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90_HB1121eng
35 ILCS 200/21-260
Amends the Property Tax Code. Provides that mineral
rights offered for sale at a scavenger tax sale and not sold
or confirmed after being offered for sale for 10 consecutive
years shall revert to the surface owner. Requires the county
treasurer to deliver a notice of the reversion to the party
in whose name the taxes on the mineral rights are last
assessed. Provides that the Department shall prescribe forms
or provide suitable forms for the notification. Effective
immediately.
LRB9003803KDsbA
HB1121 Engrossed LRB9003803KDsbA
1 AN ACT to amend the Property Tax Code by changing Section
2 21-260.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Property Tax Code is amended by changing
6 Section 21-260 as follows:
7 (35 ILCS 200/21-260)
8 Sec. 21-260. Collector's scavenger sale. Upon the
9 county collector's application under Section 21-145, to be
10 known as the Scavenger Sale Application, the Court shall
11 enter judgment for the general taxes, special taxes, special
12 assessments, interest, penalties and costs as are included in
13 the advertisement and appear to be due thereon after allowing
14 an opportunity to object and a hearing upon the objections as
15 provided in Section 21-175, and order those properties sold
16 by the County Collector at public sale to the highest bidder
17 for cash, notwithstanding the bid may be less than the full
18 amount of taxes, special taxes, special assessments,
19 interest, penalties and costs for which judgment has been
20 entered.
21 (a) Conducting the sale - Bidding. All properties
22 shall be offered for sale in consecutive order as they appear
23 in the delinquent list. The minimum bid for any property
24 shall be $250 or one-half of the tax if the total liability
25 is less than $500. The successful bidder shall immediately
26 pay the amount of minimum bid to the County Collector in
27 cash, by certified or cashier's check, or by money order. If
28 the bid exceeds the minimum bid, the successful bidder shall
29 pay the balance of the bid to the county collector in cash,
30 by certified or cashier's check, or by money order by the
31 close of the next business day. If the minimum bid is not
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1 paid at the time of sale or if the balance is not paid by the
2 close of the next business day, then the sale is void and the
3 minimum bid, if paid, is forfeited to the county general
4 fund. In that event, the property shall be reoffered for
5 sale within 30 days of the last offering of property in
6 regular order. The collector shall make available to the
7 public a list of all properties to be included in any
8 reoffering due to the voiding of the original sale. The
9 collector is not required to serve or publish any other
10 notice of the reoffering of those properties. In the event
11 that any of the properties are not sold upon reoffering, or
12 are sold for less than the amount of the original voided
13 sale, the original bidder who failed to pay the bid amount
14 shall remain liable for the unpaid balance of the bid in an
15 action under Section 21-240. Liability shall not be reduced
16 where the bidder upon reoffering also fails to pay the bid
17 amount, and in that event both bidders shall remain liable
18 for the unpaid balance of their respective bids. A sale of
19 properties under this Section shall not be final until
20 confirmed by the court.
21 (b) Confirmation of sales. The county collector shall
22 file his or her report of sale in the court within 30 days of
23 the date of sale of each property. No notice of the county
24 collector's application to confirm the sales shall be
25 required except as prescribed by rule of the court. Upon
26 confirmation, except in cases where the sale becomes void
27 under Section 22-85, or in cases where the order of
28 confirmation is vacated by the court, a sale under this
29 Section shall extinguish the in rem lien of the general
30 taxes, special taxes and special assessments for which
31 judgment has been entered and a redemption shall not revive
32 the lien. Confirmation of the sale shall in no event affect
33 the owner's personal liability to pay the taxes, interest and
34 penalties as provided in this Code or prevent institution of
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1 a proceeding under Section 21-440 to collect any amount that
2 may remain due after the sale.
3 (c) Issuance of tax sale certificates. Upon confirmation
4 of the sale the County Clerk and the County Collector shall
5 issue to the purchaser a certificate of purchase in the form
6 prescribed by Section 21-250 as near as may be. A
7 certificate of purchase shall not be issued to any person who
8 is ineligible to bid at the sale or to receive a certificate
9 of purchase under Section 21-265.
