Full Text of SB0586 100th General Assembly
SB0586eng 100TH GENERAL ASSEMBLY |
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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 | | Sections 21-310, 21-315, and 21-385 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, |
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| 1 | | board of review,
board of appeals, or other county official | 2 | | has made an error (other than an
error of judgment as to
| 3 | | the value of any property),
| 4 | | (5.5) the owner of the homestead property had tendered | 5 | | timely and full
payment to the county collector that the | 6 | | owner reasonably believed was due and
owing on the | 7 | | homestead property, and the county collector did not apply | 8 | | the
payment to the homestead property; provided that this | 9 | | provision applies only to
homeowners, not their agents or | 10 | | third-party payors,
| 11 | | (6) prior to the tax sale a voluntary or involuntary | 12 | | petition has been
filed by or against the legal or | 13 | | beneficial owner of the property requesting
relief under | 14 | | the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
| 15 | | (7) the property is owned by the United States, the | 16 | | State of Illinois,
a municipality, or a
taxing district, or | 17 | | (8) the owner of the property is a reservist or | 18 | | guardsperson who is granted an extension of his or her due | 19 | | date under Sections 21-15, 21-20, and 21-25 of this Act.
| 20 | | (b) When, upon application of the owner of the certificate | 21 | | of purchase
only, it appears to the satisfaction of the court | 22 | | which ordered the property
sold that any of the following | 23 | | subsections are applicable, the court shall
declare the sale to | 24 | | be a sale in error:
| 25 | | (1) A voluntary or involuntary petition under the | 26 | | provisions of 11
U.S.C. Chapter 7, 11, 12, or 13 has been |
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| 1 | | filed
subsequent to the tax sale and prior to the issuance | 2 | | of the tax deed.
| 3 | | (2) The improvements upon the property sold have been | 4 | | substantially
destroyed or rendered uninhabitable or | 5 | | otherwise unfit for occupancy subsequent
to the tax sale | 6 | | and prior to the issuance of the tax deed ; however, if the | 7 | | court declares a sale in error under this paragraph (2), | 8 | | the court may order assignment of the certificate of | 9 | | purchase to the county collector or the delinquent county | 10 | | tax agent, if requested by the county collector .
| 11 | | (3) There is an interest held by the United States in | 12 | | the property sold
which could not be extinguished by the | 13 | | tax deed.
| 14 | | (4) The real property contains a hazardous
substance, | 15 | | hazardous waste, or underground storage tank that would
| 16 | | require cleanup or other removal under any federal,
State, | 17 | | or local law, ordinance, or regulation, only if the tax | 18 | | purchaser
purchased the property without actual knowledge | 19 | | of the hazardous substance,
hazardous waste, or | 20 | | underground storage tank. This paragraph (4) applies only | 21 | | if the owner of the
certificate of purchase has made | 22 | | application for a sale in error at any time
before the | 23 | | issuance of a tax deed.
| 24 | | Whenever a court declares a sale in error under this | 25 | | subsection (b), the court shall promptly notify the county | 26 | | collector in writing. |
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| 1 | | (c) When the county collector discovers, prior to the | 2 | | expiration of the period of redemption, that a tax sale
should | 3 | | not have occurred for one or more of the reasons set forth in
| 4 | | subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, | 5 | | the county
collector shall notify the last known owner of the | 6 | | certificate of purchase by
certified and regular mail, or other | 7 | | means reasonably calculated to provide
actual notice, that the | 8 | | county collector intends to declare an administrative
sale in | 9 | | error and of the reasons therefor, including documentation | 10 | | sufficient
to establish the reason why the sale should not have | 11 | | occurred. The owner of the
certificate of purchase may object | 12 | | in writing within 28 days after the date of
the mailing by the | 13 | | county collector. If an objection is filed, the county
| 14 | | collector shall not administratively declare a sale in error, | 15 | | but may apply to
the circuit court for a sale in error as | 16 | | provided in subsection (a) of this
Section. Thirty days | 17 | | following the receipt of notice by the last known owner of
the | 18 | | certificate of purchase, or within a reasonable time | 19 | | thereafter, the county
collector shall make a written | 20 | | declaration, based upon clear and convincing
evidence, that the | 21 | | taxes were sold in error and shall deliver a copy thereof to
| 22 | | the county clerk within 30 days after the date the declaration | 23 | | is made for
entry in the tax judgment, sale, redemption, and | 24 | | forfeiture record pursuant to
subsection (d) of this Section. | 25 | | The county collector shall promptly notify the
last known owner | 26 | | of the certificate of purchase of the declaration by regular
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| 1 | | mail and shall promptly pay the amount of the tax sale, | 2 | | together with interest
and costs as provided in Section 21-315, | 3 | | upon surrender of the original
certificate of purchase.
| 4 | | (d) If a sale is declared to be a sale in error, the county
| 5 | | clerk shall make entry in the tax judgment, sale, redemption | 6 | | and
forfeiture record, that the property was erroneously sold, | 7 | | and the county
collector shall, on demand of the owner of the | 8 | | certificate of purchase, refund
the amount paid, pay any | 9 | | interest and costs as may be ordered under Sections
21-315 | 10 | | through 21-335, and cancel the certificate so far as it relates | 11 | | to the
property. The county collector shall deduct from the | 12 | | accounts of the
appropriate taxing bodies their pro rata | 13 | | amounts paid. Alternatively, for sales in error declared under | 14 | | subsection (b)(2), the county collector may request the circuit | 15 | | court to direct the county clerk to assign the tax certificate | 16 | | to the county collector or the county delinquent tax agent | 17 | | without charging a fee for the assignment. The owner of the | 18 | | certificate of purchase shall receive all statutory refunds and | 19 | | payments. The county collector shall deduct costs and payments | 20 | | in the same manner as if a sale in error had occurred. The | 21 | | county delinquent tax agent shall extend the redemption period | 22 | | by 24 months in order to proceed with filing a petition for tax | 23 | | deed.
| 24 | | (Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06; | 25 | | 95-331, eff. 8-21-07.)
