Full Text of SB2020 103rd General Assembly
SB2020sam001 103RD GENERAL ASSEMBLY | Sen. Ram Villivalam Filed: 3/3/2023
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| 1 | | AMENDMENT TO SENATE BILL 2020
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2020 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Property Tax Code is amended by changing | 5 | | Sections 21-240, 21-310, 21-330, 22-10, 22-35, and 22-50 as | 6 | | follows:
| 7 | | (35 ILCS 200/21-240)
| 8 | | Sec. 21-240.
Payment for property purchased at tax sale; | 9 | | reoffering for
sale. Except as otherwise provided below, the | 10 | | person purchasing any property,
or any part thereof, shall be | 11 | | liable to the county for the amount due and shall
forthwith pay | 12 | | to the county collector the amount charged on the property. | 13 | | Upon
failure to do so, the amount due shall be recoverable in a | 14 | | civil action brought
in the name of the People of the State of | 15 | | Illinois in any court of competent
jurisdiction. The person so | 16 | | purchasing shall be relieved of liability only by
payment of |
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| 1 | | the amount due together with interest and costs thereon, or if | 2 | | the
property is reoffered at the sale, purchased and paid for. | 3 | | Reoffering of the
property for sale shall be at the discretion | 4 | | of the collector. The sale shall
not be closed until payment is | 5 | | made or the property again offered for sale. In
counties with | 6 | | 3,000,000 or more inhabitants, only the taxes, special
| 7 | | assessments, interest and costs as advertised in the sale | 8 | | shall be required to
be paid forthwith. The general taxes | 9 | | charged on the land remaining due and
unpaid, including | 10 | | amounts subject to certificates of error, not included in the
| 11 | | advertisement, shall be paid by the purchaser within 10 days | 12 | | after the sale,
except that upon payment of the fee provided by | 13 | | law to the County Clerk (which
fee shall be deemed part of the | 14 | | costs of sale) the purchaser may make written
application, | 15 | | within the 10 day period, to the county clerk for a statement | 16 | | of
all taxes, interest and costs due and an estimate of the | 17 | | cost of redemption of
all forfeited general taxes, which were | 18 | | not included in the advertisement.
After obtaining such | 19 | | statement and estimate and an order on the county
collector to | 20 | | receive the amount of forfeited general taxes, if any, the
| 21 | | purchaser shall pay to the county collector all the remaining | 22 | | taxes, interest
and costs, and the amount necessary to redeem | 23 | | the forfeited general taxes. The
county collector shall issue | 24 | | the purchaser a receipt therefor. Any delay in
providing the | 25 | | statement or in accepting payment, and delivering receipt
| 26 | | therefor, shall not be counted as a part of the 10 days. When |
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| 1 | | the receipt of
the collector is issued, a copy shall be filed | 2 | | with the county clerk and the
county clerk shall include the | 3 | | amount shown in such receipt in the amount of
the purchase | 4 | | price of the property in the certificate of purchase. The
| 5 | | purchaser then shall be entitled to a certificate of purchase. | 6 | | If a purchaser
fails to complete his or her purchase as | 7 | | provided in this Section, the purchase
shall become void, and | 8 | | be of no effect, but the collector shall not refund the
amount | 9 | | paid in cash at the time of the sale, except in cases of sale | 10 | | in error under subsection (a) of Section 21-310 .
That amount | 11 | | shall be treated as a payment and distributed to the taxing | 12 | | bodies
as other collections are distributed. The lien for | 13 | | taxes for the amount paid
shall remain on the property, in | 14 | | favor of the purchaser, his or her heirs or
assigns, until paid | 15 | | with 5% interest per year on that amount from the date the
| 16 | | purchaser paid it. The amount and fact of such ineffective | 17 | | purchase shall be
entered in the tax judgment, sale, | 18 | | redemption and forfeiture record opposite
the property upon | 19 | | which the lien remains. No redemption shall be made without
| 20 | | payment of this amount for the benefit of the purchaser, and no | 21 | | future sale of
the property shall be made except subject to the | 22 | | lien of such purchaser. This
section shall not apply to any | 23 | | purchase by any city, village or incorporated
town in default | 24 | | of other bidders at any sale for delinquent special
| 25 | | assessments.
| 26 | | (Source: P.A. 84-1308; 88-455.)