10 (d) Scavenger Tax Judgment, Sale and Redemption Record -
11 Sale of parcels not sold. The county collector shall prepare
12 a Scavenger Tax Judgment, Sale and Redemption Record. The
13 county clerk shall write or stamp on the scavenger tax
14 judgment, sale, forfeiture and redemption record opposite the
15 description of any property offered for sale and not sold, or
16 not confirmed for any reason, the words "offered but not
17 sold". The properties which are offered for sale under this
18 Section and not sold or not confirmed shall be offered for
19 sale annually thereafter in the manner provided in this
20 Section until sold, except in the case of mineral rights,
21 which after 10 consecutive years of being offered for sale
22 under this Section and not sold or confirmed shall revert to
23 the surface owner. At any time between annual sales the
24 County Collector may advertise for sale any properties
25 subject to sale under judgments for sale previously entered
26 under this Section and not executed for any reason. The
27 advertisement and sale shall be regulated by the provisions
28 of this Code as far as applicable.
29 (d-5) Reversion of mineral rights. In the case of
30 mineral rights that revert to the surface owner after they
31 were not purchased or confirmed in 10 consecutive years of
32 being offered for sale as provided in subsection (d), the
33 county treasurer shall deliver a notice of the reversion to
34 the party in whose name the taxes on the mineral rights are
HB1121 Engrossed -4- LRB9003803KDsbA
1 last assessed as shown by the most recent tax collector's
2 warrant books and the county collector or county recorder,
3 whichever is applicable. The Department shall prescribe
4 forms or provide suitable forms needed to carry out the
5 provisions of this subsection.
6 (e) Proceeding to tax deed. The owner of the certificate
7 of purchase shall give notice as required by Sections 22-5
8 through 22-30, and may extend the period of redemption as
9 provided by Section 21-385. At any time within 5 months prior
10 to expiration of the period of redemption from a sale under
11 this Code, the owner of a certificate of purchase may file a
12 petition and may obtain a tax deed under Sections 22-30
13 through 22-55. All proceedings for the issuance of a tax deed
14 and all tax deeds for properties sold under this Section
15 shall be subject to Sections 22-30 through 22-55. Deeds
16 issued under this Section are subject to Section 22-70. This
17 Section shall be liberally construed to that the deeds
18 provided for in this Section convey merchantable title.
19 (f) Redemptions from scavenger sales. Redemptions may be
20 made from sales under this Section in the same manner and
21 upon the same terms and conditions as redemptions from sales
22 made under the County Collector's annual application for
23 judgment and order of sale, except that in lieu of penalty
24 the person redeeming shall pay interest as follows if the
25 sale occurs before September 9, 1993:
26 (1) If redeemed within the first 2 months from the
27 date of the sale, 3% per month or portion thereof upon
28 the amount for which the property was sold;
29 (2) If redeemed between 2 and 6 months from the
30 date of the sale, 12% of the amount for which the
31 property was sold;
32 (3) If redeemed between 6 and 12 months from the
33 date of the sale, 24% of the amount for which the
34 property was sold;
HB1121 Engrossed -5- LRB9003803KDsbA
1 (4) If redeemed between 12 and 18 months from the
2 date of the sale, 36% of the amount for which the
3 property was sold;
4 (5) If redeemed between 18 and 24 months from the
5 date of the sale, 48% of the amount for which the
6 property was sold;
7 (6) If redeemed after 24 months from the date of
8 sale, the 48% herein provided together with interest at
9 6% per year thereafter.
10 If the sale occurs on or after September 9, 1993, the
11 person redeeming shall pay interest on that part of the
12 amount for which the property was sold equal to or less than
13 the full amount of delinquent taxes, special assessments,
14 penalties, interest, and costs, included in the judgment and
15 order of sale as follows:
16 (1) If redeemed within the first 2 months from the
17 date of the sale, 3% per month upon the amount of taxes,
18 special assessments, penalties, interest, and costs due
19 for each of the first 2 months, or fraction thereof.
20 (2) If redeemed at any time between 2 and 6 months
21 from the date of the sale, 12% of the amount of taxes,
22 special assessments, penalties, interest, and costs due.
23 (3) If redeemed at any time between 6 and 12 months
24 from the date of the sale, 24% of the amount of taxes,
25 special assessments, penalties, interest, and costs due.
