HB0799eng 104TH GENERAL ASSEMBLY

HB0799 Engrossed LRB104 04698 HLH 14725 b

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 21-90, 21-110, 21-115, 21-190, 21-205, 21-215, 21-225, 21-250, 21-350, 21-390, 22-5, 22-10, 22-40, and 22-65 and by adding Sections 1-4, 1-71, 1-72, 1-153, 21-191, 21-192, 21-251, 22-42, and 22-43 as follows:

(35 ILCS 200/1-4 new)

Sec. 1-4. Allowable costs; prohibited costs; maintenance.

(a) For purposes of this Code, and for any tax sale, redemption, judicial tax deed auction, tax deed judgment, or surplus proceeds determination arising from a tax certificate issued on or after the effective date of this amendatory Act, "allowable costs" means only the following amounts, to the extent actually incurred, actually paid, reasonable in amount, directly tied to the specific parcel, and supported by written documentation:

(1) delinquent taxes and special assessments lawfully due;

(2) statutory interest expressly authorized by this Code;

(3) court filing fees actually paid;

(4) service of process costs actually paid;

(5) publication costs actually paid;

(6) recording fees actually paid;

(7) municipal advancements actually paid under Section 22-35;

(8) selling officer fees expressly authorized by statute or court order and actually paid; and

(9) title search costs actually paid, only if expressly authorized elsewhere in this Code and only in the amount permitted by law.

(b) "Maintenance" means only work reasonably necessary to secure, preserve, and prevent waste or nuisance conditions at property held by a county after issuance and recording of a tax deed and before redemption or judicial tax deed auction, limited to:

(1) securing points of entry;

(2) removal of garbage, debris, or hazardous refuse;

(3) mowing grass and basic exterior upkeep necessary to prevent nuisance conditions;

(4) boarding or similar temporary protection measures;

(5) abatement of objectively unsafe or hazardous conditions required by applicable law; and

(6) actions strictly necessary to comply with applicable municipal health and safety requirements.

(c) "Maintenance" does not include:

(1) redevelopment;

(2) renovation;

(3) rehabilitation beyond temporary securing or hazard abatement;

(4) capital improvements;

(5) demolition, except where separately authorized by other law and not charged to the former owner or deducted from surplus proceeds;

(6) project management charges;

(7) consulting fees;

(8) internal labor allocation;

(9) overhead;

(10) general administrative expenses;

(11) insurance costs;

(12) financing costs;

(13) interest on county-incurred expenses;

(14) legal fees, except as expressly and specifically authorized elsewhere in this Code;

(15) staff time valuation;

(16) transportation costs, mileage, fleet use, or equipment depreciation;

(17) compliance monitoring costs not directly tied to a specific and documented health or safety condition; or

(18) any cost not expressly listed in subsection (b).

(d) "Administrative costs" means only ministerial third party costs expressly authorized by statute and actually paid to a non-county third party in connection with the specific parcel at issue. "Administrative costs" does not include county overhead, employee compensation, fringe benefits, pension costs, office expenses, information technology expenses, general operating expenses, treasury expenses, legal department expenses, or any pro rata allocation of county operations.

(e) "Overhead" means all internal governmental, contractor, portfolio, or enterprise expenses not directly and exclusively incurred for the specific parcel and expressly allowed by statute. Overhead is prohibited from inclusion in any redemption amount, tax deed judgment amount, minimum bid, or deduction from surplus proceeds.

(f) Except as expressly provided in this Code, no fee, cost, charge, surcharge, assessment, contribution, reimbursement, or expense may be included in:

(1) the redemption amount;

(2) the tax deed judgment amount;

(3) the minimum bid at judicial tax deed auction; or

(4) any deduction from surplus proceeds.

(g) The following are expressly prohibited from inclusion in the redemption amount, tax deed judgment amount, minimum bid, or any deduction from surplus proceeds:

(1) maintenance costs, except as provided in subsection (j) in the event of redemption;

(2) county administrative costs;

(3) county overhead;

(4) fund capitalization charges;

(5) indemnity fund charges;

(6) surplus account charges;

(7) automation fund charges;

(8) registry fees;

(9) bidder registration fees;

(10) assignment fees;

(11) portfolio management charges;

(12) anticipated future expenses;

(13) estimated expenses not yet paid;

(14) markups;

(15) internal transfer pricing;

(16) profit components;

(17) contingency percentages;

(18) carrying costs;

(19) opportunity costs;

(20) cost of capital;

(21) investment loss or delay claims;

(22) staff salary allocations;

(23) attorney fee schedules, standard fee schedules, or flat fee proxies not actually incurred and expressly authorized by statute; and

(24) any amount the primary purpose of which is to generate revenue, capitalize a fund, subsidize operations, or shift general governmental costs to the property owner.

(h) No county, certificate holder, assignee, selling officer, or other party may characterize a prohibited cost as an allowable cost by relabeling it as preservation, servicing, administration, compliance, stabilization, case handling, asset management, collection support, or any substantially similar term.

(i) If there is a dispute concerning whether a charge is allowable under this Section, the burden shall be on the party seeking inclusion of the charge to prove by written documentation that:

(1) the charge is expressly permitted by statute;

(2) the charge was actually incurred and actually paid;

(3) the charge was reasonable in amount;

(4) the charge was directly tied to the specific parcel; and

(5) the charge is not prohibited by this Section.

Any ambiguity shall be resolved against inclusion of the charge.

(j) If the owner redeems a property after the county has obtained and recorded a tax deed under Section 21-191, the county may recover only actual documented out-of-pocket maintenance costs incurred during the county's period of title, and may recover those costs only if those costs are expressly permitted by this Code. Those maintenance costs:

(1) shall be separately itemized;

(2) shall be limited to actual documented out of pocket amounts paid to third parties or actual material costs paid by the county;

(3) shall not include internal labor, staff time, fringe benefits, pension costs, supervision, overhead, administrative allocation, financing charges, profit, markup, or any indirect cost; and

(4) shall be subject to court review for reasonableness upon objection by the redeeming owner.

(k) If the owner does not redeem the property, no maintenance cost, administrative cost, overhead cost, or other county cost shall be charged to the former owner and no such cost shall be included in the tax deed judgment amount, minimum bid, or deducted from any surplus proceeds otherwise payable to the former owner or other lawful claimant.

(l) Any contractual provision, local practice, administrative policy, court filing, or bid term inconsistent with this Section is void and unenforceable to the extent of the inconsistency.

(35 ILCS 200/1-71 new)

Sec. 1-71. Homestead exemption property. "Homestead exemption property" means residential property located in a county with 3,000,000 or more inhabitants for which a homestead exemption under this Code based upon owner occupancy has been allowed for the taxable year in which the annual tax sale is held. "Homestead exemption property" does not include mixed use property, commercial property, or industrial property.

(35 ILCS 200/1-72 new)

Sec. 1-72. Interested party. "Interested party" means any party having an interest in the property as revealed by a title examination of public records. "Interested party" does not include the holder of the benefit or burden of any easement whose interest is properly recorded and remains unaffected by property tax enforcement proceedings.

