SB2950 96TH GENERAL ASSEMBLY

LRB096 19858 HLH 35313 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB2950

Introduced 1/28/2010, by Sen. Ira I. Silverstein

SYNOPSIS AS INTRODUCED:

35 ILCS 200/21-315
35 ILCS 200/21-320
35 ILCS 200/21-330
35 ILCS 200/21-335
35 ILCS 200/22-39 new

Amends the Property Tax Code. Provides that no tax deed shall be issued for property in which a person with a disability has any ownership interest so long as an objection is raised by or on behalf of that person prior to the issuance of the tax deed or pursuant to certain provisions of the Code of Civil Procedure. Provides that any tax deed issued for property in which a person with a disability has an ownership interest shall be vacated upon petition by or on behalf of the person with a disability. Provides that, if the court refuses to enter an order directing the county clerk to execute and deliver the tax deed or if the court vacates the issuance of a tax deed, then, upon application of the owner of the certificate of purchase, the court shall declare the sale to be a sale in error. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by changing Sections 21-315, 21-320, 21-330, and 21-335 and by adding Section 22-39 as follows:

(35 ILCS 200/21-315)

Sec. 21-315. Refund of costs; interest on refund.

(a) If a sale in error under Section 21-310, 22-35, 22-39, or 22-50 is declared, the amount refunded shall also include all costs paid by the owner of the certificate of purchase or his or her assignor which were posted to the tax judgment, sale, redemption and forfeiture record.

(b) In those cases which arise solely under grounds set forth in Section 21-310 or 22-39, the amount refunded shall also include interest on the refund of the amount paid for the certificate of purchase, except as otherwise provided in this Section. Interest shall be awarded and paid to the tax purchaser at the rate of 1% per month from the date of sale to the date of payment, or in an amount equivalent to the penalty interest which would be recovered on a redemption at the time of payment pursuant to the order for sale in error, whichever is less. Except as previously stated in this subsection, interest Interest shall not be paid when the sale in error is made pursuant to paragraph (2) or (4) of subsection (b) of Section 21-310, Section 22-35, Section 22-50, any ground not enumerated in Section 21-310, or in any other case where the court determines that the tax purchaser had actual knowledge prior to the sale of the grounds on which the sale is declared to be erroneous.

(c) When the county collector files a petition for sale in error under Section 21-310 and mails a notice thereof by certified or registered mail to the last known owner of the certificate of purchase, any interest otherwise payable under this Section shall cease to accrue as of the date the petition is filed, unless the tax purchaser agrees to an order for sale in error upon the presentation of the petition to the court. Notices under this subsection may be mailed to the last known owner of the certificate of purchase. When the owner of the certificate of purchase contests the collector's petition solely to determine whether the grounds for sale in error are such as to support a claim for interest, the court may direct that the principal amount of the refund be paid to the owner of the certificate of purchase forthwith. If the court thereafter determines that a claim for interest lies under this Section, it shall award such interest from the date of sale to the date the principal amount was paid. If the owner of the certificate of purchase files an objection to the county collector's intention to declare an administrative sale in error, as provided under subsection (c) of Section 21-310, and, thereafter, the county collector elects to apply to the circuit court for a sale in error under subsection (a) of Section 21-310, then, if the circuit court grants the county collector's application for a sale in error, the court may not award interest to the owner of the certificate of purchase for the period after the mailing date of the county collector's notice of intention to declare an administrative sale in error.

(Source: P.A. 94-662, eff. 1-1-06.)

(35 ILCS 200/21-320)

Sec. 21-320. Refund of other taxes paid by holder of certificate of purchase. If a sale in error under Section 21-310, 22-35, 22-39, or 22-50 is declared, the amount refunded shall also include other taxes paid or redeemed by the owner of the certificate of purchase or his or her assignor subsequent to the tax sale, together with interest on those other taxes under the same terms as interest is otherwise payable under Section 21-315. The interest under this subsection shall be calculated at the rate of 1% per month from the date the other taxes were paid and not from the date of sale. The collector shall take credit in settlement of his or her accounts for the refund of the other taxes as in other cases of sale in error under Section 21-310.

(Source: P.A. 92-224, eff. 1-1-02; 92-729, eff. 7-25-02.)

(35 ILCS 200/21-330)

Sec. 21-330. Fund for payment of interest. In counties of under 3,000,000 inhabitants, the county board may impose a fee of up to $60, which shall be paid to the county collector, upon each person purchasing any property at a sale held under this Code, prior to the issuance of any certificate of purchase. Each person purchasing any property at a sale held under this Code in a county with 3,000,000 or more inhabitants shall pay to the county collector, prior to the issuance of any certificate of purchase, a fee of $100 for each item purchased. That amount shall be included in the price paid for the certificate of purchase and the amount required to redeem under Section 21-355.

