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91_SB1693enr
SB1693 Enrolled LRB9110187SMdv
1 AN ACT concerning taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Sections 21-295, 21-310 and 21-355 as follows:
6 (35 ILCS 200/21-295)
7 Sec. 21-295. Creation of indemnity fund.
8 (a) In counties of less than 3,000,000 inhabitants, each
9 person purchasing any property at a sale under this Code
10 shall pay to the County Collector, prior to the issuance of
11 any certificate of purchase, a fee of $20 for each item
12 purchased. A like sum shall be paid for each year that all
13 or a portion of subsequent taxes are paid by the tax
14 purchaser and posted to the tax judgment, sale, redemption
15 and forfeiture record where the underlying certificate of
16 purchase is recorded.
17 (a-5) In counties of 3,000,000 or more inhabitants, each
18 person purchasing property at a sale under this Code shall
19 pay to the County Collector a fee of $80 for each item
20 purchased plus an additional sum equal to 5% of total taxes,
21 interest, and penalties paid by the purchaser, including the
22 taxes, interest, and penalties paid under Section 21-240. In
23 these counties, the certificate holder shall also pay to the
24 County Collector a fee of $80 for each year that all or a
25 portion of subsequent taxes are paid by the tax purchaser and
26 posted to the tax judgment, sale, redemption, and forfeiture
27 record, plus an additional sum equal to 5% of all subsequent
28 taxes, interest, and penalties. The additional 5% fees are
29 fee is not required after December 31, 2006. The changes to
30 this subsection made by this amendatory Act of the 91st
31 General Assembly are not a new enactment, but declaratory of
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1 existing law.
2 (b) The amount paid prior to issuance of the certificate
3 of purchase pursuant to subsection (a) or (a-5) shall be
4 included in the purchase price of the property in the
5 certificate of purchase and all amounts paid under this
6 Section shall be included in the amount required to redeem
7 under Section 21-355. Except as otherwise provided in
8 subsection (b) of Section 21-300, all money received under
9 subsection (a) or (a-5) shall be paid by the Collector to the
10 County Treasurer of the County in which the land is situated,
11 for the purpose of an indemnity fund. The County Treasurer,
12 as trustee of that fund, shall invest all of that fund,
13 principal and income, in his or her hands from time to time,
14 if not immediately required for payments of indemnities under
15 subsection (a) of Section 21-305, in investments permitted by
16 the Illinois State Board of Investment under Article 22A of
17 the Illinois Pension Code. The county collector shall report
18 annually to the Circuit Court on the condition and income of
19 the fund. The indemnity fund shall be held to satisfy
20 judgments obtained against the County Treasurer, as trustee
21 of the fund. No payment shall be made from the fund, except
22 upon a judgment of the court which ordered the issuance of a
23 tax deed.
24 (Source: P.A. 91-564, eff. 8-14-99.)
25 (35 ILCS 200/21-310)
26 Sec. 21-310. Sales in error.
27 (a) When, upon application of the county collector, the
28 owner of the certificate of purchase tax purchaser, or a
29 municipality which owns or has owned the property ordered
30 sold, it appears to the satisfaction of the court which
31 ordered the property sold that any of the following
32 subsections are applicable, the court shall declare the sale
33 to be a sale in error:
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1 (1) the property was not subject to taxation,
2 (2) the taxes or special assessments had been paid
3 prior to the sale of the property,
4 (3) there is a double assessment,
5 (4) the description is void for uncertainty,
6 (5) the assessor, chief county assessment officer,
7 board of review, or board of appeals, or other county
8 official has made an error (other than an error of
9 judgment as to the value of any property),
10 (5.5) the owner of the homestead property had
11 tendered timely and full payment to the county collector
12 that the owner reasonably believed was due and owing on
13 the homestead property, and the county collector did not
14 apply the payment to the homestead property; provided
15 that this provision applies only to homeowners, not their
16 agents or third-party payors,
17 (6) prior to the tax sale a voluntary or
18 involuntary petition has been filed by or against the
19 legal or beneficial owner of the property requesting
20 relief under the provisions of 11 U.S.C. Chapter 7, 11,
21 12, or 13, or
22 (7) a municipality has acquired the property (i)
23 through the foreclosure of a lien authorized under
24 Section 11-31-1 of the Illinois Municipal Code or through
25 a judicial deed issued under that Section or (ii) through
26 foreclosure of a receivership certificate lien.
27 (b) When, upon application of the owner of the
28 certificate of purchase tax purchaser or his or her assignee
29 only, it appears to the satisfaction of the court which
30 ordered the property sold that any of the following
31 subsections are applicable, the court shall declare the sale
32 to be a sale in error:
33 (1) A voluntary or involuntary petition under the
34 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
2 issuance of the tax deed.
3 (2) The improvements upon the property sold have
4 been 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.