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| 1 | | (35 ILCS 200/21-315)
| 2 | | Sec. 21-315. Refund of costs; interest on refund.
| 3 | | (a) If a sale in
error under Section 21-310, 22-35, or | 4 | | 22-50
is declared, the amount refunded
shall also include all | 5 | | costs paid by the owner of the
certificate of
purchase or his | 6 | | or her assignor which were posted to the tax judgment, sale,
| 7 | | redemption and forfeiture record.
| 8 | | (b) In those cases which arise solely under grounds set | 9 | | forth in Section
21-310, the amount refunded shall also include
| 10 | | interest
on the refund of the amount paid
for the certificate | 11 | | of purchase, except as otherwise provided in this Section.
| 12 | | Interest shall be awarded and paid to the tax purchaser at the | 13 | | rate of 1% per
month from the date of sale to the date of | 14 | | payment, or in an amount equivalent
to the penalty interest | 15 | | which would be recovered on a redemption at the time of
payment | 16 | | pursuant to the order for sale in error, whichever is less. | 17 | | Interest
shall not be paid when the sale in error is made | 18 | | pursuant to paragraph (2) or
(4) of
subsection (b) of Section | 19 | | 21-310, Section 22-35, Section 22-50, any ground
not enumerated | 20 | | in Section 21-310, or in any other case where the court
| 21 | | determines that the
tax purchaser had actual knowledge prior to | 22 | | the sale of the grounds on which
the sale is declared to be | 23 | | erroneous.
| 24 | | (c) When the county collector files a petition for sale in | 25 | | error under
Section 21-310 and mails a notice thereof by
| 26 | | certified or registered mail to the
last known owner of the |
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| 1 | | certificate of purchase, any interest otherwise
payable under | 2 | | this Section shall cease to accrue as of the date the
petition | 3 | | is filed, unless the tax purchaser agrees to an order for sale | 4 | | in
error upon the presentation of the petition to the court. | 5 | | Notices under
this subsection may be mailed to the last known | 6 | | owner of the
certificate of
purchase. When the
owner of the | 7 | | certificate of purchase contests the collector's petition
| 8 | | solely to determine whether the grounds for sale in error are | 9 | | such as to
support a claim for interest, the court may direct | 10 | | that the principal
amount of the refund be paid to the owner of | 11 | | the certificate of purchase
forthwith. If the court thereafter | 12 | | determines that a claim for interest
lies under this Section, | 13 | | it shall award such interest from the date of sale
to the date | 14 | | the principal amount was paid. If the owner of the certificate | 15 | | of purchase files an objection to the county collector's | 16 | | intention to declare an administrative sale in error, as | 17 | | provided under subsection (c) of Section 21-310, and, | 18 | | thereafter, the county collector elects to apply to the circuit | 19 | | court for a sale in error under subsection (a) of Section | 20 | | 21-310, then, if the circuit court grants the county | 21 | | collector's application for a sale in error, the court may not | 22 | | award interest to the owner of the certificate of purchase for | 23 | | the period after the mailing date of the county collector's | 24 | | notice of intention to declare an administrative sale in error.
| 25 | | (d) When a petition for a sale in error is filed under | 26 | | subsection (b) of Section 21-310, the petition shall be filed |
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| 1 | | under the order in which the court previously ordered the taxes | 2 | | sold. The certificate holder shall not be required to pay a | 3 | | filing fee under this Section. | 4 | | (Source: P.A. 94-662, eff. 1-1-06.)
| 5 | | (35 ILCS 200/21-385)
| 6 | | Sec. 21-385. Extension of period of redemption. The
| 7 | | purchaser or his or her assignee of property
sold for | 8 | | nonpayment of general taxes or special assessments may extend
| 9 | | the period of redemption at any time before the expiration of | 10 | | the
original period of redemption, or thereafter prior to the | 11 | | expiration of any
extended period of redemption, for a period | 12 | | which will expire not later than 3
years from the date of sale, | 13 | | by filing with the county clerk of
the county in which the | 14 | | property is located a written notice to that
effect describing | 15 | | the property, stating the date of the sale and
specifying the | 16 | | extended period of redemption. If prior to the
expiration of | 17 | | the period of redemption or extended period of redemption
a | 18 | | petition for tax deed has been filed under Section
22-30, upon | 19 | | application of the petitioner, the court shall allow the
| 20 | | purchaser or his or her assignee to extend the period of | 21 | | redemption after
expiration of the original period or any | 22 | | extended period of redemption,
provided that any extension | 23 | | allowed will expire not later than 3 years from the
date of | 24 | | sale , unless the certificate has been assigned to the county | 25 | | collector or the county delinquent tax agent by the court which |
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| 1 | | ordered the property sold, in which case the period of | 2 | | redemption shall be extended for 24 months . If the period of | 3 | | redemption is extended, the purchaser or his or
her assignee | 4 | | must give the notices provided for in Section 22-10 at the
| 5 | | specified times prior to the expiration of the extended period | 6 | | of redemption by
causing a sheriff (or if he or she is | 7 | | disqualified, a coroner) of the county in
which the property, | 8 | | or any part thereof, is located to serve the notices as
| 9 | | provided in Sections 22-15 and 22-20.
The notices may also be | 10 | | served as provided in Sections 22-15 and 22-20 by a
special | 11 | | process server appointed by the court under Section 22-15.
| 12 | | (Source: P.A. 91-209, eff. 1-1-00; 91-554, eff. 8-14-99.)
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