(35 ILCS 200/1-153 new)

Sec. 1-153. Tax sale and judicial tax deed auction.

(a) "Tax sale" means the transfer of a property tax lien or tax certificate in accordance with Section 21-90, 21-145, 21-205, 21-225, 21-250, or 21-260 of this Code.

(b) "Judicial tax deed auction" means the transfer of property by a public auction conducted in accordance with Sections 22-40 and 22-42 of this Code for the purpose of determining fair market value before final disposition by tax deed and preserving any surplus proceeds for lawful claimants.

(35 ILCS 200/21-90)

Sec. 21-90. Purchase and sale by county; distribution of proceeds.

(a) When any property is offered for sale under any of the provisions of this Code, the county board of the county in which the property is located, in its discretion, may bid, or, in the case of forfeited property, may apply to purchase it or otherwise acquire the tax lien or certificate in the name of the county as trustee for all taxing districts having an interest in the property's taxes or special assessments for the nonpayment of which the property is sold. The presiding officer of the county board, with the advice and consent of the board, may appoint on its behalf some officer, person, or entity to attend such sales, bid on tax liens or certificates, and act on behalf of the county when exercising its authority under this Section. The county shall apply on the bid or purchase the unpaid taxes and special assessments due upon the property. No cash need be paid.

(b) The county, as trustee for all taxing districts having an interest in the property's taxes or special assessments, shall be the designated holder of all tax liens or certificates that are forfeited to the State or county or otherwise acquired by the county pursuant to subsection (a) of this Section or Sections 21-190 through 21-255 of this Code. No cash need be paid for any the forfeited tax lien or certificate acquired by the county pursuant to subsection (a) of this Section or Sections 21-190 through 21-255 of this Code.

(c) For any tax lien or certificate acquired under subsection (a) or (b) of this Section, or for any property otherwise purchased or acquired by the county pursuant to Sections 21-190 through 21-255 of this Code, the county may take steps necessary to acquire or sell title to the property and may manage and operate the property, including, but not limited to, mowing of grass, removal of nuisance greenery, removal of garbage, waste, debris, or other materials, or the demolition, repair, or remediation of unsafe structures. When a county, or other taxing district within the county, is a petitioner for a tax deed, no filing fee shall be required. When a county or other taxing district within the county is the petitioner for a tax deed, one petition may be filed including all parcels that are tax delinquent within the county or taxing district, and any publication made under Section 22-20 of this Code may combine all such parcels within a single notice. The notice may include the property street address as listed on the most recent available tax bills, if available, and shall list the Property Index Number of the parcels for informational purposes. The county, as tax creditor and as trustee for other tax creditors, or other taxing district within the county, shall not be required to allege and prove that all taxes and special assessments which become due and payable after the sale or forfeiture to the county have been paid nor shall the county be required to pay the subsequently accruing taxes or special assessments at any time. The county board or its designee may prohibit the county collector from including the property in the tax sale of one or more subsequent years. The lien of taxes and special assessments which become due and payable after a tax sale to a county shall merge in the fee title of the county, or other taxing district within the county, on the issuance of a deed.

The county may sell any property acquired with authority provided in this Section, or assign any tax certificate to any party, including, but not limited to, taxing districts, municipalities, land banks created pursuant to Illinois law, or nonprofit non-profit developers focused on constructing affordable housing.

The assigned tax certificate shall be void with no further rights given to the assignee, including no right to refund or reimbursement, if a tax deed resulting from a judicial tax deed auction has not been recorded within 4 years after the date of the assignment unless a court extends the assignment period as provided in this Section. Upon a motion by the assignee, a court may toll the 4-year deadline for a specified period of time if the court finds the assignee is prevented from obtaining or recording a deed by injunction or order of any court, by the refusal or inability of any court to act upon the application for a tax deed, by a municipality's refusal to issue necessary transfer stamps or approvals for recording, or by the refusal of the clerk to execute the deed. If an assigned tax certificate is void under this Section, it shall be forfeited to the county and held as a valid certificate of sale in the county's name pursuant to this Section 21-90. The proceeds of any sale or assignment under this Section, less all costs permitted by this Code of the county incurred in the acquisition, operation, maintenance, and less any surplus payments sale of the property or assignment of the tax certificate, including all costs associated with county staff and overhead used to owners perform the duties of the trustee set forth in this Section, shall be distributed to the taxing districts in proportion to their respective interests therein.

Under Sections 21-110, 21-115, 21-120, and 21-190, a county may bid or purchase only in the absence of other bidders except as expressly authorized by Section 21-191.

(d) The county, as trustee, may elect to acquire or sell tax delinquent property under this Section and under Sections 22-10, 22-40, and 22-42 of this Code only as expressly authorized by this Code.

(e) Nothing in this Section authorizes the inclusion of prohibited costs described in Section 1-4 in the redemption amount, tax deed judgment amount, minimum bid, or deduction from surplus proceeds.

(Source: P.A. 102-363, eff. 1-1-22; 103-555, eff. 1-1-24.)

(35 ILCS 200/21-110)

Sec. 21-110. Published notice of annual application for judgment and sale; delinquent taxes. At any time after all taxes have become delinquent in any year, the Collector shall publish an advertisement, giving notice of the intended application for judgment and tax sale of the delinquent properties. The advertisement may include the street address on file with the county collector, if available, and shall include the PIN number of each delinquent property. If the county has provided notice to the Collector of its intent to acquire property offered at an annual tax sale in the manner described in Section 21-191, the advertisement shall indicate which properties the county intends to acquire next to the PIN number and address, if any, listed in the advertisement. Except as provided below, the advertisement shall be in a newspaper published in the township or road district in which the properties are located. If there is no newspaper published in the township or road district, then the notice shall be published in some newspaper in the same county as the township or road district, to be selected by the county collector. When the property is in a city with more than 1,000,000 inhabitants, the advertisement may be in any newspaper published in the same county. When the property is in an incorporated town which has superseded a civil township, the advertisement shall be in a newspaper published in the incorporated town or if there is no such newspaper, then in a newspaper published in the county.

The provisions of this Section relating to the time when the Collector shall advertise intended application for judgment for sale are subject to modification by the governing authority of a county in accordance with the provisions of subsection (c) of Section 21-40.

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

(35 ILCS 200/21-115)

Sec. 21-115. Times of publication of notice. The advertisement shall be published once at least 10 days before the day on which judgment is to be applied for, and shall contain a list of the delinquent properties upon which the taxes or any part thereof remain due and unpaid, the names of owners, if known, the total amount due, and the year or years for which they are due, and whether the county intends to purchase the property in accordance with Section 21-191 if a judgment is entered against the property. In counties of less than 3,000,000 inhabitants, advertisement shall include notice of the registration requirement for persons bidding at the sale. Properties upon which taxes have been paid in full under protest shall not be included in the list.

