Full Text of SB1710 97th General Assembly
SB1710sam001 97TH GENERAL ASSEMBLY | Sen. William R. Haine Filed: 3/8/2011
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| 1 | | AMENDMENT TO SENATE BILL 1710
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1710 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Property Tax Code is amended by changing | 5 | | Sections 21-205, 21-215, 21-310, and 21-315 as follows:
| 6 | | (35 ILCS 200/21-205)
| 7 | | Sec. 21-205. Tax sale procedures. The collector, in person | 8 | | or by deputy,
shall attend, on the day and in the place | 9 | | specified in the notice for the sale
of property for taxes, and | 10 | | shall, between 9:00 a.m. and 4:00 p.m., or later at
the | 11 | | collector's discretion, proceed to offer for sale, separately | 12 | | and in
consecutive order, all property in the list on which the | 13 | | taxes, special
assessments, interest or costs have not been | 14 | | paid. However, in any county with
3,000,000 or more | 15 | | inhabitants, the offer for sale shall be made between 8:00
a.m. | 16 | | and 8:00 p.m. The collector's office shall be kept open during |
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| 1 | | all hours
in which the sale is in progress. The sale shall be | 2 | | continued from day to day,
until all property in the delinquent | 3 | | list has been offered for sale. However,
any city, village or | 4 | | incorporated town interested in the collection of any tax
or | 5 | | special assessment, may, in default of bidders, withdraw from | 6 | | collection the
special assessment levied against any property | 7 | | by the corporate authorities of
the city, village or | 8 | | incorporated town. In case of a withdrawal, there shall be
no | 9 | | sale of that property on account of the delinquent special | 10 | | assessment
thereon.
| 11 | | In every sale of property pursuant to the provisions of | 12 | | this Code, the collector may employ any automated means that | 13 | | the collector deems appropriate, provided that bidders are | 14 | | required to personally attend the sale and, in counties with | 15 | | less than 3,000,000 inhabitants, the automated means must be | 16 | | certified by the Department. On and after the effective date of | 17 | | this amendatory Act of the 97th General Assembly, all tax sales | 18 | | in counties with less than 3,000,000 inhabitants shall be | 19 | | videotaped with audio . The changes made by this amendatory Act | 20 | | of the 94th General Assembly are declarative of existing law.
| 21 | | (Source: P.A. 94-922, eff. 1-1-07.)
| 22 | | (35 ILCS 200/21-215)
| 23 | | Sec. 21-215. Penalty bids. The person at the sale offering | 24 | | to pay the amount
due on each property for the least penalty | 25 | | percentage shall be the purchaser of
that property. No bid |
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| 1 | | shall be accepted for a penalty exceeding 18% of the
amount of | 2 | | the tax or special assessment on property. The collector may, | 3 | | at his or her discretion, declare the taxes forfeited if | 4 | | multiple simultaneous bids of the same percentage are made and | 5 | | subsequent lower bids are not made. However, if there are | 6 | | multiple bids for 0%, then the collector shall randomly select | 7 | | one of the bidders to be the purchaser of the property. During | 8 | | the
sale, in counties with less than 3,000,000 inhabitants, | 9 | | each bidder's percentage shall be disclosed to the other | 10 | | bidders.
In counties with less than 3,000,000 inhabitants, | 11 | | bidders shall have the opportunity to reduce their bids
during | 12 | | the sale after other bids have been disclosed. At the | 13 | | conclusion of the sale, a
record of the winning bid and the | 14 | | name of the tax purchaser
shall be open to public inspection.
| 15 | | (Source: P.A. 86-1431; 86-1480; 88-455.)
| 16 | | (35 ILCS 200/21-310)
| 17 | | Sec. 21-310. Sales in error.
