Illinois General Assembly - Full Text of HB5747
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Full Text of HB5747  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 11/16/2022, by Rep. Michael J. Zalewski


35 ILCS 200/21-205

    Amends the Property Tax Code. Provides that, for the purposes of the single bidder rule, certain entities that share information, office space, or bidding strategy related to any parcel offered at a tax sale with any other registered individual are considered a related bidding entity. Provides that a registered participant that incurs damages as as a result of a violation of the single bidder rule may bring suit in the circuit court and may recover treble damages and reasonable attorney's fees.

LRB102 27243 HLH 38942 b





HB5747LRB102 27243 HLH 38942 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by changing
5Section 21-205 as follows:
6    (35 ILCS 200/21-205)
7    Sec. 21-205. Tax sale procedures.
8    (a) The collector, in person or by deputy, shall attend,
9on the day and in the place specified in the notice for the
10sale of property for taxes, and shall, between 9:00 a.m. and
114:00 p.m., or later at the collector's discretion, proceed to
12offer for sale, separately and in consecutive order, all
13property in the list on which the taxes, special assessments,
14interest or costs have not been paid. However, in any county
15with 3,000,000 or more inhabitants, the offer for sale shall
16be made between 8:00 a.m. and 8:00 p.m. The collector's office
17shall be kept open during all hours in which the sale is in
18progress. The sale shall be continued from day to day, until
19all property in the delinquent list has been offered for sale.
20However, any city, village or incorporated town interested in
21the collection of any tax or special assessment, may, in
22default of bidders, withdraw from collection the special
23assessment levied against any property by the corporate



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1authorities of the city, village or incorporated town. In case
2of a withdrawal, there shall be no sale of that property on
3account of the delinquent special assessment thereon.
4    (b) Until January 1, 2013, in every sale of property
5pursuant to the provisions of this Code, the collector may
6employ any automated means that the collector deems
7appropriate. Beginning on January 1, 2013, either (i) the
8collector shall employ an automated bidding system that is
9programmed to accept the lowest redemption price bid by an
10eligible tax purchaser, subject to the penalty percentage
11limitation set forth in Section 21-215, or (ii) all tax sales
12shall be digitally recorded with video and audio. All bidders
13are required to personally attend the sale and, if automated
14means are used, all hardware and software used with respect to
15those automated means must be certified by the Department and
16re-certified by the Department every 5 years. If the tax sales
17are digitally recorded and no automated bidding system is
18used, then the recordings shall be maintained by the collector
19for a period of at least 3 years from the date of the tax sale.
20The changes made by this amendatory Act of the 94th General
21Assembly are declarative of existing law.
22    (b-5) For any annual tax sale conducted on or after the
23effective date of this amendatory Act of the 102nd General
24Assembly, each county collector in a county with 275,000 or
25more inhabitants shall adopt a single bidder rule sufficient
26to prohibit a tax purchaser from registering more than one



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1related bidding entity at the tax sale. The corporate
2authorities in any county with less than 275,000 inhabitants
3may, by ordinance, allow the county collector of that county
4to adopt such a single bidder rule. In any county that has
5adopted a single bidder rule under this subsection (b-5), the
6county treasurer shall include a representation and warranty
7form in each registration package attesting to compliance with
8the single bidder rule, except that the county may, by
9ordinance, opt out of this representation and warranty form
10requirement. A single bidder rule under this subsection may be
11in the following form:
12        (1) A registered tax buying entity (principal) may
13    only have one registered buyer at the tax sale and may not
14    have a related bidding entity directly or indirectly
15    register as a buyer or participate in the tax sale. A
16    registered tax buying entity may not engage in any
17    multiple bidding strategy for the purpose of having more
18    than one related bidding entity submit bids at the tax
19    sale.
20        (2) A related bidding entity is defined as any
21    individual, corporation, partnership, joint venture,
22    limited liability company, business organization, or other
23    entity that has a shareholder, partner, principal,
24    officer, general partner, or other person or entity having
25    (i) an ownership interest in a bidding entity in common
26    with any other registered participant in the tax sale or



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1    (ii) a common guarantor in connection with a source of
2    financing with any other registered participant in the tax
3    sale. An individual, assumed name or "doing business as"
4    entity, corporation, partnership, joint venture, limited
5    liability company, business organization, or other entity
6    that shares information, office space, or bidding strategy
7    related to any parcel offered at the tax sale with any
8    other registered individual, assumed name or "doing
9    business as" entity, corporation, partnership, joint
10    venture, limited liability company, business organization,
11    or other entity that is a registered participant is also
12    considered a related bidding entity. The determination of
13    whether registered entities are related so as to prohibit
14    those entities from submitting duplicate bids in violation
15    of the single bidder rule is at the sole and exclusive
16    discretion of the county treasurer or his or her
17    designated representatives.
18    If a registered participant at a tax sale incurs damages
19on or after the effective date of this amendatory Act of the
20102nd General Assembly as a result of a violation of the single
21bidder rule under this Section, then that registered
22participant may bring suit, in the circuit court of the county
23where the tax sale occurred, against the registered
24participant or participants who are alleged to have violated
25the single bidder rule. Upon a finding by the court that a
26violation of the single bidder rule occurred, the person



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1bringing suit shall recover treble damages and reasonable
2attorney's fees. An action for a violation of the single
3bidder rule must be filed within 2 years after the date of
4discovery of the violation that gave rise to the claim.
5    (c) County collectors may, when applicable, eject tax
6bidders who disrupt the tax sale or use illegal bid practices.
7(Source: P.A. 102-519, eff. 8-20-21.)