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Public Act 094-0312


 

Public Act 0312 94TH GENERAL ASSEMBLY



 


 
Public Act 094-0312
 
HB0551 Enrolled LRB094 06728 BDD 36827 b

    AN ACT concerning taxes.
 
    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 21-15, 21-20, 21-25, 21-30, and 21-310 as follows:
 
    (35 ILCS 200/21-15)
    Sec. 21-15. General tax due dates; default by mortgage
lender. Except as otherwise provided in this Section or Section
21-40, all property upon which the first installment of taxes
remains unpaid on June 1 annually shall be deemed delinquent
and shall bear interest after June 1 at the rate of 1 1/2% per
month or portion thereof. Except as otherwise provided in this
Section or Section 21-40, all property upon which the second
installment of taxes remains due and unpaid on September 1,
annually, shall be deemed delinquent and shall bear interest
after September 1 at the same interest rate. All interest
collected shall be paid into the general fund of the county.
Payment received by mail and postmarked on or before the
required due date is not delinquent.
    Property not subject to the interest charge in Section
9-260 or Section 9-265 shall also not be subject to the
interest charge imposed by this Section until such time as the
owner of the property receives actual notice of and is billed
for the principal amount of back taxes due and owing.
    If an Illinois resident who is a member of the Illinois
National Guard or a reserve component of the armed forces of
the United States and who has an ownership interest in property
taxed under this Act is called to active duty for deployment
outside the continental United States and is on active duty on
the due date of any installment of taxes due under this Act, he
or she shall not be deemed delinquent in the payment of the
installment and no interest shall accrue or be charged as a
penalty on the installment until 180 30 days after that member
returns from active duty. To be deemed not delinquent in the
payment of an installment of taxes and any interest on that
installment, the reservist or guardsperson must make a
reasonable effort to notify the county clerk and the county
collector of his or her activation to active duty and must
notify the county clerk and the county collector within 180
days after his or her deactivation and provide verification of
the date of his or her deactivation. An installment of property
taxes on the property of any reservist or guardsperson who
fails to provide timely notice and verification of deactivation
to the county clerk is subject to interest and penalties as
delinquent taxes under this Code from the date of deactivation.
    Notwithstanding any other provision of law, when any unpaid
taxes become delinquent under this Section through the fault of
the mortgage lender, (i) the interest assessed under this
Section for delinquent taxes shall be charged against the
mortgage lender and not the mortgagor and (ii) the mortgage
lender shall pay the taxes, redeem the property and take all
necessary steps to remove any liens accruing against the
property because of the delinquency. In the event that more
than one entity meets the definition of mortgage lender with
respect to any mortgage, the interest shall be assessed against
the mortgage lender responsible for servicing the mortgage.
Unpaid taxes shall be deemed delinquent through the fault of
the mortgage lender only if: (a) the mortgage lender has
received all payments due the mortgage lender for the property
being taxed under the written terms of the mortgage or
promissory note secured by the mortgage, (b) the mortgage
lender holds funds in escrow to pay the taxes, and (c) the
funds are sufficient to pay the taxes after deducting all
amounts reasonably anticipated to become due for all hazard
insurance premiums and mortgage insurance premiums and any
other assessments to be paid from the escrow under the terms of
the mortgage. For purposes of this Section, an amount is
reasonably anticipated to become due if it is payable within 12
months from the time of determining the sufficiency of funds
held in escrow. Unpaid taxes shall not be deemed delinquent
through the fault of the mortgage lender if the mortgage lender
was directed in writing by the mortgagor not to pay the
property taxes, or if the failure to pay the taxes when due
resulted from inadequate or inaccurate parcel information
provided by the mortgagor, a title or abstract company, or by
the agency or unit of government assessing the tax.
(Source: P.A. 93-560, eff. 8-20-03.)
 
    (35 ILCS 200/21-20)
    Sec. 21-20. Due dates; accelerated billing in counties of
less than 3,000,000. Except as otherwise provided in Section
21-40, in counties with less than 3,000,000 inhabitants in
which the accelerated method of billing and paying taxes
provided for in Section 21-30 is in effect, the estimated first
installment of unpaid taxes shall be deemed delinquent and
shall bear interest after a date not later than June 1 annually
as provided for in the ordinance or resolution of the county
board adopting the accelerated method, at the rate of 1 1/2%
per month or portion thereof until paid or forfeited. The
second installment of unpaid taxes shall be deemed delinquent
and shall bear interest after August 1 annually at the same
interest rate until paid or forfeited. Payment received by mail
and postmarked on or before the required due date is not
delinquent.
    If an Illinois resident who is a member of the Illinois
National Guard or a reserve component of the armed forces of
the United States and who has an ownership interest in property
taxed under this Act is called to active duty for deployment
outside the continental United States and is on active duty on
the due date of any installment of taxes due under this Act, he
or she shall not be deemed delinquent in the payment of the
installment and no interest shall accrue or be charged as a
penalty on the installment until 180 30 days after that member
returns from active duty. To be deemed not delinquent in the
payment of an installment of taxes and any interest on that
installment, the reservist or guardsperson must make a
reasonable effort to notify the county clerk and the county
collector of his or her activation to active duty and must
notify the county clerk and the county collector within 180
days after his or her deactivation and provide verification of
the date of his or her deactivation. An installment of property
taxes on the property of any reservist or guardsperson who
fails to provide timely notice and verification of deactivation
to the county clerk is subject to interest and penalties as
delinquent taxes under this Code from the date of deactivation.
(Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)
 