7 (3) There is an interest held by the United States
8 in the property sold which could not be extinguished by
9 the tax deed.
10 (4) The real property contains a hazardous
11 substance, hazardous waste, or underground storage tank
12 that would require cleanup or other removal under any
13 federal, State, or local law, ordinance, or regulation,
14 only if the tax purchaser purchased the property without
15 actual knowledge of the hazardous substance, hazardous
16 waste, or underground storage tank. This paragraph (4)
17 applies only to tax purchases occurring after January 1,
18 1990 and if the owner of the certificate of purchase tax
19 purchaser or his or her assignee has made application for
20 a sale in error at any time before the issuance of a tax
21 deed.
22 If a sale is declared to be a sale in error, the county
23 clerk shall make entry in the tax judgment, sale, redemption
24 and forfeiture record, that the property was erroneously
25 sold, and the county collector shall, on demand of the owner
26 of the certificate of purchase, refund the amount paid, pay
27 any interest and costs as may be ordered under Sections
28 21-315 through 21-335, and cancel the certificate so far as
29 it relates to the property. The county collector shall deduct
30 from the accounts of the appropriate taxing bodies their pro
31 rata amounts paid.
32 (Source: P.A. 91-177, eff. 1-1-00; 91-357, eff. 7-29-99.)
33 (35 ILCS 200/21-355)
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1 Sec. 21-355. Amount of redemption. Any person desiring
2 to redeem shall deposit an amount specified in this Section
3 with the county clerk of the county in which the property is
4 situated, in legal money of the United States, or by
5 cashier's check, certified check, post office money order or
6 money order issued by a financial institution insured by an
7 agency or instrumentality of the United States, payable to
8 the county clerk of the proper county. The deposit shall be
9 deemed timely only if actually received in person at the
10 county clerk's office prior to the close of business as
11 defined in Section 3-2007 of the Counties Code on or before
12 the expiration of the period of redemption or by United
13 States mail with a post office cancellation mark dated not
14 less than one day prior to the expiration of the period of
15 redemption. The deposit shall be in an amount equal to the
16 total of the following:
17 (a) the certificate amount, which shall include all
18 tax principal, special assessments, interest and
19 penalties paid by the tax purchaser together with costs
20 and fees of sale and fees paid under Sections 21-295 and
21 21-315 through 21-335;
22 (b) the accrued penalty, computed through the date
23 of redemption as a percentage of the certificate amount,
24 as follows:
25 (1) if the redemption occurs on or before the
26 expiration of 6 months from the date of sale, the
27 certificate amount times the penalty bid at sale;
28 (2) if the redemption occurs after 6 months
29 from the date of sale, and on or before the
30 expiration of 12 months from the date of sale, the
31 certificate amount times 2 times the penalty bid at
32 sale;
33 (3) if the redemption occurs after 12 months
34 from the date of sale and on or before the
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1 expiration of 18 months from the date of sale, the
2 certificate amount times 3 times the penalty bid at
3 sale;
4 (4) if the redemption occurs after 18 months
5 from the date of sale and on or before the
6 expiration of 24 months from the date of sale, the
7 certificate amount times 4 times the penalty bid at
8 sale;
9 (5) if the redemption occurs after 24 months
10 from the date of sale and on or before the
11 expiration of 30 months from the date of sale, the
12 certificate amount times 5 times the penalty bid at
13 sale;
14 (6) if the redemption occurs after 30 months
15 from the date of sale and on or before the
16 expiration of 36 months from the date of sale, the
17 certificate amount times 6 times the penalty bid at
18 sale.
19 In the event that the property to be redeemed
20 has been purchased under Section 21-405 21-370, the
21 penalty bid shall be 12% per penalty period as set
22 forth in subparagraphs (1) through (6) of this
23 subsection (b). The changes to this subdivision
24 (b)(6) made by this amendatory Act of the 91st
25 General Assembly are not a new enactment, but
26 declaratory of existing law.
27 (c) The total of all taxes, special assessments,
28 accrued interest on those taxes and special assessments
29 and costs charged in connection with the payment of those
30 taxes or special assessments, which have been paid by the
31 tax certificate holder on or after the date those taxes
32 or special assessments became delinquent together with
33 12% penalty on each amount so paid for each year or
34 portion thereof intervening between the date of that
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1 payment and the date of redemption. In counties with less
2 than 3,000,000 inhabitants, however, a tax certificate
3 holder may not pay all or part of an installment of a
4 subsequent tax or special assessment for any year, nor
5 shall any tender of such a payment be accepted, until
6 after the second or final installment of the subsequent
7 tax or special assessment has become delinquent or until
8 after the holder of the certificate of purchase has filed
9 a petition for a tax deed under Section 22.30. The
10 person redeeming shall also pay the amount of interest
11 charged on the subsequent tax or special assessment and
12 paid as a penalty by the tax certificate holder. This
13 amendatory Act of 1995 applies to tax years beginning
14 with the 1995 taxes, payable in 1996, and thereafter.