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| 1 | | (35 ILCS 200/21-310)
| 2 | | Sec. 21-310. Sales in error.
| 3 | | (a) When, upon application of the county collector, the | 4 | | owner of the
certificate of purchase, or a
municipality which | 5 | | owns or has owned the property ordered sold, it appears to
the | 6 | | satisfaction of the court which ordered the property sold that | 7 | | any of the
following subsections are applicable, the court | 8 | | shall declare the sale to be a
sale in error:
| 9 | | (1) the property was not subject to taxation, or all | 10 | | or any part of the
lien of taxes sold has become null and | 11 | | void pursuant to Section 21-95
or unenforceable pursuant | 12 | | to subsection (c) of Section 18-250 or subsection
(b) of | 13 | | Section 22-40 ; ,
| 14 | | (2) the taxes or special assessments had been paid | 15 | | prior to the sale of
the property ; ,
| 16 | | (3) there is a double assessment ; ,
| 17 | | (4) the description is void for uncertainty ; ,
| 18 | | (5) the assessor, chief county assessment officer, | 19 | | board of review,
board of appeals, or other county | 20 | | official has made an error material to the tax sale at | 21 | | issue (other than an
error of judgment as to
the value of | 22 | | any property or an error in the description of the | 23 | | physical characteristics, location, or picture of the | 24 | | property ) ; ,
| 25 | | (5.5) the owner of the homestead property had tendered |
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| 1 | | timely and full
payment to the county collector that the | 2 | | owner reasonably believed was due and
owing on the | 3 | | homestead property, and the county collector did not apply | 4 | | the
payment to the homestead property; provided that this | 5 | | provision applies only to
homeowners, not their agents or | 6 | | third-party payors ; ,
| 7 | | (6) prior to the tax sale a voluntary or involuntary | 8 | | petition has been
filed by or against the legal or | 9 | | beneficial owner of the property requesting
relief under | 10 | | the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13, the | 11 | | property is subject to an automatic stay pursuant to that | 12 | | petition, and that stay is active on the date of that sale;
| 13 | | (7) the property is owned by the United States, the | 14 | | State of Illinois,
a municipality, or a
taxing district ; , | 15 | | or | 16 | | (8) the owner of the property is a reservist or | 17 | | guardsperson who is granted an extension of his or her due | 18 | | date under Sections 21-15, 21-20, and 21-25 of this Act.
| 19 | | (b) When, upon application of the owner of the certificate | 20 | | of purchase
only, it appears to the satisfaction of the court | 21 | | which ordered the property
sold that any of the following | 22 | | subsections are applicable, the court shall
declare the sale | 23 | | to be a sale in error:
| 24 | | (1) (Blank). A voluntary or involuntary petition under | 25 | | the provisions of 11
U.S.C. Chapter 7, 11, 12, or 13 has | 26 | | been filed
subsequent to the tax sale and prior to the |
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| 1 | | issuance of the tax deed.
| 2 | | (2) The improvements upon the property sold have been | 3 | | substantially
destroyed or rendered uninhabitable or | 4 | | otherwise unfit for occupancy subsequent
to the tax sale | 5 | | and prior to the issuance of the tax deed; however, if the | 6 | | court declares a sale in error under this paragraph (2), | 7 | | the court may order the holder of the certificate of | 8 | | purchase to assign the certificate to the county collector | 9 | | if requested by the county collector. The county collector | 10 | | may, upon request of the county, as trustee, or upon | 11 | | request of a taxing district having an interest in the | 12 | | taxes sold, further assign any certificate of purchase | 13 | | received pursuant to this paragraph (2) to the county | 14 | | acting as trustee for taxing districts pursuant to Section | 15 | | 21-90 of this Code or to the taxing district having an | 16 | | interest in the taxes sold.
| 17 | | (3) There is an interest held by the United States in | 18 | | the property sold
which could not be extinguished by the | 19 | | tax deed.
| 20 | | (4) The real property contains a hazardous
substance, | 21 | | hazardous waste, or underground storage tank that would
| 22 | | require cleanup or other removal under any federal,
State, | 23 | | or local law, ordinance, or regulation, only if the tax | 24 | | purchaser
purchased the property without actual knowledge | 25 | | of the hazardous substance,
hazardous waste, or | 26 | | underground storage tank. This paragraph (4) applies only |
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| 1 | | if the owner of the
certificate of purchase has made | 2 | | application for a sale in error at any time
before the | 3 | | issuance of a tax deed. If the court declares a sale in | 4 | | error under this paragraph (4), the court may order the | 5 | | holder of the certificate of purchase to assign the | 6 | | certificate to the county collector if requested by the | 7 | | county collector. The county collector may, upon request | 8 | | of the county, as trustee, or upon request of a taxing | 9 | | district having an interest in the taxes sold, further | 10 | | assign any certificate of purchase received pursuant to | 11 | | this paragraph (4) to the county acting as trustee for | 12 | | taxing districts pursuant to Section 21-90 of this Code or | 13 | | to the taxing district having an interest in the taxes | 14 | | sold.
