at the Office of the County Clerk in ...., Illinois.

The above amount is subject to increase at 6 month intervals from the date of sale. Check with the county clerk as to the exact amount you owe before redeeming. Payment must be made by certified check, cashier's check, money order, or in cash.

In addition, the notice must contain the following information in 10 point bold type:

FOR FURTHER INFORMATION CONTACT THE COUNTY CLERK OF (INSERT COUNTY), ILLINOIS IMMEDIATELY: For further information contact the County Clerk ADDRESS:............................ TELEPHONE:..........................

...............................

Purchaser or Assignee

Dated (insert date).

Within 10 days after receipt of said notice, the county clerk shall mail to the addresses supplied by the purchaser or assignee, by both registered or certified mail and first class mail, copies of said notice to the party in whose name the taxes are last assessed as shown by the most recent tax collector's warrant books. The purchaser or assignee shall pay to the clerk postage plus the sum of $10. The clerk shall write or stamp the date of receiving the notices upon the copies of the notices, and retain one copy.

The changes to this Section made by Public Act 97-557 this amendatory Act of the 97th General Assembly apply only to tax sales that occur on or after July 1, 2012 (the effective date of Public Act 97-557) this amendatory Act of the 97th General Assembly.

The changes made to this Section by this amendatory Act of the 100th General Assembly apply only to tax sales that occur on or after the effective date of this amendatory Act of the 100th General Assembly.

(Source: P.A. 97-557, eff. 7-1-12.)

(35 ILCS 200/22-10)

Sec. 22-10. Notice of expiration of period of redemption. A purchaser or assignee shall not be entitled to a tax deed to the property sold unless, not less than 3 months nor more than 6 months prior to the expiration of the period of redemption, he or she gives notice of the sale and the date of expiration of the period of redemption to the owners, occupants, and parties interested in the property, including any mortgagee of record, as provided below.

The Notice to be given to the parties shall be in at least 10 point type with headings in bold type, in the following form completely filled in:

TAX DEED NO. .................... FILED ....................

TAKE NOTICE

County of ...............................................

Date Premises Sold ......................................

Certificate No. ........................................

Sold for General Taxes of (year) ........................

Sold for Special Assessment of (Municipality)

and special assessment number ...........................

Warrant No. ................ Inst. No. .................

THIS PROPERTY HAS BEEN SOLD FOR

DELINQUENT TAXES

Property located at .........................................

Legal Description or Property Index No. .....................

.............................................................

.............................................................

This notice is to advise you that the above property has been sold for delinquent taxes and that the period of redemption from the sale will expire on .....................

.............................................................

The amount to redeem is subject to increase at 6 month intervals from the date of sale and may be further increased if the purchaser at the tax sale or his or her assignee pays any subsequently accruing taxes or special assessments to redeem the property from subsequent forfeitures or tax sales. Check with the county clerk as to the exact amount you owe before redeeming.

This notice is also to advise you that a petition has been filed for a tax deed which will transfer title and the right to possession of this property if redemption is not made on or before ......................................................

This matter is set for hearing in the Circuit Court of this county in ...., Illinois on .....

You may be present at this hearing but your right to redeem will already have expired at that time.

YOU ARE URGED TO REDEEM IMMEDIATELY

TO PREVENT LOSS OF PROPERTY

Redemption can be made at any time on or before .... by applying to the County Clerk of ...., County, Illinois at the Office of the County Clerk in ...., Illinois.

In addition, the notice must contain the following information in 10 point bold type:

FOR FURTHER INFORMATION CONTACT THE COUNTY CLERK OF (INSERT COUNTY), ILLINOIS IMMEDIATELY For further information contact the County Clerk ADDRESS:.................... TELEPHONE:..................

..........................

Purchaser or Assignee.

Dated (insert date).

In counties with 3,000,000 or more inhabitants, the notice shall also state the address, room number and time at which the matter is set for hearing.

The changes to this Section made by Public Act 97-557 this amendatory Act of the 97th General Assembly apply only to matters in which a petition for tax deed is filed on or after July 1, 2012 (the effective date of Public Act 97-557) this amendatory Act of the 97th General Assembly.

The changes made to this Section by this amendatory Act of the 100th General Assembly apply only to tax sales that occur on or after the effective date of this amendatory Act of the 100th General Assembly.

(Source: P.A. 97-557, eff. 7-1-12.)

(35 ILCS 200/22-15)

Sec. 22-15. Service and posting of notice. The purchaser or his or her assignee shall give the notice required by Section 22-10 by causing it to be published in a newspaper as set forth in Section 22-20. In addition, the notice shall be served by a sheriff (or if he or she is disqualified, by a coroner) of the county in which the property, or any part thereof, is located or, except in Cook County, by a person who is licensed or registered as a private detective under the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 upon owners who reside on any part of the property sold by leaving a copy of the notice with those owners personally and by conspicuously and securely posting the notice on or immediately adjacent to a principal entry door to the property.

