Full Text of SB2053 94th General Assembly
SB2053eng 94TH GENERAL ASSEMBLY
|
|
|
SB2053 Engrossed |
|
LRB094 05570 BDD 35619 b |
|
| 1 |
| AN ACT concerning revenue.
| 2 |
| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Property Tax Code is amended by changing | 5 |
| Sections 21-310 and 21-315 as follows:
| 6 |
| (35 ILCS 200/21-310)
| 7 |
| Sec. 21-310. Sales in error.
| 8 |
| (a) When, upon application of the county collector, the | 9 |
| owner of the
certificate of purchase, or a
municipality which | 10 |
| owns or has owned the property ordered sold, it appears to
the | 11 |
| satisfaction of the court which ordered the property sold that | 12 |
| any of the
following subsections are applicable, the court | 13 |
| shall declare the sale to be a
sale in error:
| 14 |
| (1) the property was not subject to taxation, or all or | 15 |
| any part of the
lien of taxes sold has become null and void | 16 |
| pursuant to Section 21-95
or unenforceable pursuant to | 17 |
| subsection (c) of Section 18-250 or subsection
(b) of | 18 |
| Section 22-40,
| 19 |
| (2) the taxes or special assessments had been paid | 20 |
| prior to the sale of
the property,
| 21 |
| (3) there is a double assessment,
| 22 |
| (4) the description is void for uncertainty,
| 23 |
| (5) the assessor, chief county assessment officer, | 24 |
| board of review,
board of appeals, or other county official | 25 |
| has made an error (other than an
error of judgment as to
| 26 |
| the value of any property),
| 27 |
| (5.5) the owner of the homestead property had tendered | 28 |
| timely and full
payment to the county collector that the | 29 |
| owner reasonably believed was due and
owing on the | 30 |
| homestead property, and the county collector did not apply | 31 |
| the
payment to the homestead property; provided that this | 32 |
| provision applies only to
homeowners, not their agents or |
|
|
|
SB2053 Engrossed |
- 2 - |
LRB094 05570 BDD 35619 b |
|
| 1 |
| third-party payors,
| 2 |
| (6) prior to the tax sale a voluntary or involuntary | 3 |
| petition has been
filed by or against the legal or | 4 |
| beneficial owner of the property requesting
relief under | 5 |
| the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
or
| 6 |
| (7) the property is owned by the United States, the | 7 |
| State of Illinois,
a municipality, or a
taxing district.
| 8 |
| (b) When, upon application of the owner of the certificate | 9 |
| of purchase
only, it appears to the satisfaction of the court | 10 |
| which ordered the property
sold that any of the following | 11 |
| subsections are applicable, the court shall
declare the sale to | 12 |
| be a sale in error:
| 13 |
| (1) A voluntary or involuntary petition under the | 14 |
| provisions of 11
U.S.C. Chapter 7, 11, 12, or 13 has been | 15 |
| filed
subsequent to the tax sale and prior to the issuance | 16 |
| of the tax deed.
| 17 |
| (2) The improvements upon the property sold have been | 18 |
| substantially
destroyed or rendered uninhabitable or | 19 |
| otherwise unfit for occupancy subsequent
to the tax sale | 20 |
| and prior to the issuance of the tax deed.
| 21 |
| (3) There is an interest held by the United States in | 22 |
| the property sold
which could not be extinguished by the | 23 |
| tax deed.
| 24 |
| (4) The real property contains a hazardous
substance, | 25 |
| hazardous waste, or underground storage tank that would
| 26 |
| require cleanup or other removal under any federal,
State, | 27 |
| or local law, ordinance, or regulation, only if the tax | 28 |
| purchaser
purchased the property without actual knowledge | 29 |
| of the hazardous substance,
hazardous waste, or | 30 |
| underground storage tank. This paragraph (4) applies only | 31 |
| if the owner of the
certificate of purchase has made | 32 |
| application for a sale in error at any time
before the | 33 |
| issuance of a tax deed.
| 34 |
| (c) When the county collector discovers , within one year | 35 |
| after the
date of sale if taxes were sold at an annual tax sale | 36 |
| or within 180 days after
the date of sale if taxes were sold at |
|
|
|
SB2053 Engrossed |
- 3 - |
LRB094 05570 BDD 35619 b |
|
| 1 |
| a scavenger tax sale, that a tax sale
should not have occurred | 2 |
| for one or more of the reasons set forth in
subdivision (a)(1), | 3 |
| (a)(2), (a)(6), or (a)(7) of this Section, the county
collector | 4 |
| shall notify the last known owner of the certificate of | 5 |
| purchase by
certified and regular mail, or other means | 6 |
| reasonably calculated to provide
actual notice, that the county | 7 |
| collector intends to declare an administrative
sale in error | 8 |
| and of the reasons therefor, including documentation | 9 |
| sufficient
to establish the reason why the sale should not have | 10 |
| occurred. The owner of the
certificate of purchase may object | 11 |
| in writing within 28 days after the date of
the mailing by the | 12 |
| county collector. If an objection is filed, the county
| 13 |
| collector shall not administratively declare a sale in error, | 14 |
| but may apply to
the circuit court for a sale in error as | 15 |
| provided in subsection (a) of this
Section. Thirty days | 16 |
| following the receipt of notice by the last known owner of
the | 17 |
| certificate of purchase, or within a reasonable time | 18 |
| thereafter, the county
collector shall make a written | 19 |
| declaration, based upon clear and convincing
evidence, that the | 20 |
| taxes were sold in error and shall deliver a copy thereof to
| 21 |
| the county clerk within 30 days after the date the declaration | 22 |
| is made for
entry in the tax judgment, sale, redemption, and | 23 |
| forfeiture record pursuant to
subsection (d) of this Section. | 24 |
| The county collector shall promptly notify the
last known owner | 25 |
| of the certificate of purchase of the declaration by regular
| 26 |
| mail and shall promptly pay the amount of the tax sale, | 27 |
| together with interest
and costs as provided in Section 21-315, | 28 |
| upon surrender of the original
certificate of purchase.