The collector shall give notice that he or she will apply to the circuit court on a specified day for judgment against the properties for the taxes, and costs, and for an order to sell the properties for the satisfaction of the amount due.

The collector shall also give notice of a date within the next 5 business days after the date of application on which all the properties for the sale of which an order is made will either be sold to the county in accordance with Section 21-191 or be exposed to public tax sale at a location within the county designated by the county collector, for the amount of taxes, and cost due. The advertisement published according to the provisions of this Section shall be deemed to be sufficient notice of the intended application for judgment and of the sale of properties under the order of the court. A county with fewer than 3,000,000 inhabitants may, by joint agreement, combine its tax sale with the tax sale of one or more other contiguous counties; such a joint tax sale shall be held at a location in one of the participating counties. Notwithstanding the provisions of this Section and Section 21-110, in the 10 years following the completion of a general reassessment of property in any county with 3,000,000 or more inhabitants, made under an order of the Department, the publication shall be made not sooner than 10 days nor more than 90 days after the date when all unpaid taxes on property have become delinquent.

(Source: P.A. 101-379, eff. 1-1-20.)

(35 ILCS 200/21-190)

Sec. 21-190. Entry of judgment for tax sale.

(a) If judgment is rendered against any property for any tax or, in counties with 3,000,000 or more inhabitants, for any tax or special assessment, the county collector shall, after publishing a notice for sale in compliance with the requirements of Sections 21-110, and 21-115, or 21-120, proceed to offer the property for sale pursuant to the judgment. However, in the case of an appeal from the judgment, if the party, when filing notice of appeal deposits with the county collector the amount of the judgment and costs, the collector shall not sell the property until the appeal is disposed of.

(b) In counties with 3,000,000 or more inhabitants, any property that is identified on the list published under Section 21-191 and that is lawfully acquired by the county under that Section shall not be exposed to private bidding at that annual sale.

(c) All properties not acquired under subsection (b) shall be offered to the private market in the manner otherwise provided by this Code.

(Source: P.A. 79-451; 88-455.)

(35 ILCS 200/21-191 new)

Sec. 21-191. Pilot program for acquisition of tax certificates in counties with 3,000,000 or more inhabitants.

(a) In a county with 3,000,000 or more inhabitants, the county board may elect, by ordinance or resolution, to participate in a pilot program under this Section.

(b) A county that elects to participate in the pilot program may acquire, as trustee under Section 21-90, tax certificates for up to 200 properties offered at any of its annual tax sales, but in no event may the number of properties acquired under this Section exceed 50% of the total number of properties offered at that annual tax sale.

(c) Only homestead exemption properties located within the electing county may be included in the pilot program under this Section. No delinquency amount, hardship determination, geographic priority, or other further screening criterion shall be required.

(d) Not less than 30 days prior to the annual tax sale, the county shall publish on its website and deliver to the county clerk a list of the properties proposed for acquisition under this Section. The list shall identify each parcel by permanent index number and commonly known property address, if available, and shall state that the parcel is proposed for acquisition under this Section.

(e) If a county acquires a tax certificate under this Section and thereafter obtains an order directing issuance of a tax deed, the county shall record the tax deed within 30 days after entry of the order directing issuance of tax deed.

(f) If a county acquires a tax certificate under this Section and thereafter records a tax deed for the property, the owner shall have an automatic statutory right to redeem the property for a period of 365 days after recording of the tax deed.

(g) If the property is not redeemed within the 365-day period described in subsection (f), the county shall, within 30 days after expiration of that 365-day period, cause the property to be offered at judicial tax deed auction in accordance with Sections 22-40 and 22-42.

(h) All records, lists, reports, data compilations, and supporting materials concerning the pilot program established under this Section are public records subject to the Freedom of Information Act, except to the extent otherwise exempt under that Act.

(i) If a county acquires a tax certificate under this Section and thereafter obtains a tax deed for the property, the county shall be responsible, during the period the county holds title prior to redemption or judicial tax deed auction, for reasonable maintenance necessary to secure, preserve, and prevent waste or nuisance conditions at the property, as defined in Section 1-4. In procuring goods or services under this subsection, the county shall comply with all otherwise applicable county ordinances, policies, and goals governing contracting, procurement, and participation by minority-owned, women-owned, veteran-owned, and other protected or preferred business enterprises. The county shall not recover any such maintenance cost from the former owner except in the event of redemption as expressly provided in subsection (j) of Section 1-4, and no such cost shall be included in the tax deed judgment amount, minimum bid, or deducted from any surplus proceeds.

(j) If a county records a tax deed for property under this Section, the county shall, within 14 days after recording the deed:

(1) provide written notice by certified mail to the municipality in which the property is located, or to the county if the property is located in an unincorporated area, stating (i) that the county has acquired title, (ii) the property address, if available, (iii) the permanent index number, and (iv) the county office or department responsible for the property; provided, however, that notice may be provided by electronic mail only if the municipality has previously notified the county in writing, through the chief legal officer of the municipality or an attorney authorized to bind the municipality, that the municipality will accept the notice by electronic mail and has designated a specific electronic mail address for receipt of such notices; and

(2) if the property is vacant or apparently unoccupied, post a notice on the property, in a form reasonably visible from the exterior, stating that the property is owned by the county pursuant to tax deed and providing contact information for the county office or department responsible for maintenance, redemption inquiries, and the status of the property.

(k) Failure to maintain a posted notice due to removal, vandalism, weather, or conditions beyond the county's control shall not impair title, but the county shall make reasonable efforts to repost the notice upon learning of its removal.

(l) This Section is repealed on July 1, 2030.

(35 ILCS 200/21-192 new)

Sec. 21-192. Pilot program report.

(a) A county participating in the pilot program under Section 21-191 shall submit an annual report to the General Assembly and the Department of Revenue no later than the third Wednesday of February of each year during the pilot period.

(b) The report shall include, at a minimum:

(1) the number of properties acquired under the pilot program;

(2) the number of properties offered to the private market at the annual tax sale;

(3) the number of pilot properties redeemed;

(4) the number of pilot properties for which tax deeds were issued;

(5) the number of pilot properties offered at judicial tax deed auction;

(6) the amount of surplus proceeds returned to owners or other lawful claimants;

(7) the amount remitted to taxing districts;

(8) the administrative costs associated with the pilot program; and

(9) any additional information the county elects to provide.

(c) All data and supporting materials underlying the report are public records subject to the Freedom of Information Act, except to the extent otherwise exempt under that Act.

(35 ILCS 200/21-205)

Sec. 21-205. Tax sale procedures.