All sums of money received under this Section shall be paid by the collector to the county treasurer of the county in which the property is situated for deposit into a special fund. It shall be the duty of the county treasurer, as trustee of the fund, to invest the principal and income of the fund from time to time, if not immediately required for payments under this Section, in investments as are authorized by Sections 3-10009 and 3-11002 of the Counties Code. The fund shall be held to pay interest and costs by the county treasurer as trustee of the fund. No payment shall be made from the fund except by order of the court declaring a sale in error under Section 21-310, 22-35, 22-39, or 22-50 or by declaration of the county collector under subsection (c) of Section 21-310. Any moneys accumulated in the fund by the county treasurer in excess of (i) $100,000 in counties with 250,000 or less inhabitants or (ii) $500,000 in counties with more than 250,000 inhabitants shall be paid each year prior to the commencement of the annual tax sale, first to satisfy any existing unpaid judgments entered pursuant to Section 21-295, and any funds remaining thereafter shall be paid to the general fund of the county.

(Source: P.A. 94-362, eff. 7-29-05.)

(35 ILCS 200/21-335)

Sec. 21-335. Claims for interest and costs. Any person claiming interest or costs under Sections 21-315 through 21-330 shall include the claim in his or her petition for sale in error under Section 21-310, 22-35, 22-39, or 22-50. Any claim for interest or costs which is not included in the petition is waived. Interest or costs may be awarded, however, to the extent permitted by this Section upon a sale in error petition filed by the county collector or municipality or upon a declaration by the county collector pursuant to subsection (c) of Section 21-310, without requiring a separate filing by the claimant. Any refund of interest or costs upon the petition for sale in error or upon a declaration by the county collector pursuant to subsection (c) of Section 21-310 shall be paid by the county treasurer as trustee of the fund created by this Section. The fund shall be the sole source for payment and satisfaction of orders for interest or costs, except as otherwise provided in this subsection. If the court determines that the fund has been depleted and will not be restored in time to pay an award with reasonable promptness, the court may authorize the collector to pay the interest portion of the award pro rata from those accounts where the principal refund of the tax sale purchase price under Section 21-310 is taken.

(Source: P.A. 92-224, eff. 1-1-02; 92-729, eff. 7-25-02.)

(35 ILCS 200/22-39 new)

Sec. 22-39. Protection of persons with disabilities.

(a) A "person with a disability" means any one of the following:

(1) a person with a developmental disability as defined by Section 11a-1 of the Probate Act of 1975 or Section 1-106 of the Mental Health and Developmental Disabilities Code during any portion of the redemption period;

(2) a person who, by a preponderance of the evidence, establishes that he or she was suffering from some mental disability, deterioration, physical incapacity, or mental illness, and, as result of that mental disability, deterioration, physical incapacity, or mental illness, was unable to fully manage his or her estate or financial affairs during any portion of the redemption period;

(3) a person who, prior to or during the redemption period, was adjudged a disabled person in accordance with Sections 11a-2 and 11a-3 of the Probate Act of 1975 and for whom a plenary or limited guardian was appointed in accordance with Section 11a-12 of the Probate Act of 1975, if that limited or plenary guardian did not receive the notices required under Sections 22-5, 22-10, 22-15, 22-20, 22-25, and 22-30 of this Code; or

(4) any person receiving treatment at a mental health facility in accordance with the Mental Health And Developmental Disabilities Code during any portion of the redemption period.

(b) No tax deed shall be issued for property in which a person with a disability has any ownership interest so long as an objection is raised by or on behalf of the person with a disability prior to the issuance of the tax deed. Within 30 days after the issuance of the tax deed, such objection may be raised by or on behalf of the person with a disability pursuant to Section 2-1203 of the Code of Civil Procedure.

(c) Any tax deed issued for property in which a person with a disability has an ownership interest shall be vacated upon petition by or on behalf of the person with a disability. To the extent that the provisions of Section 22-45 of this Code limit relief under Section 2-1401 of the Code of Civil Procedure, those provisions shall not bar or otherwise limit a person with a disability from invoking this Section as a basis for vacating the issuance of a tax deed pursuant to this Section.

(d) An objection or petition to vacate a tax deed brought pursuant to this Section is to be considered in light of equitable principles.

(e) If the court refuses to enter an order directing the county clerk to execute and deliver the tax deed or if the court vacates the issuance of a tax deed in accordance with this Section, then, upon application of the owner of the certificate of purchase, the court shall declare the sale to be a sale in error.

(f) That a person with a disability does not raise an objection to the issuance of a tax deed or seek to vacate a tax deed based upon this Section does not bar any indemnity action pursuant to Section 21-305 of this Code brought by or on behalf of the person with a disability.

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