| 15 | | Whenever a court declares a sale in error under this | 16 | | subsection (b), the court shall promptly notify the county | 17 | | collector in writing. Every such declaration pursuant to any | 18 | | provision of this subsection (b) shall be made within the | 19 | | proceeding in which the tax sale was authorized. | 20 | | (c) When the county collector discovers, prior to the | 21 | | expiration of the period of redemption, that a tax sale
should | 22 | | not have occurred for one or more of the reasons set forth in
| 23 | | subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, | 24 | | the county
collector shall notify the last known owner of the | 25 | | certificate of purchase by
certified and regular mail, or | 26 | | other means reasonably calculated to provide
actual notice, |
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| 1 | | that the county collector intends to declare an administrative
| 2 | | sale in error and of the reasons therefor, including | 3 | | documentation sufficient
to establish the reason why the sale | 4 | | should not have occurred. The owner of the
certificate of | 5 | | purchase may object in writing within 28 days after the date of
| 6 | | the mailing by the county collector. If an objection is filed, | 7 | | the county
collector shall not administratively declare a sale | 8 | | in error, but may apply to
the circuit court for a sale in | 9 | | error as provided in subsection (a) of this
Section. Thirty | 10 | | days following the receipt of notice by the last known owner of
| 11 | | the certificate of purchase, or within a reasonable time | 12 | | thereafter, the county
collector shall make a written | 13 | | declaration, based upon clear and convincing
evidence, that | 14 | | the taxes were sold in error and shall deliver a copy thereof | 15 | | to
the county clerk within 30 days after the date the | 16 | | declaration is made for
entry in the tax judgment, sale, | 17 | | redemption, and forfeiture record pursuant to
subsection (d) | 18 | | of this Section. The county collector shall promptly notify | 19 | | the
last known owner of the certificate of purchase of the | 20 | | declaration by regular
mail and shall promptly pay the amount | 21 | | of the tax sale, together with interest
and costs as provided | 22 | | in Section 21-315, upon surrender of the original
certificate | 23 | | of purchase.
| 24 | | (d) If a sale is declared to be a sale in error, the county
| 25 | | clerk shall make entry in the tax judgment, sale, redemption | 26 | | and
forfeiture record, that the property was erroneously sold, |
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| 1 | | and the county
collector shall, on demand of the owner of the | 2 | | certificate of purchase, refund
the amount paid, except for | 3 | | the nonrefundable $80 fee paid, pursuant to Section 21-295, | 4 | | for each item purchased at the tax sale, pay any interest and | 5 | | costs as may be ordered under Sections
21-315 through 21-335, | 6 | | and cancel the certificate so far as it relates to the
| 7 | | property. The county collector shall deduct from the accounts | 8 | | of the
appropriate taxing bodies their pro rata amounts paid. | 9 | | Alternatively, for sales in error declared under subsection | 10 | | (b)(2) or (b)(4), the county collector may request the circuit | 11 | | court to direct the county clerk to record any assignment of | 12 | | the tax certificate to or from the county collector without | 13 | | charging a fee for the assignment. The owner of the | 14 | | certificate of purchase shall receive all statutory refunds | 15 | | and payments. The county collector shall deduct costs and | 16 | | payments in the same manner as if a sale in error had occurred.
| 17 | | (Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20; | 18 | | 101-659, eff. 3-23-21.)
| 19 | | (35 ILCS 200/21-330)
| 20 | | Sec. 21-330. Fund for payment of interest. In all counties | 21 | | of less than 3,000,000 inhabitants, the county board, by | 22 | | resolution, may impose a fee for payment of interest and | 23 | | costs. Each person purchasing any property at a sale under | 24 | | this Code shall pay to the county collector, prior to the | 25 | | issuance of any certificate of purchase, a fee of up to $60 for |
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| 1 | | each item purchased.