(a) The collector, in person or by deputy, shall attend, on the day and in the place specified in the notice for the sale of property for taxes, and shall, between 9:00 a.m. and 4:00 p.m., or later at the collector's discretion, proceed to offer for sale, separately and in consecutive order, all property in the list on which the taxes, special assessments, interest or costs have not been paid. However, in any county with 3,000,000 or more inhabitants, the offer for sale shall be made between 8:00 a.m. and 8:00 p.m. The collector's office shall be kept open during all hours in which the sale is in progress. The tax sale shall be continued from day to day, until all property in the delinquent list has been offered for sale. However, any city, village or incorporated town interested in the collection of any tax or special assessment, may, in default of bidders, withdraw from collection the special assessment levied against any property by the corporate authorities of the city, village or incorporated town. In case of a withdrawal, there shall be no sale of that property on account of the delinquent special assessment thereon.

(b) Until January 1, 2013, in every tax sale of property pursuant to the provisions of this Code, the collector may employ any automated means that the collector deems appropriate. Beginning on January 1, 2013, either (i) the collector shall employ an automated bidding system that is programmed to accept the lowest redemption price bid by an eligible tax purchaser, subject to the penalty percentage limitation set forth in Section 21-215, or (ii) all tax sales shall be digitally recorded with video and audio. All bidders are required to personally attend the tax sale and, if automated means are used, all hardware and software used with respect to those automated means must be certified by the Department and re-certified by the Department every 5 years. If the tax sales are digitally recorded and no automated bidding system is used, then the recordings shall be maintained by the collector for a period of at least 3 years from the date of the tax sale. The changes made by this amendatory Act of the 94th General Assembly are declarative of existing law.

(b-5) For any annual tax sale conducted on or after the effective date of this amendatory Act of the 102nd General Assembly, each county collector in a county with 275,000 or more inhabitants shall adopt a single bidder rule sufficient to prohibit a tax purchaser from registering more than one related bidding entity at the tax sale. The corporate authorities in any county with less than 275,000 inhabitants may, by ordinance, allow the county collector of that county to adopt such a single bidder rule. In any county that has adopted a single bidder rule under this subsection (b-5), the county treasurer shall include a representation and warranty form in each registration package attesting to compliance with the single bidder rule, except that the county may, by ordinance, opt out of this representation and warranty form requirement. A single bidder rule under this subsection may be in the following form:

(1) A registered tax buying entity (principal) may only have one registered buyer at the tax sale and may not have a related bidding entity directly or indirectly register as a buyer or participate in the tax sale. A registered tax buying entity may not engage in any multiple bidding strategy for the purpose of having more than one related bidding entity submit bids at the tax sale.

(2) A related bidding entity is defined as any individual, corporation, partnership, joint venture, limited liability company, business organization, or other entity that has a shareholder, partner, principal, officer, general partner, or other person or entity having (i) an ownership interest in a bidding entity in common with any other registered participant in the tax sale or (ii) a common guarantor in connection with a source of financing with any other registered participant in the tax sale. The determination of whether registered entities are related so as to prohibit those entities from submitting duplicate bids in violation of the single bidder rule is at the sole and exclusive discretion of the county treasurer or his or her designated representatives.

(c) County collectors may, when applicable, eject tax bidders who disrupt the tax sale or use illegal bid practices.

(d) No bidder, principal, affiliate, nominee, or related entity shall directly or indirectly engage in collusive bidding, common-control bidding, nominee bidding, bid rotation, or any other scheme designed to suppress competition at any tax sale under this Code. A violation of this subsection may result in disqualification, cancellation of bids, suspension from future sales, civil penalties, and referral to the Attorney General or other appropriate enforcement authority.

(e) Any property to be acquired by a county in the manner described in Section 21-191 shall not be offered for sale in the manner detailed in subsections (a) through (d) of this Section. Instead, all such property shall be sold to the county for the total amount due on the day of the scheduled tax sale in whatever manner is deemed most expedient and efficient by the collector's office. For any properties acquired by the county as described in Section 21-191 that are subsequently sold at a judicial tax deed auction in accordance with this Code, any amounts generated in cash from such auction shall be distributed in the manner described in this Code.

(Source: P.A. 102-519, eff. 8-20-21.)

(35 ILCS 200/21-215)

Sec. 21-215. Penalty bids.

(a) Subject to subsection (b) of this Section, the The person at the sale offering to pay the amount due on each property for the least penalty percentage shall be the purchaser of that property. No bid shall be accepted for a penalty exceeding 9% of the amount of the tax or special assessment on property.

(b) If the county offers to purchase property for the amount due in accordance with Section 21-191, the county shall be the purchaser of the property notwithstanding any other offer. Subject to a payment plan implemented by the county clerk in accordance with subsection (d) of Section 21-385, the penalty for any property purchased by the county in this manner shall be 9% of the amount of the tax or special assessment on property.

(Source: P.A. 102-363, eff. 1-1-22.)

(35 ILCS 200/21-225)

Sec. 21-225. Forfeited tax liens and certificates. Every tax lien or certificate for property offered at public tax sale, and not sold for want of bidders, unless it is released from tax sale by the withdrawal from collection of a special assessment levied thereon, shall be forfeited to the county, as trustee for the taxing districts, and managed pursuant to Section 21-90. Tax certificates are also forfeited to the county in those circumstances described in subsection (d) of Section 21-310 and subsection (f) of Section 22-40 of this Code.

(Source: P.A. 103-555, eff. 1-1-24.)

(35 ILCS 200/21-250)

Sec. 21-250. Certificate of purchase.

(a) The county clerk shall make out and deliver to the purchaser of any property sold under Section 21-205, or to the county if the lien is acquired pursuant to Section 21-191 or Section 21-90 and a certificate is requested by the county or its agent, a tax certificate countersigned by the collector, describing the property sold, the date of sale, the amount of taxes, special assessments, interest, and cost for which they were sold, and stating that payment of the sale price has been made.

(b) A certificate of purchase shall not be assigned unless the assignment is registered in accordance with Section 21-251. and cost for which they were sold and that payment of the sale price has been made. If any person becomes the purchaser of more than one property owned by one party or person, the purchaser may have the whole or one or more of them included in one certificate, but separate certificates shall be issued in all other cases. A tax certificate shall be assignable by endorsement. An assignment shall vest in the assignee or his or her legal representatives, all the right and title of the original purchaser.

If the tax certificate is lost or destroyed, the county clerk shall issue a duplicate certificate upon written request and a sworn affidavit by the tax sale purchaser, or his or her assignee, that the tax certificate is lost or destroyed. The county clerk shall cause a notation to be made in the tax sale and judgment book that a duplicate certificate has been issued, and redemption payments shall be made only to the holder of the duplicate certificate.

(Source: P.A. 103-555, eff. 1-1-24.)

(35 ILCS 200/21-251 new)

Sec. 21-251. Registry of owners and assignees of certificates of purchase.

(a) The county clerk shall create and maintain a registry recording the names, business addresses, telephone numbers, and beneficial ownership information of owners and assignees of certificates of purchase. The registry may be maintained in paper or electronic form and shall be accessible to the public.

(b) Every assignment of a certificate of purchase shall be registered with the county clerk.

(c) No assignee shall have any right to redemption proceeds, refund rights, petition rights, judicial tax deed auction rights, or tax deed rights unless the assignment is duly registered.

