SB0508eng 92nd General Assembly


92_SB0508eng

 
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 1        AN ACT concerning taxes.

 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, 21-320, 21-330, 21-335, 22-45, and
 6    22-50 as follows:

 7        (35 ILCS 200/21-310)
 8        Sec. 21-310. Sales in error.
 9        (a)  When, upon application of the county collector,  the
10    owner of the certificate of purchase, or a municipality which
11    owns  or  has  owned the property ordered sold, it appears to
12    the satisfaction of the court which ordered the property sold
13    that any of the following  subsections  are  applicable,  the
14    court shall declare the sale to be a sale in error:
15             (1)  the  property  was  not subject to taxation, or
16        all or any part of the lien of taxes sold has become null
17        and void pursuant to Section 21-95,
18             (2)  the taxes or special assessments had been  paid
19        prior to the sale of the property,
20             (3)  there is a double assessment,
21             (4)  the description is void for uncertainty,
22             (5)  the  assessor, chief county assessment officer,
23        board of  review,  board  of  appeals,  or  other  county
24        official  has  made  an  error  (other  than  an error of
25        judgment as to the value of any property),
26             (5.5)  the  owner  of  the  homestead  property  had
27        tendered timely and full payment to the county  collector
28        that  the  owner reasonably believed was due and owing on
29        the homestead property, and the county collector did  not
30        apply  the  payment  to  the homestead property; provided
31        that this provision applies only to homeowners, not their
 
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 1        agents or third-party payors,
 2             (6)  prior  to  the  tax   sale   a   voluntary   or
 3        involuntary  petition  has  been  filed by or against the
 4        legal or beneficial  owner  of  the  property  requesting
 5        relief  under  the provisions of 11 U.S.C. Chapter 7, 11,
 6        12, or 13, or
 7             (7)  the property is owned by the State of Illinois,
 8        a municipality, or a taxing district. a municipality  has
 9        acquired  the  property  (i) through the foreclosure of a
10        lien authorized under Section  11-31-1  of  the  Illinois
11        Municipal  Code  or  through a judicial deed issued under
12        that  Section  or   (ii)   through   foreclosure   of   a
13        receivership certificate lien.
14        (b)  When,   upon   application   of  the  owner  of  the
15    certificate of purchase only, it appears to the  satisfaction
16    of  the court which ordered the property sold that any of the
17    following subsections are applicable, the court shall declare
18    the sale to be a sale in error:
19             (1)  A voluntary or involuntary petition  under  the
20        provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
21        filed  subsequent  to  the  tax  sale  and  prior  to the
22        issuance of the tax deed.
23             (2)  The improvements upon the  property  sold  have
24        been substantially destroyed or rendered uninhabitable or
25        otherwise  unfit for occupancy subsequent to the tax sale
26        and prior to the issuance of the tax deed.
27             (3)  There is an interest held by the United  States
28        in  the  property sold which could not be extinguished by
29        the tax deed.
30             (4)  The  real   property   contains   a   hazardous
31        substance,  hazardous  waste, or underground storage tank
32        that would require cleanup or  other  removal  under  any
33        federal,  State,  or local law, ordinance, or regulation,
34        only if the tax purchaser purchased the property  without
 
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 1        actual  knowledge  of  the hazardous substance, hazardous
 2        waste, or underground storage tank.  This  paragraph  (4)
 3        applies  only to tax purchases occurring after January 1,
 4        1990 and if the owner of the certificate of purchase  has
 5        made  application  for a sale in error at any time before
 6        the issuance of a tax deed.
 7        If a sale is declared to be a sale in error,  the  county
 8    clerk  shall make entry in the tax judgment, sale, redemption
 9    and forfeiture record,  that  the  property  was  erroneously
10    sold,  and the county collector shall, on demand of the owner
11    of the certificate of purchase, refund the amount  paid,  pay
12    any  interest  and  costs  as  may  be ordered under Sections
13    21-315 through 21-335, and cancel the certificate so  far  as
14    it relates to the property. The county collector shall deduct
15    from  the accounts of the appropriate taxing bodies their pro
16    rata amounts paid.
17    (Source: P.A. 91-177,  eff.  1-1-00;  91-357,  eff.  7-29-99;
18    91-924, eff. 1-1-01.)