| 29 |
| (d) If a sale is declared to be a sale in error, the county
| 30 |
| clerk shall make entry in the tax judgment, sale, redemption | 31 |
| and
forfeiture record, that the property was erroneously sold, | 32 |
| and the county
collector shall, on demand of the owner of the | 33 |
| certificate of purchase, refund
the amount paid, pay any | 34 |
| interest and costs as may be ordered under Sections
21-315 | 35 |
| through 21-335, and cancel the certificate so far as it relates | 36 |
| to the
property. The county collector shall deduct from the |
|
|
|
SB2053 Engrossed |
- 4 - |
LRB094 05570 BDD 35619 b |
|
| 1 |
| accounts of the
appropriate taxing bodies their pro rata | 2 |
| amounts paid.
| 3 |
| (Source: P.A. 91-177, eff. 1-1-00; 91-357, eff. 7-29-99; | 4 |
| 91-924, eff. 1-1-01;
92-224, eff. 1-1-02; 92-729, eff. | 5 |
| 7-25-02.)
| 6 |
| (35 ILCS 200/21-315)
| 7 |
| Sec. 21-315. Refund of costs; interest on refund.
| 8 |
| (a) If a sale in
error under Section 21-310, 22-35, or | 9 |
| 22-50
is declared, the amount refunded
shall also include all | 10 |
| costs paid by the owner of the
certificate of
purchase or his | 11 |
| or her assignor which were posted to the tax judgment, sale,
| 12 |
| redemption and forfeiture record.
| 13 |
| (b) In those cases which arise solely under grounds set | 14 |
| forth in Section
21-310, the amount refunded shall also include
| 15 |
| interest
on the refund of the amount paid
for the certificate | 16 |
| of purchase, except as otherwise provided in this Section.
| 17 |
| Interest shall be awarded and paid to the tax purchaser at the | 18 |
| rate of 1% per
month from the date of sale to the date of | 19 |
| payment, or in an amount equivalent
to the penalty interest | 20 |
| which would be recovered on a redemption at the time of
payment | 21 |
| pursuant to the order for sale in error, whichever is less. | 22 |
| Interest
shall not be paid when the sale in error is made | 23 |
| pursuant to paragraph (2) or
(4) of
subsection (b) of Section | 24 |
| 21-310, Section 22-35, Section 22-50, any ground
not enumerated | 25 |
| in Section 21-310, or in any other case where the court
| 26 |
| determines that the
tax purchaser had actual knowledge prior to | 27 |
| the sale of the grounds on which
the sale is declared to be | 28 |
| erroneous.
| 29 |
| (c) When the county collector files a petition for sale in | 30 |
| error under
Section 21-310 and mails a notice thereof by
| 31 |
| certified or registered mail to the
last known owner of the | 32 |
| certificate of purchase, any interest otherwise
payable under | 33 |
| this Section shall cease to accrue as of the date the
petition | 34 |
| is filed, unless the tax purchaser agrees to an order for sale | 35 |
| in
error upon the presentation of the petition to the court. |
|
|
|
SB2053 Engrossed |
- 5 - |
LRB094 05570 BDD 35619 b |
|
| 1 |
| Notices under
this subsection may be mailed to the last known | 2 |
| owner of the
certificate of
purchase. When the
owner of the | 3 |
| certificate of purchase contests the collector's petition
| 4 |
| solely to determine whether the grounds for sale in error are | 5 |
| such as to
support a claim for interest, the court may direct | 6 |
| that the principal
amount of the refund be paid to the owner of | 7 |
| the certificate of purchase
forthwith. If the court thereafter | 8 |
| determines that a claim for interest
lies under this Section, | 9 |
| it shall award such interest from the date of sale
to the date | 10 |
| the principal amount was paid. If the owner of the certificate | 11 |
| of purchase files an objection to the county collector's | 12 |
| intention to declare an administrative sale in error, as | 13 |
| provided under subsection (c) of Section 21-310, and, | 14 |
| thereafter, the county collector elects to apply to the circuit | 15 |
| court for a sale in error under subsection (a) of Section | 16 |
| 21-310, then, if the circuit court grants the county | 17 |
| collector's application for a sale in error, the court may not | 18 |
| award interest to the owner of the certificate of purchase for | 19 |
| the period after the mailing date of the county collector's | 20 |
| notice of intention to declare an administrative sale in error.
| 21 |
| (Source: P.A. 92-224, eff. 1-1-02; 92-729, eff. 7-25-02.)
|
|