(d) Each assignee shall disclose the identity of all persons or entities holding, directly or indirectly, a beneficial ownership interest of 5% or more in the assignee or in the certificate.

(e) Any notice required in proceedings relating to a tax sale may be sent to the most recent registered owner listed in the registry.

(f) The county clerk may adopt reasonable forms and procedures to administer this Section.

(35 ILCS 200/21-350)

Sec. 21-350. Period of redemption. Property sold at a tax sale under this Code may be redeemed at any time before the expiration of (i) 2 years and 6 months from the date of sale in counties with less than 3,000,000 inhabitants and (ii) 3 2.5 years from the date of sale in counties with 3,000,000 or more inhabitants, except that, in all counties:

(a) If on the date of sale the property is vacant non-farm property or property containing an improvement consisting of a structure or structures with 7 or more residential units or that is commercial or industrial property, it may be redeemed at any time before the expiration of one 1 year from the date of the tax sale.

(a-5) If, on the date of the tax sale, the property sold is occupied residential property containing a structure or structures with 6 or fewer residential units, the property may be redeemed after 3 years but before the court orders the property sold at a judicial tax deed auction.

(b) (Blank).

(c) If the period of redemption has been extended by the certificate holder as provided in Section 21-385 or Section 22-5, the property may be redeemed on or before the extended redemption date. The changes made to this Section by this amendatory Act of the 103rd General Assembly apply to matters concerning tax certificates issued on or after January 1, 2024.

(d) If a county acquires a tax certificate under Section 21-191 and thereafter records a tax deed for the property, the owner may redeem during the 365-day period described in subsection (f) of Section 21-191.

(Source: P.A. 103-555, eff. 1-1-24.)

(35 ILCS 200/21-390)

Sec. 21-390. Effect of receipt of redemption money, forfeiture, withdrawal or return of certificate. The receipt of the redemption money on any property by any purchaser or assignee, on account of any forfeiture or withdrawal, or the return of the certificate of purchase, withdrawal, or forfeiture or forfeiture for cancellation, shall operate as a release of the claim to the property under, or by virtue of, the purchase, withdrawal or forfeiture. However, when a certificate of purchase has been recorded in the office of the county recorder by any city, incorporated town or village with 1,000,000 or more inhabitants in which the property is situated, the recording of a certificate by the County Clerk, reciting the cancellation of the certificate of purchase on the tax judgment, sale, redemption and forfeiture record, shall operate as a release of the lien of the city, incorporated town, or village under the certificate of purchase.

The county clerk shall pay redemption proceeds to the registered certificate holder within 60 days after receipt of the collected redemption funds and the surrender or electronic cancellation of the certificate. Any disbursement not made within that period shall accrue interest at the statutory rate until paid.

(Source: P.A. 83-358; 88-455.)

(35 ILCS 200/22-5)

Sec. 22-5. Notice of sale and redemption rights. In order to be entitled to an order for a judicial tax deed auction and a tax deed, within 4 months and 15 days after any tax sale held under this Code, the purchaser or his or her assignee, and the county for all tax liens or forfeited certificates it acquires pursuant to Section 21-90 or Section 21-191 of this Code from the annual sale, 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 in the following form completely filled in:

TAKE NOTICE

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

Date Premises Sold or Forfeited .....................

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 AT A TAX SALE FOR

DELINQUENT TAXES Property Address (as identified on the most recent tax bill, if available) .... Legal Description or Property Index No. .......... .......... ..............................

This notice is to advise you that, if you do not redeem by paying your tax debt before the deadline, a petition may be filed in court for a judicial tax deed auction and for a tax deed which will transfer title and the right to possession of the above-referenced property. If you are a homeowner, this may eventually result in eviction from your home ("Property") if redemption is not made on or before the redemption deadline.

Your right to redeem will expire on .....................

To determine the redemption deadline and the total amount you must pay to redeem the sold taxes, you must immediately contact the County Clerk at the address, phone number, or email address below. Check with the County Clerk for the exact amount you owe before redeeming. Payment must be made by certified check, cashier's check, money order, or in cash to the County Clerk.

YOU ARE URGED TO REDEEM IMMEDIATELY TO

PREVENT LOSS OF PROPERTY AND ADDITIONAL COSTS

The longer you wait, the more expensive it will be to redeem and prevent the loss of your property. Interest will continue to accrue on the total amount owed until the property is redeemed, and you may owe additional attorney's or filing fees if the certificate holder chooses to pursue an order for a judicial tax deed auction to compel the sale or transfer of the deed to the property.

Property sold under the Property Tax Code may be redeemed by any owner or person holding an interest in the Property at any time before the following deadlines (based on property classification as of the Date of Sale):

You must redeem your taxes within one year of the Date of Sale for the following classifications:

(1) vacant non-farm property;

(2) property containing an improvement consisting of a structure or structures with 7 or more residential units; and

(3) commercial or industrial property.

You must redeem your taxes within 2 1/2 years and 6 months of the Date of Sale for the following classifications:

(1) all residential property with less than 6 units; and

(2) all other property not otherwise subject to a longer covered by the 1-year redemption period under Illinois law outlined above.

In counties with 3,000,000 or more inhabitants, occupied residential property containing a structure or structures with 6 or fewer residential units may be redeemed within 3 years of the Date of Sale and before the court orders the property sold at judicial tax deed auction.

If the property is not redeemed and is later sold at judicial tax deed auction, the owner may be entitled to any surplus proceeds remaining after payment of the lawful amount due and allowable costs.

Redemption deadlines may have been extended by the certificate holder or pursuant to Illinois law. To confirm the redemption deadline and amount needed to redeem, you must contact the County Clerk at the address, telephone number, or email address below. 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 address, telephone number, and email address for the County Clerk is as follows: ADDRESS:............................ TELEPHONE AND/OR EMAIL ADDRESS:..........................

For further information about the redemption deadline, redemption amount, or payment process, please contact the County Clerk.

Housing Counselor Information: If you would like housing counseling or assistance, you can contact the U.S. Department of Housing and Urban Development for a list of homeownership counselors or counseling organizations in your area.

In counties with 3,000,000 or more inhabitants, the redemption notice shall contain a provision in Spanish, Polish, and Mandarin Chinese stating that the redemption notice affects important legal rights and should be translated immediately.

Within 10 days after receipt of said notice, the county clerk shall mail to the addresses supplied by the purchaser or assignee, by registered or certified 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. With the exception of a county or taxing district acquiring certificates pursuant to Section 21-90 or Section 21-191 and 21-260, all purchasers or assignees 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.

All With the exception of forfeited tax liens or certificates held by the county pursuant to Section 21-90, all redemption periods shall begin on the date of the tax sale. For forfeited tax liens or certificates held by the county pursuant to Section 21-90, the county may cure any defect in a notice, or failure to send a notice as required by this Section, by delivering 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. The redemption period begins on the date the county delivered the corrected notice to the clerk, if such extension is otherwise permitted by law.