In counties of 3,000,000 or more inhabitants where a taxing district is a petitioner for tax deed pursuant to Section 21-90, in lieu of service by the sheriff or coroner the notice may be served by a special process server appointed by the circuit court as provided in this Section. The taxing district may move prior to filing one or more petitions for tax deed for appointment of such a special process server. The court, upon being satisfied that the person named in the motion is at least 18 years of age and is capable of serving notice as required under this Code, shall enter an order appointing such person as a special process server for a period of one year. The appointment may be renewed for successive periods of one year each by motion and order, and a copy of the original and any subsequent order shall be filed in each tax deed case in which a notice is served by the appointed person. Delivery of the notice to and service of the notice by the special process server shall have the same force and effect as its delivery to and service by the sheriff or coroner.

The same form of notice shall also be served, in the manner set forth under Sections 2-203, 2-204, 2-205, 2-205.1, and 2-211 of the Code of Civil Procedure, upon all other owners and parties interested in the property, if upon diligent inquiry they can be found in the county, and upon the occupants of the property.

If the property sold has more than 4 dwellings or other rental units, and has a managing agent or party who collects rents, that person shall be deemed the occupant and shall be served with notice instead of the occupants of the individual units. If the property has no dwellings or rental units, but economic or recreational activities are carried on therein, the person directing such activities shall be deemed the occupant. Holders of rights of entry and possibilities of reverter shall not be deemed parties interested in the property.

When a party interested in the property is a trustee, notice served upon the trustee shall be deemed to have been served upon any beneficiary or note holder thereunder unless the holder of the note is disclosed of record.

When a judgment is a lien upon the property sold, the holder of the lien shall be served with notice if the name of the judgment debtor as shown in the transcript, certified copy or memorandum of judgment filed of record is identical, as to given name and surname, with the name of the party interested as it appears of record.

If any owner or party interested, upon diligent inquiry and effort, cannot be found or served with notice in the county as provided in this Section, and the person in actual occupancy and possession is tenant to, or in possession under the owners or the parties interested in the property, then service of notice upon the tenant, occupant or person in possession shall be deemed service upon the owners or parties interested.

If any owner or party interested, upon diligent inquiry and effort cannot be found or served with notice in the county, then the person making the service shall cause a copy of the notice to be sent by both registered or certified mail, return receipt requested, and first class mail, to that party at his or her residence, if ascertainable.

The changes to this Section made by Public Act 95-477 apply only to matters in which a petition for tax deed is filed on or after June 1, 2008 (the effective date of Public Act 95-477).

The changes made to this Section by this amendatory Act of the 100th General Assembly apply only to tax sales that occur on or after the effective date of this amendatory Act of the 100th General Assembly.

(Source: P.A. 95-195, eff. 1-1-08; 95-477, eff. 6-1-08; 95-876, eff. 8-21-08.)

(35 ILCS 200/22-20)

Sec. 22-20. Proof of service of notice; publication of notice. The sheriff or coroner serving notice under Section 22-15 shall endorse his or her return thereon and file it with the Clerk of the Circuit Court and it shall be a part of the court record. A private detective or a special process server appointed under Section 22-15 shall make his or her return by affidavit and shall file it with the Clerk of the Circuit Court, where it shall be a part of the court record. If a sheriff, private detective, special process server, or coroner to whom any notice is delivered for service, neglects or refuses to make the return, the purchaser or his or her assignee may petition the court to enter a rule requiring the sheriff, private detective, special process server, or coroner to make return of the notice on a day to be fixed by the court, or to show cause on that day why he or she should not be attached for contempt of the court. The purchaser or assignee shall cause a written notice of the rule to be served upon the sheriff, private detective, special process server, or coroner. If good and sufficient cause to excuse the sheriff, private detective, special process server, or coroner is not shown, the court shall adjudge him or her guilty of a contempt, and shall proceed to punish him as in other cases of contempt.

If the property is located in a municipality in a county with less than 3,000,000 inhabitants, the purchaser or his or her assignee shall also publish a notice as to the owner or party interested, in some newspaper published in the municipality. If the property is not in a municipality in a county with less than 3,000,000 inhabitants, or if no newspaper is published therein, or if the property is in a county with 3,000,000 or more inhabitants, the notice shall be published in some newspaper in the county. If no newspaper is published in the county, then the notice shall be published in the newspaper that is published nearest the county seat of the county in which the property is located. If the owners and parties interested in the property upon diligent inquiry are unknown to the purchaser or his or her assignee, the publication as to such owner or party interested, may be made to unknown owners or parties interested. Any notice by publication given under this Section shall be given 3 times at any time after filing a petition for tax deed, but not less than 3 months nor more than 6 months prior to the expiration of the period of redemption. The publication shall contain (a) notice of the filing of the petition for tax deed, (b) the date on which the petitioner intends to make application for an order on the petition that a tax deed issue, (c) a description of the property, (d) the date upon which the property was sold, (e) the taxes or special assessments for which it was sold and (f) the date on which the period of redemption will expire. The publication shall not include more than one property listed and sold in one description, except as provided in Section 21-90, and except that when more than one property is owned by one person, all of the parcels owned by that person may be included in one notice.