26 (4) If redeemed at any time between 12 and 18
27 months from the date of the sale, 36% of the amount of
28 taxes, special assessments, penalties, interest, and
29 costs due.
30 (5) If redeemed at any time between 18 and 24
31 months from the date of the sale, 48% of the amount of
32 taxes, special assessments, penalties, interest, and
33 costs due.
34 (6) If redeemed after 24 months from the date of
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1 sale, the 48% provided for the 24 months together with
2 interest at 6% per annum thereafter on the amount of
3 taxes, special assessments, penalties, interest, and
4 costs due.
5 The person redeeming shall not be required to pay any
6 interest on any part of the amount for which the property was
7 sold that exceeds the full amount of delinquent taxes,
8 special assessments, penalties, interest, and costs included
9 in the judgment and order of sale.
10 Notwithstanding any other provision of this Section,
11 except for owner-occupied single family residential units
12 which are condominium units, cooperative units or dwellings,
13 the amount required to be paid for redemption shall also
14 include an amount equal to all delinquent taxes on the
15 property which taxes were delinquent at the time of sale.
16 The delinquent taxes shall be apportioned by the county
17 collector among the taxing districts in which the property is
18 situated in accordance with law. In the event that all moneys
19 received from any sale held under this Section exceed an
20 amount equal to all delinquent taxes on the property sold,
21 which taxes were delinquent at the time of sale, together
22 with all publication and other costs associated with the
23 sale, then, upon redemption, the County Collector and the
24 County Clerk shall apply the excess amount to the cost of
25 redemption.
26 (g) Bidding by county or other taxing districts. Any
27 taxing district may bid at a scavenger sale. The county
28 board of the county in which properties offered for sale
29 under this Section are located may bid as trustee for all
30 taxing districts having an interest in the taxes for the
31 nonpayment of which the parcels are offered. The County shall
32 apply on the bid the unpaid taxes due upon the property and
33 no cash need be paid. The County or other taxing district
34 acquiring a tax sale certificate shall take all steps
HB1121 Engrossed -7- LRB9003803KDsbA
1 necessary to acquire title to the property and may manage and
2 operate the property so acquired.
3 When a county, or other taxing district within the
4 county, is a petitioner for a tax deed, no filing fee shall
5 be required on the petition. The county as a tax creditor and
6 as trustee for other tax creditors, or other taxing district
7 within the county shall not be required to allege and prove
8 that all taxes and special assessments which become due and
9 payable after the sale to the county have been paid. The
10 county shall not be required to pay the subsequently accruing
11 taxes or special assessments at any time. Upon the written
12 request of the county board or its designee, the county
13 collector shall not offer the property for sale at any tax
14 sale subsequent to the sale of the property to the county
15 under this Section. The lien of taxes and special assessments
16 which become due and payable after a sale to a county shall
17 merge in the fee title of the county, or other taxing
18 district, on the issuance of a deed. The County may sell the
19 properties so acquired, or the certificate of purchase
20 thereto, and the proceeds of the sale shall be distributed to
21 the taxing districts in proportion to their respective
22 interests therein. The presiding officer of the county board,
23 with the advice and consent of the County Board, may appoint
24 some officer or person to attend scavenger sales and bid on
25 its behalf.
26 (h) Miscellaneous provisions. In the event that the
27 tract of land or lot sold at any such sale is not redeemed
28 within the time permitted by law and a tax deed is issued,
29 all moneys that may be received from the sale of properties
30 in excess of the delinquent taxes, together with all
31 publication and other costs associated with the sale, shall,
32 upon petition of any interested party to the court that
33 issued the tax deed, be distributed by the County Collector
34 pursuant to order of the court among the persons having legal
HB1121 Engrossed -8- LRB9003803KDsbA
1 or equitable interests in the property according to the fair
2 value of their interests in the tract or lot. Section 21-415
3 does not apply to properties sold under this Section. Appeals
4 may be taken from the orders and judgments entered under this
5 Section as in other civil cases. The remedy herein provided
6 is in addition to other remedies for the collection of
7 delinquent taxes.
8 (Source: P.A. 88-455; incorporates 88-482; 88-670, eff.
9 12-2-94.)
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.