The changes to this Section made by this amendatory Act of the 97th General Assembly apply only to tax sales that occur on or after the effective date of this amendatory Act of the 97th General Assembly.

The changes made to this Section by this amendatory Act of the 103rd General Assembly apply to matters concerning tax certificates issued on or after the effective date of this amendatory Act of the 103rd General Assembly.

(Source: P.A. 102-815, eff. 5-13-22; 103-555, eff. 1-1-24.)

(35 ILCS 200/22-10)

Sec. 22-10. Notice of expiration of period of redemption. A purchaser or assignee shall not be entitled to request an order for a judicial tax deed auction and a tax deed to the property sold at an annual tax sale 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 as provided below and the date of expiration of the period of redemption to the owners, occupants, and interested parties and parties interested in the property, including any mortgagee of record, as well as the municipality in which the subject property lies, or the county if the property lies outside municipal corporate boundaries as provided below. For counties or taxing districts holding certificates pursuant to Section 21-90 or Section 21-191, the date of expiration of the period of redemption shall be designated by the county or taxing district in its petition for tax deed and identified in the notice below, which shall be filed with the county clerk.

The Notice to be given to the parties shall be in at least 10-point type in the following form completely filled in: TAX DEED NO. .................... FILED ....................

TAKE NOTICE

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

Date Premises Sold or Forfeited .....................

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

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

Sold for Special Assessment of (Municipality)

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

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

THIS PROPERTY HAS BEEN SOLD AT A TAX SALE FOR

DELINQUENT TAXES Property Address (as identified on the most recent tax bill, if available) .... Legal Description or Property Index No. .......... .......... ..............................

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

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 in the Circuit Court seeking an order for judicial tax deed auction and for a tax deed which will transfer title and the right to possession of this property if redemption is not made on or before .......................................

If you are a homeowner, this may eventually result in eviction from your home.

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 may will already have expired at that time unless Illinois law provides an additional redemption period. You may file a response to the petition or attend the hearing and present your case to the court. However, if you do not redeem at or before the hearing, and if the court finds that the petitioner has complied with all notice and other proper steps required to seek an order for judicial tax deed auction, the court may enter an order that your right to redeem has expired, all other interested parties have been provided proper notice and their interests have been resolved or extinguished, and the deed to the property is to be offered for sale at a public auction.

If you are the current owner of the property, you may be entitled to receive any surplus from the judicial tax deed auction after the delinquent taxes and allowable costs are paid. If there is a surplus, you will receive notice about how to claim the funds.

If the property is subject to Section 21-191 of the Property Tax Code and the county thereafter records a tax deed, you shall have an automatic statutory right to redeem the property for a period of 365 days after recording of the tax deed.

YOU ARE URGED TO REDEEM IMMEDIATELY

TO PREVENT LOSS OF PROPERTY AND ADDITIONAL COSTS

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.

For further information contact the County Clerk ADDRESS:.................... TELEPHONE AND/OR EMAIL ADDRESS:..................

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

Purchaser or Assignee.

Dated (insert date).

Housing Counselor Information: If you would like housing counseling or assistance, you can contact the U.S. Department of Housing and Urban Development for a list of homeownership counselors or counseling organizations in your area.

In counties with 3,000,000 or more inhabitants, the notice shall contain a provision in Spanish, Polish, and Mandarin Chinese stating that the notice affects important legal rights and should be translated immediately. 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 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).

The changes to this Section made by Public Act 102-1003 apply to matters in which a petition for tax deed is filed on or after May 27, 2022 (the effective date of Public Act 102-1003). Failure of any party or any public official to comply with the changes made to this Section by Public Act 102-528 does not invalidate any tax deed issued prior to May 27, 2022 (the effective date of Public Act 102-1003).

The changes made to this Section by this amendatory Act of the 103rd General Assembly apply to matters concerning tax certificates issued on or after the effective date of this amendatory Act of the 103rd General Assembly.

(Source: P.A. 102-528, eff. 1-1-22; 102-813, eff. 5-13-22; 102-1003, eff. 5-27-22; 103-154, eff. 6-30-23; 103-555, eff. 1-1-24.)

(35 ILCS 200/22-40)

Sec. 22-40. Issuance of order authorizing judicial tax deed auction, confirmation and order for tax deed; possession.

(a) To obtain an order authorizing a judicial tax deed auction and for issuance of tax deed, the petitioner must provide sufficient evidence that:

(1) the redemption period has expired and the property has not been redeemed;

(2) all taxes and special assessments which became due and payable subsequent to the sale have been paid, unless the county or its agent, as trustee pursuant to Section 21-90 or Section 21-191, is the petitioner;

(3) all forfeitures and sales which occur subsequent to the sale are paid or redeemed, unless the county or its agent, as trustee pursuant to Section 21-90 or Section 21-191, is the petitioner;

(4) the notices required by law have been given, and all advancements of public funds under the police power made by a county, city, village, or town under Section 22-35 have been paid; and

(5) the petitioner has complied with all the provisions of law entitling him or her to a deed.

Upon receipt of sufficient evidence of the requirements under this subsection (a), the court shall find that the petitioner complied with those requirements and shall enter an order authorizing a judicial tax deed auction or an order authorizing issuance of a tax deed to a county trustee pursuant to Section 21-90 or Section 21-191, subject to the requirements of this Section, directing the county clerk, on the production of the tax certificate and a certified copy of the order, to issue to the purchaser or its assignee a tax deed. The court shall insist on strict compliance with Sections Section 22-10 through 22-25. Prior to the entry of an order under this Section directing the issuance of a tax deed, the petitioner shall furnish the court with a report of proceedings of the evidence received on the application for tax deed and the report of proceedings shall be filed and made a part of the court record. The petitioner shall also furnish to the court a statement of redemption from the county clerk showing the total taxes, penalties, and costs that were required to be paid to redeem the tax sale as specified in the notice required under Section 22-10. The petitioner for tax deed must file a statement of, if applicable, (i) all taxes it has paid or redeemed for the property, (ii) the costs paid for court reporter and transcript services in counties of 3,000,000 or more inhabitants, or, in counties with less than 3,000,000 inhabitants, a submission of a report of proceedings to the court, (iii) the fees paid to the clerk for the estimate of redemption, (iv) all payments made for municipal advancements required by Section 22-35, and (v) costs expressly permitted by this Code. The total of the amount shown on the statement of redemption plus items (i) through (v), or portion thereof, shall be identified as the tax deed judgment amount. For certificates issued on or after July 1, 2026, the tax deed judgment amount shall include only allowable costs as defined in Section 1-4. No prohibited cost under Section 1-4 may be included for any purpose.

The purpose of the judicial tax deed auction shall be to test the fair market value of the property before final disposition by tax deed and to preserve any surplus proceeds for lawful claimants.

If the petitioner is a county proceeding under Section 21-191 and a tax deed is issued to the county prior to auction, the property shall nevertheless be offered at a judicial tax deed auction within the time required by Section 21-191 if the property is not redeemed.