Each person purchasing
any
property at a | 2 | | sale held under this Code in a county with 3,000,000 or more
| 3 | | inhabitants shall pay to the county collector,
prior to the | 4 | | issuance of any certificate of purchase, a nonrefundable fee | 5 | | of $100 for each
item purchased. That amount shall be included | 6 | | in the
price paid for the certificate of purchase and the | 7 | | amount required to redeem
under Section 21-355.
| 8 | | All sums of money received under this Section shall be | 9 | | paid by the
collector to the county treasurer of the county in | 10 | | which the property is
situated for deposit into a special | 11 | | fund. It
shall be the duty of the county treasurer, as trustee | 12 | | of the fund, to
invest the principal and income of the fund | 13 | | from time to time, if not
immediately required for payments | 14 | | under this Section, in investments as are
authorized by | 15 | | Sections 3-10009 and 3-11002 of the Counties Code. The fund
| 16 | | shall be held to pay interest and costs
by the county treasurer | 17 | | as trustee of the fund. No payment shall be made
from the fund | 18 | | except by order of the court declaring a sale in error under
| 19 | | Section 21-310, 22-35, or 22-50
or by declaration of the | 20 | | county collector under subsection (c) of Section
21-310.
Any | 21 | | moneys accumulated in the fund by the county treasurer in | 22 | | excess of (i) $100,000 in counties with 250,000 or less | 23 | | inhabitants or (ii) $500,000 in counties with more than | 24 | | 250,000 inhabitants shall be paid each year prior to the | 25 | | commencement of the
annual tax sale, first to satisfy
any | 26 | | existing unpaid judgments entered pursuant to Section 21-295, |
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| 1 | | and any funds
remaining thereafter shall be paid to the | 2 | | general fund of the county.
| 3 | | (Source: P.A. 100-1070, eff. 1-1-19 .)
| 4 | | (35 ILCS 200/22-10)
| 5 | | Sec. 22-10. Notice of expiration of period of redemption. | 6 | | A purchaser or assignee shall not be entitled to a tax deed to | 7 | | the
property sold unless, not less than 3 months nor more than | 8 | | 6 months prior to
the expiration of the period of redemption, | 9 | | he or she gives notice of the
sale and the date of expiration | 10 | | of the period of redemption to the
owners, occupants, and | 11 | | parties interested in the property, including any
mortgagee of | 12 | | record, as provided below. The purchaser or assignee shall | 13 | | deliver the notice of the expiration of the period of | 14 | | redemption to the sheriff of the county in which the property | 15 | | is located not less than 5 months prior to the expiration of | 16 | | the period of redemption. If service is made by the coroner or | 17 | | by a person who is licensed or registered as a private | 18 | | detective under the Private Detective, Private Alarm, Private | 19 | | Security, Fingerprint Vendor, and Locksmith Act of 2004 under | 20 | | the circumstances described in Section 22-15 for service by | 21 | | those persons, then the notice of expiration of the period of | 22 | | redemption shall be delivered to the coroner or the private | 23 | | detective, as applicable, instead of to the sheriff. the
| 24 | | The Notice to be given to the parties shall be in at least | 25 | | 10-point 10 point
type in the following form completely filled |
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| 1 | | in:
| 2 | | TAX DEED NO. .................... FILED ....................
| 3 | | TAKE NOTICE
| 4 | | County of ...............................................
| 5 | | Date Premises Sold ......................................
| 6 | | Certificate No. ........................................
| 7 | | Sold for General Taxes of (year) ........................
| 8 | | Sold for Special Assessment of (Municipality)
| 9 | | and special assessment number ...........................
| 10 | | Warrant No. ................ Inst. No. .................
| 11 | | THIS PROPERTY HAS BEEN SOLD FOR
| 12 | | DELINQUENT TAXES
| 13 | | Property located at .........................................
| 14 | | Legal Description or Property Index No. .....................
| 15 | | .............................................................
| 16 | | .............................................................
| 17 | | This notice is to advise you that the above property has
| 18 | | been sold for delinquent taxes and that the period of
| 19 | | redemption from the sale will expire on .....................
| 20 | | .............................................................
| 21 | | The amount to redeem is subject to increase at 6 month | 22 | | intervals from
the date of sale and may be further increased if | 23 | | the purchaser at the tax
sale or his or her assignee pays any | 24 | | subsequently accruing taxes or special
assessments to redeem | 25 | | the property from subsequent forfeitures or tax sales.