The publication shall contain: (1) the name or names of the person or party holding a recorded ownership or recorded interest in the property; (2) the property address; (3) the language "THIS PROPERTY HAS BEEN SOLD FOR DELINQUENT TAXES" in bold capital letters and in not less than 8 point type; (4) notice of the filing of the petition for tax deed; (5) the date on which the petitioner intends to make application for an order on the petition that a tax deed issue; (6) a description of the property; (7) the date upon which the property was sold; (8) the taxes or special assessment for which the property was sold; (9) the date on which the period of redemption will expire; (10) the language "YOU ARE URGED TO REDEEM IMMEDIATELY TO PREVENT LOSS OF PROPERTY. FOR FURTHER INFORMATION CONTACT THE COUNTY CLERK OF (INSERT COUNTY, IL) IMMEDIATELY" in bold capital letters and in not less than 8 point type; and (11) the address and telephone number of the office of the county clerk in bold capital letters and in not less than 8 point type.

The changes to this Section made by Public Act 95-477 apply only to matters in which a petition for tax deed is filed on or after June 1, 2008 (the effective date of Public Act 95-477).

The changes made to this Section by this amendatory Act of the 100th General Assembly apply only to tax sales that occur on or after the effective date of this amendatory Act of the 100th General Assembly.

(Source: P.A. 95-195, eff. 1-1-08; 95-477, eff. 6-1-08; 95-876, eff. 8-21-08.)

(35 ILCS 200/22-25)

Sec. 22-25. Mailed notice. In addition to the notice required to be served not less than 3 months nor more than 6 months prior to the expiration of the period of redemption, the purchaser or his or her assignee shall prepare and deliver to the clerk of the Circuit Court of the county in which the property is located, the notice provided for in this Section, together with the statutory costs for mailing the notice by both certified mail, return receipt requested, and first class mail. The form of notice to be mailed by the clerk shall be identical in form to that provided by Section 22-10 for service upon owners residing upon the property sold, except that it shall bear the signature of the clerk instead of the name of the purchaser or assignee and shall designate the parties to whom it is to be mailed. The clerk may furnish the form. The clerk shall promptly mail the notices delivered to him or her by both certified mail, return receipt requested, and first class mail. The certificate of the clerk that he or she has mailed the notices, together with the return receipts, shall be filed in and made a part of the court record. The notices shall be mailed to the owners of the property at their last known addresses, and to those persons who are entitled to service of notice as occupants.

The changes to this Section made by Public Act 97-557 this amendatory Act of the 97th General Assembly shall be construed as being declaratory of existing law and not as a new enactment.

The changes made to this Section by this amendatory Act of the 100th General Assembly apply only to tax sales that occur on or after the effective date of this amendatory Act of the 100th General Assembly.

(Source: P.A. 97-557, eff. 7-1-12.)

(35 ILCS 200/22-45)

Sec. 22-45. Tax deed incontestable unless order appealed or relief petitioned. Tax deeds issued under Section 22-40 are incontestable except by appeal from the order of the court directing the county clerk to issue the tax deed. However, relief from such order may be had under Sections 2-1203 or 2-1401 of the Code of Civil Procedure in the same manner and to the same extent as may be had under those Sections with respect to final orders and judgments in other proceedings. The grounds for relief under Section 2-1401 shall be limited to:

(1) proof that the taxes were paid prior to sale;

(2) proof that the property was exempt from taxation;

(3) proof by clear and convincing evidence that the tax deed had been procured by fraud or deception by the tax purchaser or his or her assignee; or

(4) proof by a person or party holding a recorded ownership or other recorded interest in the property that he or she was not named as a party in the publication notice as required by set forth in Section 22-20, and that the tax purchaser or his or her assignee did not make a diligent inquiry and effort to serve that person or party with the notices required by Sections 22-10 through 22-30.

In cases of the sale of homestead property in counties with 3,000,000 or more inhabitants, a tax deed may also be voided by the court upon petition, filed not more than 3 months after an order for tax deed was entered, if the court finds that the property was owner occupied on the expiration date of the period of redemption and that the order for deed was effectuated pursuant to a negligent or willful error made by an employee of the county clerk or county collector during the period of redemption from the sale that was reasonably relied upon to the detriment of any person having a redeemable interest. In such a case, the tax purchaser shall be entitled to the original amount required to redeem the property plus interest from the sale as of the last date of redemption together with costs actually expended subsequent to the expiration of the period of redemption and reasonable attorney's fees, all of which shall be dispensed from the fund created by Section 21-295. In those cases of error where the court vacates the tax deed, it may award the petitioner reasonable attorney's fees and court costs actually expended, payable from that fund. The court hearing a petition filed under this Section or Section 2-1401 of the Code of Civil Procedure may concurrently hear a petition filed under Section 21-295 and may grant relief under any Section.

Public Act 95-477 This amendatory Act of the 95th General Assembly shall be construed as being declarative of existing law and not as a new enactment.

The changes made to this Section by this amendatory Act of the 100th General Assembly apply only to tax sales that occur on or after the effective date of this amendatory Act of the 100th General Assembly.

(Source: P.A. 95-477, eff. 6-1-08.)

Section 99. Effective date. This Act takes effect upon becoming law.