No minimum bid shall include any fee, surcharge, or charge imposed primarily to capitalize an indemnity fund, surplus account, automation fund, registry, general revenue account, or other governmental account.

The order for judicial tax deed auction shall include such terms and conditions of the auction as specified by the court and the report of proceedings shall be filed and made a part of the court record.

(b) Except as provided in subsection (e) of this Section, if taxes for years prior to the year or years sold are or become delinquent subsequent to the date of sale, the court shall find that the lien of those delinquent taxes has been or will be merged into the tax deed grantee's title if the court determines that the tax deed grantee or any prior holder of the certificate of purchase, or any person or entity under common ownership or control with any such grantee or prior holder of the certificate of purchase, was at no time the holder of any certificate of purchase for the years sought to be merged. If delinquent taxes are merged into the tax deed pursuant to this subsection, the court shall enter an order declaring which specific taxes have been or will be merged into the tax deed title and directing the county treasurer and county clerk to reflect that declaration in the warrant and judgment records; provided, that no such order shall be effective until a tax deed has been issued and timely recorded. Nothing contained in this Section shall relieve any owner liable for delinquent property taxes under this Code from the payment of the taxes that have been merged into the title upon issuance of the tax deed.

(c) The county clerk is entitled to a fee of $10 in counties of 3,000,000 or more inhabitants and $5 in counties with less than 3,000,000 inhabitants for the issuance of the tax deed, with the exception of deeds issued to the county pursuant to its authority under Section 21-90 or Section 21-191. The clerk may not include in a tax deed more than one property as listed, assessed and sold in one description, except in cases where several properties are owned by one person.

Upon application, the court shall enter an order to place the tax deed grantee or the grantee's successor in interest in possession of the property and may enter orders and grant relief as may be necessary or desirable to maintain the grantee or the grantee's successor in interest in possession.

(d) The court shall retain jurisdiction to enter orders pursuant to subsections (b) and (c) of this Section. Public Act 92-223 and Public Act 95-477 shall be construed as being declarative of existing law and not as a new enactment.

(e) Prior to the issuance of any order for a judicial tax deed auction under this Section, the petitioner must redeem all taxes and special assessments on the property that are delinquent after the date of its tax sale subject to a pending tax petition filed by a county or its assignee pursuant to Section 21-90 or Section 21-191.

(f) If, for any reason, a purchaser fails to obtain an order for judicial tax deed auction or for tax deed within the required time period and no sale in error was granted or redemption paid, then the certificate shall be forfeited to the county, as trustee, pursuant to Section 21-90.

(g) Except as provided in Section 21-191, upon entry of an order requiring a judicial tax deed auction under subsection (a) of this Section, the property shall be offered for sale by public auction within 120 days after the date of the order and sold to the highest bidder at such an auction in accordance with Section 22-42 and subject to additional requirements set by the court's order.

(Source: P.A. 103-555, eff. 1-1-24; 104-417, eff. 8-15-25.)

(35 ILCS 200/22-42 new)

Sec. 22-42. Judicial tax deed auction and procedures.

(a) Notice of tax deed auction. The sheriff or duly appointed private selling officer shall give notice of the auction with the following information:

(1) the Property Identification Number and address listed on the most recent tax bill;

(2) the time and place of the auction including whether the auction will take place online, in person, or both, and the website where the online bidding may take place, if applicable;

(3) the terms of the auction; and

(4) the amount of the tax deed judgment amount provided in Section 22-40.

The Notice of Tax Deed Auction shall be in clear and concise language, together with a notice in Spanish, Polish, and Mandarin Chinese stating that the notice affects important legal rights and should be translated immediately. The Notice of Tax Deed Auction shall be mailed via first-class mail to all interested parties. The Notice of Tax Deed Auction shall be mailed via first-class mail and certified mail to the owner of the property, at the address at which service of the Section 22-10 Take Notice was attempted, and to any parties who have appeared in the proceeding. The notice shall include a sworn certificate of service signed by the party sending the notice attesting to the fact that the notice of auction was placed in the mail at least 10 calendar days prior to the date of the auction.

The Notice of Tax Deed Auction shall be published in at least 3 consecutive calendar weeks, once in each week. The first such notice shall be published not more than 45 days prior to the auction, and the last such notice shall be published not less than 7 days prior to the auction. If the property is located in a municipality in a county with less than 3,000,000 inhabitants, the petitioner shall also publish a notice in a newspaper published in the municipality and in such other publications as may be further ordered by the court. If the petitioner cannot identify a newspaper published in the municipality, or if the property is located in a county with 3,000,000 or more inhabitants, the notice shall be published in a newspaper published within the county and in such other publications as may be further ordered by the court. 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 and such other publications as may be further ordered by the court. The publication shall include all information included in the notice sent pursuant to this Section.

(b) Minimum bid. The selling officer shall start all bidding with a minimum bid equal to the tax deed judgment amount, plus only the cost for the publication of the judicial sale required in this Section and the costs of the selling officer. The selling officer shall proceed to a public judicial tax deed auction, offer the real estate for sale, and sell the real estate to the highest bidder. The highest bid at the judicial tax deed auction shall constitute the fair market value of the property for purposes of this Code. If no bidder is willing to pay the minimum bid, the petitioner shall be the winning bidder and be entitled to a tax deed, and it shall be conclusively presumed that there is no surplus equity in the property.

(c) Credit bid for petitioner. At the auction under this Section, the person conducting the auction shall enter a bid in favor of the petitioner in the amount of the minimum bid set forth above. Nothing in this Section shall be construed to prevent the petitioner from bidding at the public auction. However, if the petitioner is the winning bidder, the holder must pay cash for the difference between the winning bid and the minimum bid, plus any applicable costs or fees that may be attached to the winning bid.

(d) Receipt upon judicial tax deed auction. Upon and at the conclusion of the judicial tax deed auction, the person conducting the auction shall give to the purchaser a receipt of sale. The receipt shall describe the real estate purchased and shall show the amount bid, the total amount paid to date, and the amount still to be paid therefor. An additional receipt shall be given at the time of each subsequent payment. Any purchaser who fails to complete the sale for failure to make full payment shall forfeit to the county any deposit already made, and the court shall order a new auction of the property.

(e) Certificate of Judicial Tax Deed Auction. Upon payment in full of the amount bid, the sheriff or duly appointed selling officer conducting the sale shall issue, in duplicate, and give to the purchaser a certificate of judicial tax deed auction. The certificate shall be in a recordable form, describe the real estate purchased, indicate the date and place of sale and show the amount paid therefor. The certificate shall further indicate that it is subject to confirmation by the court. The certificate shall be freely assignable by endorsement thereon.

(f) Deposit of surplus funds. To the extent that the winning bid exceeds the minimum bid, upon the expiration of 30 days following confirmation of the sale, the selling officer shall deposit the surplus funds with the treasurer of the county in which the subject property lies and provide the treasurer with the parties and mailing addresses to which all Take Notices were sent pursuant to Section 22-10.