| 18 | | (a) When, upon application of the county collector, the | 19 | | owner of the
certificate of purchase, or a
municipality which | 20 | | owns or has owned the property ordered sold, it appears to
the | 21 | | satisfaction of the court which ordered the property sold that | 22 | | any of the
following subsections are applicable, the court | 23 | | shall declare the sale to be a
sale in error:
| 24 | | (1) the property was not subject to taxation, or all or | 25 | | any part of the
lien of taxes sold has become null and void |
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| 1 | | pursuant to Section 21-95
or unenforceable pursuant to | 2 | | subsection (c) of Section 18-250 or subsection
(b) of | 3 | | Section 22-40,
| 4 | | (2) the taxes or special assessments had been paid | 5 | | prior to the sale of
the property,
| 6 | | (3) there is a double assessment,
| 7 | | (4) the description is void for uncertainty,
| 8 | | (5) the assessor, chief county assessment officer, | 9 | | board of review,
board of appeals, or other county official | 10 | | has made an error (other than an
error of judgment as to
| 11 | | the value of any property),
| 12 | | (5.5) the owner of the homestead property had tendered | 13 | | timely and full
payment to the county collector that the | 14 | | owner reasonably believed was due and
owing on the | 15 | | homestead property, and the county collector did not apply | 16 | | the
payment to the homestead property; provided that this | 17 | | provision applies only to
homeowners, not their agents or | 18 | | third-party payors,
| 19 | | (6) prior to the tax sale a voluntary or involuntary | 20 | | petition has been
filed by or against the legal or | 21 | | beneficial owner of the property requesting
relief under | 22 | | the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
| 23 | | (7) the property is owned by the United States, the | 24 | | State of Illinois,
a municipality, or a
taxing district, or | 25 | | (8) the owner of the property is a reservist or | 26 | | guardsperson who is granted an extension of his or her due |
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| 1 | | date under Sections 21-15, 21-20, and 21-25 of this Act.
| 2 | | (b) When, upon application of the owner of the certificate | 3 | | of purchase
only, it appears to the satisfaction of the court | 4 | | which ordered the property
sold that any of the following | 5 | | subsections are applicable, the court shall
declare the sale to | 6 | | be a sale in error:
| 7 | | (1) A voluntary or involuntary petition under the | 8 | | provisions of 11
U.S.C. Chapter 7, 11, 12, or 13 has been | 9 | | filed
subsequent to the tax sale and prior to the issuance | 10 | | of the tax deed.
| 11 | | (2) The improvements upon the property sold have been | 12 | | substantially
destroyed or rendered uninhabitable or | 13 | | otherwise unfit for occupancy subsequent
to the tax sale | 14 | | and prior to the issuance of the tax deed.
| 15 | | (3) There is an interest held by the United States in | 16 | | the property sold
which could not be extinguished by the | 17 | | tax deed.
| 18 | | (4) The real property contains a hazardous
substance, | 19 | | hazardous waste, or underground storage tank that would
| 20 | | require cleanup or other removal under any federal,
State, | 21 | | or local law, ordinance, or regulation, only if the tax | 22 | | purchaser
purchased the property without actual knowledge | 23 | | of the hazardous substance,
hazardous waste, or | 24 | | underground storage tank. This paragraph (4) applies only | 25 | | if the owner of the
certificate of purchase has made | 26 | | application for a sale in error at any time
before the |
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| 1 | | issuance of a tax deed.
| 2 | | (b-5) When, upon application of the owner of the property, | 3 | | it appears to the satisfaction of the court that ordered the | 4 | | property sold that any of the following conditions apply, the | 5 | | court shall declare the sale to be a sale in error: | 6 | | (1) the sale was not videotaped as required by Section | 7 | | 21-205; or | 8 | | (2) the sale was not held in the manner required by | 9 | | Section 21-215. | 10 | | Before the court may declare the sale to be a sale in error | 11 | | under this subsection (b-5), the property owner must redeem the | 12 | | property as provided in Section 21-355. Upon declaring the sale | 13 | | to be a sale in error, the court shall determine whether the | 14 | | property owner is required pay a penalty. If the court | 15 | | determines that the property owner is required to pay a | 16 | | penalty, then the court shall declare what the property owner | 17 | | owes as the equitable accrued penalty. | 18 | | (c) When the county collector discovers, prior to the | 19 | | expiration of the period of redemption, that a tax sale
should | 20 | | not have occurred for one or more of the reasons set forth in
| 21 | | subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, | 22 | | the county
collector shall notify the last known owner of the | 23 | | certificate of purchase by
certified and regular mail, or other | 24 | | means reasonably calculated to provide
actual notice, that the | 25 | | county collector intends to declare an administrative
sale in | 26 | | error and of the reasons therefor, including documentation |
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| 1 | | sufficient
to establish the reason why the sale should not have | 2 | | occurred. The owner of the
certificate of purchase may object | 3 | | in writing within 28 days after the date of
the mailing by the | 4 | | county collector. If an objection is filed, the county
| 5 | | collector shall not administratively declare a sale in error, | 6 | | but may apply to
the circuit court for a sale in error as | 7 | | provided in subsection (a) of this
Section. Thirty days | 8 | | following the receipt of notice by the last known owner of
the | 9 | | certificate of purchase, or within a reasonable time | 10 | | thereafter, the county
collector shall make a written | 11 | | declaration, based upon clear and convincing
evidence, that the | 12 | | taxes were sold in error and shall deliver a copy thereof to
| 13 | | the county clerk within 30 days after the date the declaration | 14 | | is made for
entry in the tax judgment, sale, redemption, and | 15 | | forfeiture record pursuant to
subsection (d) of this Section. | 16 | | The county collector shall promptly notify the
last known owner | 17 | | of the certificate of purchase of the declaration by regular
| 18 | | mail and shall promptly pay the amount of the tax sale, | 19 | | together with interest
and costs as provided in Section 21-315, | 20 | | upon surrender of the original
certificate of purchase.