    (35 ILCS 200/21-25)
    Sec. 21-25. Due dates; accelerated billing in counties of
3,000,000 or more. Except as hereinafter provided and as
provided in Section 21-40, in counties with 3,000,000 or more
inhabitants in which the accelerated method of billing and
paying taxes provided for in Section 21-30 is in effect, the
estimated first installment of unpaid taxes shall be deemed
delinquent and shall bear interest after March 1 at the rate of
1 1/2% per month or portion thereof until paid or forfeited.
The second installment of unpaid taxes shall be deemed
delinquent and shall bear interest after August 1 annually at
the same interest rate until paid or forfeited.
    If the county board elects by ordinance adopted prior to
July 1 of a levy year to provide for taxes to be paid in 4
installments, each installment for that levy year and each
subsequent year shall be deemed delinquent and shall begin to
bear interest 30 days after the date specified by the ordinance
for mailing bills, at the rate of 1 1/2% per month or portion
thereof, until paid or forfeited.
    Payment received by mail and postmarked on or before the
required due date is not delinquent.
    Taxes levied on homestead property in which a member of the
National Guard or reserves of the armed forces of the United
States who was called to active duty on or after August 1,
1990, and who has an ownership interest, shall not be deemed
delinquent and no interest shall accrue or be charged as a
penalty on such taxes due and payable in 1991 or 1992 until one
year after that member returns to civilian status.
    If an Illinois resident who is a member of the Illinois
National Guard or a reserve component of the armed forces of
the United States and who has an ownership interest in property
taxed under this Act is called to active duty for deployment
outside the continental United States and is on active duty on
the due date of any installment of taxes due under this Act, he
or she shall not be deemed delinquent in the payment of the
installment and no interest shall accrue or be charged as a
penalty on the installment until 180 30 days after that member
returns to civilian status. To be deemed not delinquent in the
payment of an installment of taxes and any interest on that
installment, the reservist or guardsperson must make a
reasonable effort to notify the county clerk and the county
collector of his or her activation to active duty and must
notify the county clerk and the county collector within 180
days after his or her deactivation and provide verification of
the date of his or her deactivation. An installment of property
taxes on the property of any reservist or guardsperson who
fails to provide timely notice and verification of deactivation
to the county clerk is subject to interest and penalties as
delinquent taxes under this Code from the date of deactivation.
(Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)
 
    (35 ILCS 200/21-30)
    Sec. 21-30. Accelerated billing. Except as provided in this
Section, Section 9-260, and Section 21-40, in counties with
3,000,000 or more inhabitants, by January 31 annually,
estimated tax bills setting out the first installment of
property taxes for the preceding year, payable in that year,
shall be prepared and mailed. The first installment of taxes on
the estimated tax bills shall be computed at 50% of the total
of each tax bill for the preceding year. If, prior to the
preparation of the estimated tax bills, a certificate of error
has been either approved by a court on or before November 30 of
the preceding year or certified pursuant to Section 14-15 on or
before November 30 of the preceding year, then the first
installment of taxes on the estimated tax bills shall be
computed at 50% of the total taxes for the preceding year as
corrected by the certificate of error. By June 30 annually,
actual tax bills shall be prepared and mailed. These bills
shall set out total taxes due and the amount of estimated taxes
billed in the first installment, and shall state the balance of
taxes due for that year as represented by the sum derived from
subtracting the amount of the first installment from the total
taxes due for that year.
    The county board may provide by ordinance, in counties with
3,000,000 or more inhabitants, for taxes to be paid in 4
installments. For the levy year for which the ordinance is
first effective and each subsequent year, estimated tax bills
setting out the first, second, and third installment of taxes
for the preceding year, payable in that year, shall be prepared
and mailed not later than the date specified by ordinance. Each
installment on estimated tax bills shall be computed at 25% of
the total of each tax bill for the preceding year. By the date
specified in the ordinance, actual tax bills shall be prepared
and mailed. These bills shall set out total taxes due and the
amount of estimated taxes billed in the first, second, and
third installments and shall state the balance of taxes due for
that year as represented by the sum derived from subtracting
the amount of the estimated installments from the total taxes
due for that year.
    The county board of any county with less than 3,000,000
inhabitants may, by ordinance or resolution, adopt an
accelerated method of tax billing. The county board may
subsequently rescind the ordinance or resolution and revert to
the method otherwise provided for in this Code.
    Taxes levied on homestead property in which a member of the
National Guard or reserves of the armed forces of the United
States who was called to active duty on or after August 1,
1990, and who has an ownership interest shall not be deemed
delinquent and no interest shall accrue or be charged as a
penalty on such taxes due and payable in 1991 or 1992 until one
year after that member returns to civilian status.
(Source: P.A. 92-475, eff. 8-23-01; 93-560, eff. 8-20-03.)
 
    (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,
    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, or
        (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
    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.
        (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
    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.
    (c) When the county collector discovers, within one year
after the date of sale if taxes were sold at an annual tax sale
or within 180 days after the date of sale if taxes were sold at
a scavenger tax sale, 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
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.
(Source: P.A. 91-177, eff. 1-1-00; 91-357, eff. 7-29-99;
91-924, eff. 1-1-01; 92-224, eff. 1-1-02; 92-729, eff.
7-25-02.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 07/25/2005