15 (d) Any amount paid to redeem a forfeiture
16 occurring subsequent to the tax sale together with 12%
17 penalty thereon for each year or portion thereof
18 intervening between the date of the forfeiture redemption
19 and the date of redemption from the sale.
20 (e) Any amount paid by the certificate holder for
21 redemption of a subsequently occurring tax sale.
22 (f) All fees paid to the county clerk under Section
23 22-5.
24 (g) All fees paid to the registrar of titles
25 incident to registering the tax certificate in compliance
26 with the Registered Titles (Torrens) Act.
27 (h) All fees paid to the circuit clerk and the
28 sheriff or coroner in connection with the filing of the
29 petition for tax deed and service of notices under
30 Sections 22-15 through 22-30 and 22-40 in addition to (1)
31 a fee of $35 if a petition for tax deed has been filed,
32 which fee shall be posted to the tax judgement, sale,
33 redemption, and forfeiture record, to be paid to the
34 purchaser or his or her assignee; (2) a fee of $4 if a
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1 notice under Section 22-5 has been filed, which fee shall
2 be posted to the tax judgment, sale, redemption, and
3 forfeiture record, to be paid to the purchaser or his or
4 her assignee; and (3) all costs paid to record a lis
5 pendens notice in connection with filing a petition under
6 this Code. The fees in (1) and (2) of this paragraph (h)
7 shall be exempt from the posting requirements of Section
8 21-360.
9 (i) All fees paid for publication of notice of the
10 tax sale in accordance with Section 22-20.
11 (j) All sums paid to any city, village or
12 incorporated town for reimbursement under Section 22-35.
13 (k) All costs and expenses of receivership under
14 Section 21-410, to the extent that these costs and
15 expenses exceed any income from the property in question,
16 if the costs and expenditures have been approved by the
17 court appointing the receiver and a certified copy of the
18 order or approval is filed and posted by the certificate
19 holder with the county clerk. Only actual costs expended
20 may be posted on the tax judgment, sale, redemption and
21 forfeiture record.
22 (Source: P.A. 88-455; 89-57, eff. 6-30-95; 89-69, eff.
23 6-30-95; 89-626, eff. 8-9-96.)
24 Section 10. The Code of Civil Procedure is amended by
25 adding Section 12-144.5 and changing Section 12-145 as
26 follows:
27 (735 ILCS 5/12-144.5 new)
28 Sec. 12-144.5. Report of sale and confirmation of sale.
29 (a) When the premises mentioned in the certificate are
30 not redeemed in pursuance of law, the legal holder of the
31 certificate shall promptly make a report to the court that
32 issued the underlying judgment. The report shall include a
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1 copy of the certificate of sale; an affidavit, under oath,
2 containing a good faith appraisal of the fair market value of
3 the property; and a listing of all liens and mortgages
4 including the value thereof.
5 (b) Upon motion and notice in accordance with court
6 rules applicable to motions generally, including notice to
7 the judgment debtor, the court issuing the underlying
8 judgment shall conduct a hearing to confirm the sale. Unless
9 the court finds that (i) notice as required by law was not
10 given, (ii) the terms of the sale were unconscionable, (iii)
11 the sale was conducted fraudulently, or (iv) justice was
12 otherwise not done, the court shall then enter an order
13 confirming the sale. In making these findings, the court
14 shall take into account the purchase price at the sale in
15 relation to the fair market value of the property less the
16 value of any mortgages and liens.
17 (735 ILCS 5/12-145) (from Ch. 110, par. 12-145)
18 Sec. 12-145. Time of execution of deed. When the
19 premises mentioned in such certificate are not redeemed in
20 pursuance of law, and the court issuing the underlying
21 judgment has entered an order confirming the sale in
22 accordance with Section 12-144.5, the legal holder of the
23 certificate is entitled to a deed therefor at any time within
24 5 years from the expiration of the time of redemption. The
25 deed shall be executed by the sheriff or other officer who
26 made the sale, or by his or her successor in office, or by
27 some person specially appointed by the court for the purpose.
28 If the deed is not taken within the time limited by Part 1 of
29 Article XII of this Act, the certificate of purchase is void
30 unless the purchaser under the certificate of sale has gone
31 into possession of the premises under and in reliance on the
32 certificate of sale within the 5 year period. If, however,
33 the deed is wrongfully withheld by the officer whose duty it
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1 is to execute it, or if the execution of the deed is
2 restrained by injunction or order of a court, the time during
3 which the deed is so withheld or the execution thereof
4 restrained shall not be considered as any part of the 5 years
5 within which the holder is required to take a deed.
6 (Source: P.A. 83-707.)
7 Section 99. Effective date. This Section and the
8 changes to Sections 21-295 of the Property Tax Code take
9 effect upon becoming law.
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