| 21 | | (d) If a sale is declared to be a sale in error, the county
| 22 | | clerk shall make entry in the tax judgment, sale, redemption | 23 | | and
forfeiture record, that the property was erroneously sold, | 24 | | and the county
collector shall, on demand of the owner of the | 25 | | certificate of purchase, refund
the amount paid, pay any | 26 | | interest and costs as may be ordered under Sections
21-315 |
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| 1 | | through 21-335, and cancel the certificate so far as it relates | 2 | | to the
property. The county collector shall deduct from the | 3 | | accounts of the
appropriate taxing bodies their pro rata | 4 | | amounts paid.
| 5 | | (Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06; | 6 | | 95-331, eff. 8-21-07.)
| 7 | | (35 ILCS 200/21-315)
| 8 | | Sec. 21-315. Refund of costs; interest on refund.
| 9 | | (a) If a sale in
error under Section 21-310, 22-35, or | 10 | | 22-50
is declared, the amount refunded
shall also include all | 11 | | costs paid by the owner of the
certificate of
purchase or his | 12 | | or her assignor which were posted to the tax judgment, sale,
| 13 | | redemption and forfeiture record.
| 14 | | (b) In those cases which arise solely under grounds set | 15 | | forth in Section
21-310, the amount refunded shall also include
| 16 | | interest
on the refund of the amount paid
for the certificate | 17 | | of purchase, except as otherwise provided in this Section.
| 18 | | Interest shall be awarded and paid to the tax purchaser at the | 19 | | rate of 1% per
month from the date of sale to the date of | 20 | | payment, or in an amount equivalent
to the penalty interest | 21 | | which would be recovered on a redemption at the time of
payment | 22 | | pursuant to the order for sale in error, whichever is less. | 23 | | Interest
shall not be paid when the sale in error is made | 24 | | pursuant to paragraph (2) or
(4) of
subsection (b) of Section | 25 | | 21-310, paragraph (1) or (2) of subsection (b-5) of Section |
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| 1 | | 21-310, Section 22-35, Section 22-50, any ground
not enumerated | 2 | | in Section 21-310, or in any other case where the court
| 3 | | determines that the
tax purchaser had actual knowledge prior to | 4 | | the sale of the grounds on which
the sale is declared to be | 5 | | erroneous.
| 6 | | (c) When the county collector files a petition for sale in | 7 | | error under
Section 21-310 and mails a notice thereof by
| 8 | | certified or registered mail to the
last known owner of the | 9 | | certificate of purchase, any interest otherwise
payable under | 10 | | this Section shall cease to accrue as of the date the
petition | 11 | | is filed, unless the tax purchaser agrees to an order for sale | 12 | | in
error upon the presentation of the petition to the court. | 13 | | Notices under
this subsection may be mailed to the last known | 14 | | owner of the
certificate of
purchase. When the
owner of the | 15 | | certificate of purchase contests the collector's petition
| 16 | | solely to determine whether the grounds for sale in error are | 17 | | such as to
support a claim for interest, the court may direct | 18 | | that the principal
amount of the refund be paid to the owner of | 19 | | the certificate of purchase
forthwith. If the court thereafter | 20 | | determines that a claim for interest
lies under this Section, | 21 | | it shall award such interest from the date of sale
to the date | 22 | | the principal amount was paid. If the owner of the certificate | 23 | | of purchase files an objection to the county collector's | 24 | | intention to declare an administrative sale in error, as | 25 | | provided under subsection (c) of Section 21-310, and, | 26 | | thereafter, the county collector elects to apply to the circuit |
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| 1 | | court for a sale in error under subsection (a) of Section | 2 | | 21-310, then, if the circuit court grants the county | 3 | | collector's application for a sale in error, the court may not | 4 | | award interest to the owner of the certificate of purchase for | 5 | | the period after the mailing date of the county collector's | 6 | | notice of intention to declare an administrative sale in error.
| 7 | | (Source: P.A. 94-662, eff. 1-1-06.)".
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