Full Text of HB4804 100th General Assembly
HB4804 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4804 Introduced , by Rep. Joe Sosnowski SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Requires county collectors to adopt a single bidder rule sufficient to prohibit a tax purchaser from registering more than one related bidding entity. Provides that violation of a single bidder rule is a Class A misdemeanor for a first offense and a Class 4 felony for a second
or subsequent offense. Provides that a second
or subsequent offense shall operate as a bar to any future participation in tax sales within Illinois. Effective immediately.
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| | CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY | FISCAL NOTE ACT MAY APPLY | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 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 | | Section 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, on | 9 | | the day and in the place specified in the notice for the sale
| 10 | | of property for taxes, and shall, between 9:00 a.m. and 4:00 | 11 | | p.m., or later at
the collector's discretion, proceed to offer | 12 | | for sale, separately and in
consecutive order, all property in | 13 | | the list on which the taxes, special
assessments, interest or | 14 | | costs have not been paid. However, in any county with
3,000,000 | 15 | | or more inhabitants, the offer for sale shall be made between | 16 | | 8:00
a.m. and 8:00 p.m. The collector's office shall be kept | 17 | | open during all hours
in which the sale is in progress. The | 18 | | sale shall be continued from day to day,
until all property in | 19 | | the delinquent list has been offered for sale. However,
any | 20 | | city, village or incorporated town interested in the collection | 21 | | of any tax
or special assessment, may, in default of bidders, | 22 | | withdraw from collection the
special assessment levied against | 23 | | any property by the corporate authorities of
the city, village |
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| 1 | | or incorporated town. In case of a withdrawal, there shall be
| 2 | | no sale of that property on account of the delinquent special | 3 | | assessment
thereon.
| 4 | | Until January 1, 2013, in every sale of property pursuant | 5 | | to the provisions of this Code, the collector may employ any | 6 | | automated means that the collector deems appropriate. | 7 | | Beginning on January 1, 2013, either (i) the collector shall | 8 | | employ an automated bidding system that is programmed to accept | 9 | | the lowest redemption price bid by an eligible tax purchaser, | 10 | | subject to the penalty percentage limitation set forth in | 11 | | Section 21-215, or (ii) all tax sales shall be digitally | 12 | | recorded with video and audio. All bidders are required to | 13 | | personally attend the sale and, if automated means are used, | 14 | | all hardware and software used with respect to those automated | 15 | | means must be certified by the Department and re-certified by | 16 | | the Department every 5 years. If the tax sales are digitally | 17 | | recorded and no automated bidding system is used, then the | 18 | | recordings shall be maintained by the collector for a period of | 19 | | at least 3 years from the date of the tax sale. The changes | 20 | | made by this amendatory Act of the 94th General Assembly are | 21 | | declarative of existing law.
| 22 | | (b) For tax sales conducted on or after the effective date | 23 | | of this amendatory Act of the 100th General Assembly, each | 24 | | county collector shall adopt a single bidder rule. The single | 25 | | bidder rule shall prohibit a tax purchaser from registering | 26 | | more than one related bidding entity. Each bidding entity shall |
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| 1 | | register only once for the purpose of bidding on or purchasing | 2 | | tax lien certificates and may not maintain multiple | 3 | | registrations for the purpose of increasing the principal's | 4 | | likelihood of obtaining a successful bid on a parcel. A tax | 5 | | purchaser shall not have a financial, legal, or contractual | 6 | | relationship with any other bidder or bidding entity registered | 7 | | in the same tax sale. No bidder shall employ or participate in | 8 | | any post-sale certificate transfer strategy intended to | 9 | | circumvent the spirit of the single bidder rule. | 10 | | A person who knowingly violates a single bidder rule | 11 | | adopted by a county collector under this Section is guilty of a
| 12 | | Class A misdemeanor for a first offense and a Class 4 felony | 13 | | for a second
or subsequent offense. A person who is convicted | 14 | | of a second
or subsequent offense of knowingly violating a | 15 | | single bidder rule is prohibited from any future participation | 16 | | in tax sales under this Act within the State. | 17 | | For purposes of this subsection (b): | 18 | | "Related bidding entity" means any individual, | 19 | | corporation, partnership, joint venture, limited liability | 20 | | company, business organization, or other individual or | 21 | | commercial formation that has a shareholder, member, | 22 | | partner, principal, officer, general partner, or other | 23 | | person or entity having an ownership interest in common | 24 | | with, or a contractual relationship with, any other | 25 | | registered participant in the same annual tax sale. | 26 | | "Contractual, legal, or financial relationship" means |
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| 1 | | 2 or more individuals, corporate entities, shareholders, | 2 | | principals, officers, partnerships, general or limited | 3 | | partners, or other commercial ventures that have any type | 4 | | of ownership interest in common. | 5 | | It is prima facie evidence that a financial, legal, | 6 | | contractual, or bidding relationship exists when 2 or more | 7 | | bidding entities display any of the following | 8 | | characteristics: | 9 | | (1) they share a single registration or Taxpayer | 10 | | Identification Number (TIN); | 11 | | (2) they report earnings using a single tax return; | 12 | | (3) they reside or are domiciled at the same address; | 13 | | (4) they share common employees; | 14 | | (5) they display non-competitive bidding behavior; | 15 | | (6) they share a common pool of capital; or | 16 | | (7) they employ any bidding or registration strategy | 17 | | meant to gain an advantage when
determining the winner | 18 | | among tie bids. | 19 | | (Source: P.A. 97-557, eff. 7-1-12; 97-1125, eff. 8-28-12.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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