Check | 26 | | with the county clerk as to the exact amount you owe before |
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| 1 | | redeeming.
| 2 | | This notice is also to advise you that a petition has been | 3 | | filed for
a tax deed which will transfer title and the right to | 4 | | possession of this
property if redemption is not made on or | 5 | | before ......................................................
| 6 | | This matter is set for hearing in the Circuit Court of this | 7 | | county in
...., Illinois on .....
| 8 | | You may be present at this hearing but your right to redeem | 9 | | will
already have expired at that time.
| 10 | | YOU ARE URGED TO REDEEM IMMEDIATELY
| 11 | | TO PREVENT LOSS OF PROPERTY
| 12 | | Redemption can be made at any time on or before .... by | 13 | | applying to
the County Clerk of ...., County, Illinois at the | 14 | | Office of the County Clerk in
...., Illinois.
| 15 | | For further information contact the County Clerk
| 16 | | ADDRESS:....................
| 17 | | TELEPHONE:..................
| 18 | | ..........................
| 19 | | Purchaser or Assignee.
| 20 | | Dated (insert date).
| 21 | | In counties with 3,000,000 or more inhabitants, the notice | 22 | | shall also state
the address, room number , and time at which | 23 | | the matter is set for hearing.
| 24 | | The changes to this Section made by Public Act 97-557 |
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| 1 | | apply only to matters in which a petition for tax deed is filed | 2 | | on or after July 1, 2012 (the effective date of Public Act | 3 | | 97-557).
| 4 | | The changes to this Section made by Public Act 102-1003 | 5 | | this amendatory Act of the 102nd General Assembly apply to | 6 | | matters in which a petition for tax deed is filed on or after | 7 | | May 27, 2022 ( the effective date of Public Act 102-1003) this | 8 | | amendatory Act of the 102nd General Assembly . Failure of any | 9 | | party or any public official to comply with the changes made to | 10 | | this Section by Public Act 102-528 does not invalidate any tax | 11 | | deed issued prior to May 27, 2022 ( the effective date of Public | 12 | | Act 102-1003) this amendatory Act of the 102nd General | 13 | | Assembly . | 14 | | (Source: P.A. 102-528, eff. 1-1-22; 102-813, eff. 5-13-22; | 15 | | 102-1003, eff. 5-27-22; revised 9-1-22.)
| 16 | | (35 ILCS 200/22-35)
| 17 | | Sec. 22-35. Reimbursement of a county or municipality | 18 | | before issuance of tax deed.
Except in any proceeding in which | 19 | | the tax purchaser is a county acting as a
trustee for
taxing | 20 | | districts as provided in Section 21-90,
an order for the | 21 | | issuance of a tax deed under this Code shall not be entered
| 22 | | affecting the title to or interest in any property in which a | 23 | | county, city, village or
incorporated town has an interest | 24 | | under the police and welfare power by
advancements made from | 25 | | public funds, until the purchaser or assignee makes
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| 1 | | reimbursement to the county, city, village or incorporated | 2 | | town of the money so
advanced or the county, city, village, or | 3 | | town waives its lien on the property for
the money so advanced. | 4 | | However, in lieu of reimbursement or waiver, the
purchaser or
| 5 | | his or her
assignee may make application for and the court | 6 | | shall order that the tax
purchase be set aside as a sale in | 7 | | error , except in cases where the tax purchaser holds a lien | 8 | | that shall remain on the property until paid with 5% interest | 9 | | per year as provided in Section 21-240 . A sale in error may not | 10 | | be granted under this Section if the lien has been released, | 11 | | satisfied, discharged, or waived. A filing or appearance fee | 12 | | shall not
be required of a county, city, village or | 13 | | incorporated town seeking to enforce its
claim under this | 14 | | Section in a tax deed proceeding.
| 15 | | (Source: P.A. 101-379, eff. 1-1-20 .)
| 16 | | (35 ILCS 200/22-50)
| 17 | | Sec. 22-50. Denial of deed. If the court refuses to enter | 18 | | an order
directing the county clerk to execute and deliver the | 19 | | tax deed, because of the
failure of the purchaser to fulfill | 20 | | any of the above provisions, and if the
purchaser, or his or | 21 | | her assignee has made a bona fide attempt to comply with
the | 22 | | statutory requirements for the issuance of the tax deed, then | 23 | | upon
application of the owner of the certificate of purchase | 24 | | the court shall declare
the sale to be a sale in error , unless | 25 | | the purchaser failed to comply with any of the above |
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| 1 | | provisions for obtaining a tax deed because the purchaser made | 2 | | a reasonably avoidable error .
| 3 | | (Source: P.A. 92-224, eff. 1-1-02.)".
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