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91_SB0560
LRB9103144PTmb
1 AN ACT to amend the Property Tax Code by changing
2 Sections 21-295 and 21-305 and adding Section 21-397.
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 Sections 21-295 and 21-305 and adding Section 21-397 as
7 follows:
8 (35 ILCS 200/21-295)
9 Sec. 21-295. Creation of indemnity fund.
10 (a) In counties of less than 3,000,000 inhabitants, each
11 person purchasing any property at a sale under this Code
12 shall pay to the County Collector, prior to the issuance of
13 any certificate of purchase, a fee of $20 for each item
14 purchased in counties of less than 3,000,000 inhabitants and
15 $80 in counties of 3,000,000 or more inhabitants. In all
16 counties, A like sum shall be paid for each year that all or
17 a portion of an installment of subsequent taxes, or portion
18 thereof is are paid by the tax purchaser and posted to the
19 tax judgment, sale, redemption and forfeiture record where
20 the underlying certificate of purchase is recorded. The
21 amount paid prior to issuance of the certificate of purchase
22 shall be included in the purchase price of the property in
23 the certificate of purchase and all amounts paid under this
24 subsection shall be included in the amount required to redeem
25 under Section 21-355.
26 (a-5) In counties of 3,000,000 or more inhabitants, each
27 person purchasing taxes at an annual or forfeiture sale under
28 this Code shall pay to the County Collector a fee of 10% of
29 total taxes paid, including taxes paid pursuant to Section
30 21-240 of this Code. In these counties, each person
31 purchasing at a scavenger sale under this Code shall pay 10%
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1 of the total tax due or the bid amount, whichever is less.
2 In these counties, the certificate holder shall also pay to
3 the County Collector a fee of 10% of all subsequent taxes
4 paid and posted to the tax judgment, sale, redemption, and
5 forfeiture record where the underlying certificate of
6 purchase is recorded.
7 (b) The amount paid prior to issuance of the certificate
8 of purchase pursuant to subsection (a) or (a-5) shall be
9 included in the purchase price of the property in the
10 certificate of purchase and all amounts paid under this
11 Section shall be included in the amount required to redeem
12 under Section 21-355. Except as otherwise provided in
13 subsection (b) of Section 21-300, all money received under
14 subsection (a) or (a-5) shall be paid by the Collector to the
15 County Treasurer of the County in which the land is situated,
16 for the purpose of an indemnity fund. The County Treasurer,
17 as trustee of that fund, shall invest all of that fund,
18 principal and income, in his or her hands from time to time,
19 if not immediately required for payments of indemnities under
20 subsection (a) of Section 21-305, in investments permitted by
21 the Illinois State Board of Investment under Article 22A of
22 the Illinois Pension Code. The county collector shall report
23 annually to the Circuit Court on the condition and income of
24 the fund. The indemnity fund shall be held to satisfy
25 judgments obtained against the County Treasurer, as trustee
26 of the fund. No payment shall be made from the fund, except
27 upon a judgment of the court which ordered the issuance of a
28 tax deed.
29 (Source: P.A. 86-1028; 86-1431; 88-455.)
30 (35 ILCS 200/21-305)
31 Sec. 21-305. Payments from Indemnity Fund.
32 (a) Any owner of property sold under any provision of
33 this Code, who without fault or negligence of his or her own
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1 sustains loss or damage by reason of the issuance of a tax
2 deed under Sections 22-40 or 21-445 and who is barred or in
3 any way precluded from bringing an action for the recovery of
4 the property, or any owner of property containing 4 or less
5 dwelling units who resided thereon the last day of the period
6 of redemption who, in the opinion of the Court which issued
7 the tax deed order, is equitably entitled to just
8 compensation and who is barred or in any way precluded,
9 including, without limiting the generality of the foregoing,
10 by economic matters, from bringing an action for the recovery
11 of the property, has the right to indemnity for the loss or
12 damage sustained. Indemnity shall be limited to the fair cash
13 value of the property as of the date that the tax deed was
14 issued, less any mortgages or liens thereon. Except for
15 property containing 4 or fewer dwelling units on which an
16 owner resided on the last day of the period of redemption,
17 the indemnity judgment shall be reduced by the amount
18 necessary to redeem the property from the sale as of the last
19 day of the period of redemption and all other taxes and
20 penalties paid by the tax purchaser or his or her assignee
21 prior to the issuance of the tax deed.
22 (b) Any person claiming indemnity hereunder shall
23 petition the Court which ordered the tax deed to issue, shall
24 name the County Treasurer, as Trustee of the indemnity fund,
25 as defendant to the petition, and shall ask that judgment be
26 entered against the County Treasurer, as Trustee, in the
27 amount of the indemnity sought. The provisions of the Civil
28 Practice Law shall apply to proceedings under the petition,
29 except that neither the petitioner nor County Treasurer shall
30 be entitled to trial by jury on the issues presented in the
31 petition. The Court shall liberally construe this Section to
32 provide compensation wherever in the discretion of the Court
33 the equities warrant such action. The County Treasurer, as
34 Trustee of the indemnity fund, shall be subrogated to all
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1 parties in whose favor judgment may be rendered against him
2 or her, and by third party complaint may bring in as a
3 defendant a person, other than the tax deed grantee and its
4 successors in title, not a party to the action who is or may
5 be liable to him or her, as subrogee, for all or part of the
6 petitioner's claim against him or her.
7 (Source: P.A. 86-1028; 86-1431; 88-455.)
8 (35 ILCS 200/21-397 new)
9 Sec. 21-397. Notice of order setting aside redemption. In
10 counties with 3,000,000 or more inhabitants, if an order is
11 entered setting aside a redemption made within the time
12 allowed by law after a petition for tax deed has been filed,
13 the holder of the certificate of purchase shall mail a copy
14 of the order within 7 days of entry of the order by
15 registered or certified mail to the county clerk, to the
16 person who made the redemption, and to all parties entitled
17 to notice of the petition under Section 22-10, 22-15, or
18 22-25. The order shall provide that any person who was
19 entitled to redeem may pay to the county clerk within 30 days
20 of entry of the order the amount necessary to redeem the
21 property from the sale as of the last day of the period of
22 redemption. The county clerk shall make an entry in the
23 annual tax judgment, sale, redemption, and forfeiture record
24 reflecting the entry of the order and shall immediately upon
25 request provide an estimate of the amount required to effect
26 a redemption as of the last date of the period of redemption.
27 If the amount is paid within 30 days after entry of the
28 order, then the court shall enter an order declaring the
29 taxes to be paid as if the property had been redeemed within
30 the time required by law and dismissing the petition for tax
31 deed. A tax deed shall not be issued within the 30-day
32 period. Upon surrender of the certificate of purchase, the
33 county clerk shall distribute the funds deposited as if a
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1 timely redemption had been made. This Section applies to all
2 redemptions that occur after the effective date of this
3 amendatory Act of the 91st General Assembly.