19        (35 ILCS 200/21-315)
20        Sec. 21-315.  Refund of costs; interest on refund.
21        (a)  In  those cases which arise solely under grounds set
22    forth in Section 21-310 or 22-35, and in no other cases,  The
23    court  which  orders  a  sale  in error under Section 21-310,
24    22-35, or 22-50 shall also award a refund of interest on  the
25    refund  of  the  amount paid for the certificate of purchase,
26    together with all costs paid by the owner of the  certificate
27    of  purchase  or his or her assignor which were posted to the
28    tax judgment, sale, redemption and forfeiture record,  except
29    as  otherwise  provided in this Section.  Except as otherwise
30    provided in this Section, interest shall be awarded and  paid
31    at the rate of 1% per month from the date of sale to the date
32    of  payment  to the tax purchaser, or in an amount equivalent
33    to the  penalty  interest  which  would  be  recovered  on  a
 
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 1    redemption  at  the time of payment pursuant to the order for
 2    sale in error, whichever is less.
 3        (b)  In those cases which arise solely under grounds  set
 4    forth  in Section 21-310, the court shall also award interest
 5    on the refund of the  amount  paid  for  the  certificate  of
 6    purchase,  except  as  otherwise  provided  in  this Section.
 7    Interest shall be awarded and paid to the  tax  purchaser  at
 8    the rate of 1% per month from the date of sale to the date of
 9    payment,  or  in an amount equivalent to the penalty interest
10    which would be recovered on  a  redemption  at  the  time  of
11    payment pursuant to the order for sale in error, whichever is
12    less.  Interest on the refund to the owner of the certificate
13    of purchase shall not be paid (i) in any case  in  which  the
14    improvements  upon  the property sold have been substantially
15    destroyed or rendered uninhabitable or  otherwise  unfit  for
16    occupancy,  (ii)  when  the sale in error is made pursuant to
17    paragraph (2) or (4) of subsection  (b)  of  Section  21-310,
18    Section  22-35,  Section  22-50, any ground not enumerated in
19    Section 21-310, or (iii) in any case, after January 1,  1990,
20    in  which  the  real  estate  contains a hazardous substance,
21    hazardous waste,  or  underground  storage  tank  that  would
22    require  a 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 of
25    the  hazardous  substance,  hazardous  waste  or  underground
26    storage tank, or (iv) in  any  other  case  where  the  court
27    determines  that the tax purchaser had actual knowledge prior
28    to the sale of the grounds on which the sale is  declared  to
29    be erroneous.
30        (c)  When  the county collector files a petition for sale
31    in error under Section 21-310 and mails a notice  thereof  by
32    certified  or  registered  mail  to  the  tax  purchaser, any
33    interest otherwise payable under this Section shall cease  to
34    accrue  as  of the date the petition is filed, unless the tax
 
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 1    purchaser agrees to an order  for  sale  in  error  upon  the
 2    presentation  of  the  petition  to the court.  Notices under
 3    this subsection may be mailed to the original  owner  of  the
 4    certificate of purchase, or to the latest assignee, if known.
 5    When  the  owner  of the certificate of purchase contests the
 6    collector's petition solely to determine whether the  grounds
 7    for  sale  in  error  are  such  as  to  support  a claim for
 8    interest, the court may direct that the principal  amount  of
 9    the  refund  be  paid  to  the  owner  of  the certificate of
10    purchase forthwith. If the court thereafter determines that a
11    claim for interest lies under this Section,  it  shall  award
12    such interest from the date of sale to the date the principal
13    amount was paid.
14    (Source: P.A.  89-69, eff. 6-30-95; 90-655, eff. 7-30-98.)

