HB2162 103RD GENERAL ASSEMBLY

LRB103 06062 HLH 51092 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2162

Introduced 2/7/2023, by Rep. Margaret Croke

SYNOPSIS AS INTRODUCED:

35 ILCS 200/22-80

Amends the Property Tax Code. Provides that a party who successfully contests the entry of an order directing the county clerk to issue a tax deed shall pay certain specified fees and costs to the tax deed grantee or the owner of the certificate of purchase. Provides that, in the case of a sale in error, interest accrues until the date of the order finding that the order directing the county clerk to issue a tax deed should be vacated (currently, until the date of payment). Effective immediately.

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 Section 22-80 as follows:

(35 ILCS 200/22-80)

Sec. 22-80. Order of court setting aside tax deed; payments to holder of deed.

(a) Any order of court vacating an order directing the county clerk to issue a tax deed based upon a finding that the property was not subject to taxation or special assessment, or that the taxes or special assessments had been paid prior to the sale of the property, or that the tax sale was otherwise void, shall declare the tax sale to be a sale in error pursuant to Section 21-310 of this Act. The order shall direct the county collector to refund to the tax deed grantee or his or her successors and assigns (or, if a tax deed has not yet issued, the holder of the certificate) the following amounts:

(1) all taxes and special assessments purchased, paid, or redeemed by the tax purchaser or his or her assignee, or by the tax deed grantee or his or her successors and assigns, whether before or after entry of the order for tax deed, with interest at the rate of 1% per month from the date each amount was paid until the date of the order finding that the order directing the county clerk to issue a tax deed should be vacated of payment pursuant to this Section;

(2) all costs paid and posted to the judgment record and not included in paragraph (1) of this subsection (a); and

(3) court reporter fees for the hearing on the application for tax deed and transcript thereof, cost of certification of tax deed order, cost of issuance of tax deed, and cost of recording of tax deed.

(b) Except in those cases described in subsection (a) of this Section, and unless the court on motion of the tax deed petitioner extends the redemption period to a date not later than 3 years from the date of sale, any order of court finding that an order directing the county clerk to issue a tax deed should be vacated shall direct the party who successfully contested the entry of the order to pay to the tax deed grantee or his or her successors and assigns (or, if a tax deed has not yet issued, the holder of the certificate) within 90 days after the date of the finding:

(1) the amount necessary to redeem the property from the sale as of the last day of the period of redemption, except that, if the sale is a scavenger sale pursuant to Section 21-260 of this Act, the redemption amount shall not include an amount equal to all delinquent taxes on such property which taxes were delinquent at the time of sale; and

(2) amounts in satisfaction of municipal liens paid by the tax purchaser or his or her assignee; , and the amounts specified in paragraphs (1) and (3) of subsection (a) of this Section, to the extent the amounts are not included in paragraph (1) of this subsection (b).

(3) court reporter fees for the hearing on the application for tax deed and fees for the transcript of that hearing;

(4) the cost of certification of the tax deed order;

(5) the costs of issuing the tax deed and recording the tax deed;

(6) all taxes and special assessments purchased, paid, or redeemed by the tax purchaser or his or her assignee, or by the tax deed grantee or his or her successors and assigns, whether before or after entry of the order for tax deed, and not included in the amount necessary to redeem the property from the sale as of the last day of the period of redemption, with interest at the rate of 1% per month from the date each amount was paid until the date of the order finding that the order directing the county clerk to issue a tax deed should be vacated; and

(5) interest, at the rate of 1% per month from the last day of the period of redemption until the date of the order finding that the order directing the county clerk to issue a tax deed should be vacated, on any subsequent taxes and special assessments included in the amount necessary to redeem the property from the sale as of the last day of the period of redemption.

If the payment is not made within the 90-day period, the petition to vacate the order directing the county clerk to issue a tax deed shall be denied with prejudice, and the order directing the county clerk to issue a tax deed shall remain in full force and effect. No final order vacating any order directing the county clerk to issue a tax deed shall be entered pursuant to this subsection (b) until the payment has been made.

(Source: P.A. 91-357, eff. 7-29-99.)

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