(g) Confirmation of sale; order for issuance of tax deed.

(1) The sheriff or selling officer conducting the sale shall promptly make a report to the court that issued the order authorizing the judicial tax deed auction, which report shall include a copy of all receipts and, if any, certificate of judicial tax deed auction.

(2) Upon motion and notice in accordance with court rules applicable to motions generally, which motion shall not be made prior to sale, the court shall conduct a hearing to confirm the sale. Unless the court finds that a notice required in this Section was not issued or the sale was not conducted in accordance with the order for judicial tax deed auction, the court shall enter an order:

(A) confirming the judicial tax deed auction sale;

(B) directing the county clerk to issue a tax deed in the name of the holder of the certificate of judicial tax deed auction once presented with a certified copy of the confirmation order and original certificate of judicial tax deed auction; and

(C) directing the selling officer to pay to the holder of the tax certificate the amount of the credit bid upon surrender of the tax certificate, and to pay the selling officer its fees.

(3) If the county is the holder of the tax certificate for property sold at a judicial tax deed auction in accordance with this Section, any proceeds of any such sale shall be distributed to the taxing districts in proportion to their respective interests therein. Notwithstanding the preceding, any distribution to the taxing districts shall be reduced by the costs expressly authorized by this Code associated with the sale of the property. Any surplus amount to be held by the county treasurer and distributed to former owners in accordance with this Section shall be excluded from distributions to taxing districts.

(4) If any judicial tax deed auction sale fails to comply with the requirements in this Section, any party may, by motion supported by affidavit made prior to confirmation of such sale, request that the court which entered the judgment set aside the judicial tax deed auction sale. Any such party shall guarantee or secure by bond a bid equal to the successful bid at the judicial tax deed auction. No guarantee or bond shall be required if the property is residential and the party seeking to set aside the sale is the owner-occupant of the property at the time the motion is filed. If the court denies confirmation of the judicial tax deed auction sale, it shall order a new judicial tax deed auction. Any subsequent auction is subject to the same notice requirement as the original auction.

(5) No sale under this Section shall be held invalid or be set aside because of any immaterial or insignificant defect in the notice thereof or in the publication of the same, or in the proceedings of the officer conducting the sale.

(h) Notice of surplus proceeds. Within 60 days following the deposit of surplus funds with the treasurer of the county, the treasurer shall send notice to all parties to which the Section 22-10 Take Notice was sent, stating that the owner or owners of the property at the time of the sale may submit a claim for the surplus funds to the county treasurer or the circuit court within 3 years of the date on the notice.

(i) Distribution of surplus proceeds. Upon receipt of a claim for surplus proceeds, the county treasurer, being satisfied of the facts in the case, shall distribute the surplus proceeds to the proper claimant. When the county treasurer is unable to determine the proper claimant, the county treasurer shall file a motion with the circuit court hearing the underlying tax case, requesting that the court determine whether an interested party is the owner of record entitled to a disbursement of surplus proceeds. Within 30 days following the filing of the motion, the court hearing the underlying tax case shall set a hearing to determine whether an interested party is the owner of record entitled to a disbursement of surplus proceeds. All interested parties in the underlying case shall be notified by the county treasurer. Any party claiming to have an ownership interest in the parcel at the time of the issuance of tax deed may present evidence of ownership and request a disbursement of any or all surplus proceeds. The court shall issue an order directing the treasurer to disburse a specific amount of surplus proceeds to specific parties, with sufficient personally identifiable information to accurately identify the parties entitled to disbursement.

(j) Disbursement hearing. Upon filing of a motion by a party claiming to be the owner of the property at the time of sale, within 30 days following the filing of the motion, the court hearing the underlying tax case shall set a hearing to determine whether an interested party is the owner entitled to a disbursement of surplus proceeds. All interested parties in the underlying case shall be notified by the movant. Any party claiming to be the owner of the property at the time of sale may present evidence of ownership and request a disbursement of any or all surplus proceeds. The court shall issue an order directing the treasurer to disburse a specific amount of surplus proceeds to specific parties, with sufficient personally identifiable information to accurately identify the parties entitled to disbursement.

(k) Certain deductions prohibited. No maintenance cost, administrative cost, overhead cost, or other prohibited cost under Section 1-4 shall be deducted from surplus proceeds.

(l) Interest. Interest earned on surplus proceeds while held by the county treasurer shall belong to the lawful claimant and shall be paid with the principal amount of the surplus proceeds.

(m) Disposition of unclaimed surplus funds. Surplus funds that have not been claimed within 3 years following the date on the county treasurer's notice shall be disposed of pursuant to the Revised Uniform Unclaimed Property Act.

(35 ILCS 200/22-43 new)

Sec. 22-43. Segregated escrow account for surplus proceeds.

(a) All surplus proceeds deposited with the county treasurer under this Code shall be held in a segregated, non-divertible escrow account.

(b) Moneys held in the escrow account shall not be transferred, appropriated, borrowed, swept, pledged, invested, or otherwise used for any county general fund, tort liability fund, county investment program, or other governmental purpose.

(c) Moneys held in the escrow account shall be used solely for disbursement of surplus proceeds to lawful claimants as authorized under this Code.

(d) The county treasurer shall maintain records of all deposits, balances, notices, disbursements, and transfers to unclaimed property.

(e) Records under this Section are public records subject to the Freedom of Information Act, except to the extent otherwise exempt under that Act.

(35 ILCS 200/22-65)

Sec. 22-65. Form of deed. A tax deed executed by the county clerk under the official seal of the county shall be recorded in the same manner as other conveyances of property, and vests in the grantee, his or her heirs and assigns, the title of the property therein described without further acknowledgment or evidence of the conveyance. Tax deeds issued under this Section shall not require a municipal transfer stamp or be subject to any municipal real estate transfer taxes, requirements, or certifications prior to recording. The conveyance shall be substantially in the following form: State of Illinois) ) ss. County of .......)

At a judicial tax deed auction public sale of property for the nonpayment of taxes, held in the county above stated, on (insert date), the following described property was sold: (here place description of property conveyed). The property not having been redeemed from the sale, and it appearing that the holder of the certificate of purchase of the property has complied with the laws of the State of Illinois necessary to entitle the holder (insert him, her or them) to a deed of the property: I ...., county clerk of the county of ...., in consideration of the premises property and by virtue of the statutes of the State of Illinois in such cases provided, grant and convey to ...., his or her heirs and assigns forever, the property described above.

Dated (insert date).

Signature of .................. County Clerk

Seal of County of ...., Illinois

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

Section 95. Applicability. The changes made by this amendatory Act apply only to tax certificates issued on or after July 1, 2026. Nothing in this amendatory Act applies to tax deeds issued before July 1, 2026, certificates issued before July 1, 2026, or any claim arising from a tax sale or tax deed occurring before July 1, 2026.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99. Effective date. This Act takes effect July 1, 2026.