15        (35 ILCS 200/21-320)
16        Sec.  21-320.   Refund  of  other taxes paid by holder of
17    certificate of purchase.  The court which orders  a  sale  in
18    error  shall  order  the  refund  of  all other taxes paid or
19    redeemed by the owner of the certificate of purchase  or  his
20    or  her  assignor   which  were  validly  posted  to  the tax
21    judgment, sale redemption and forfeiture record subsequent to
22    the tax sale, together with interest on those the other taxes
23    under the same terms as interest is otherwise  payable  under
24    Section  21-315.  The interest under this subsection shall be
25    calculated at the rate of 1% per  month  from  the  date  the
26    other  taxes  were  paid  and not from the date of sale.  The
27    collector shall take credit  in  settlement  of  his  or  her
28    accounts  for the refund of the other taxes as in other cases
29    of sale in error under Section 21-310.
30    (Source: P.A. 86-286; 86-415; 87-669; 88-455.)

31        (35 ILCS 200/21-330)
32        Sec. 21-330.  Fund for payment of interest.  In  counties
 
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 1    of under 3,000,000 inhabitants, the county board may impose a
 2    fee  of  up  to  $60,  which  shall  be  paid  to  the county
 3    collector, upon each person purchasing any property at a sale
 4    held  under  this  Code,  prior  to  the  issuance   of   any
 5    certificate  of purchase. Each person purchasing any property
 6    at a sale held under this Code in a county with 3,000,000  or
 7    more  inhabitants shall pay to the county collector, prior to
 8    the issuance of any certificate of purchase, a  fee  of  $100
 9    for  each  item  purchased.  That amount shall be included in
10    the price paid for the certificate of purchase and the amount
11    required to redeem under Section 21-355.
12        All sums of money received under this  Section  shall  be
13    paid  by  the collector to the county treasurer of the county
14    in which the property is situated for deposit into a  special
15    fund.   It  shall  be  the  duty  of the county treasurer, as
16    trustee of the fund, to invest the principal  and  income  of
17    the  fund  from time to time, if not immediately required for
18    payments under this Section, in investments as are authorized
19    by Sections 3-10009 and 3-11002 of the  Counties  Code.   The
20    fund  shall be held to satisfy orders for payment of interest
21    and costs obtained against the county treasurer as trustee of
22    the fund. No payment shall be made from the  fund  except  by
23    order  of  the  court declaring a sale in error under Section
24    21-310, 22-35, or 22-50. Any moneys accumulated in  the  fund
25    by  the  county treasurer in excess of $500,000 shall be paid
26    each year prior to the commencement of the annual  tax  sale,
27    first  to  satisfy  any  existing  unpaid  judgments  entered
28    pursuant   to   Section   21-295,  and  any  funds  remaining
29    thereafter shall be paid to the general fund of the county.
30    (Source: P.A. 88-455; 88-676,  eff.  12-14-94;  89-342,  eff.
31    1-1-96.)

32        (35 ILCS 200/21-335)
33        Sec.  21-335.   Claims for interest and costs. Any person
 
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 1    claiming interest or  costs  under  Sections  21-315  through
 2    21-330  shall  include  the  claim in his or her petition for
 3    sale in error under Section 21-310,  22-35,  or  22-50.   Any
 4    claim  for  interest  or  costs  which is not included in the
 5    petition is waived, except interest or costs may  be  awarded
 6    to  the extent permitted by this Section upon a sale in error
 7    petition filed by the county collector, without  requiring  a
 8    separate  filing  by the claimant.  Any order for interest or
 9    costs upon the petition for sale in error shall be deemed  to
10    be  entered  against  the  county treasurer as trustee of the
11    fund created by this Section.  The fund  shall  be  the  sole
12    source  for  payment  and satisfaction of orders for interest
13    or costs, except as otherwise provided  in  this  subsection.
14    If  the  court determines that the fund has been depleted and
15    will not be restored in time to pay an award with  reasonable
16    promptness,  the court may authorize the collector to pay the
17    interest portion of the award pro rata  from  those  accounts
18    where  the  principal  refund  of the tax sale purchase price
19    under Section 21-310 is taken.
20    (Source: P.A. 86-286; 86-415; 87-669; 88-455.)

21        (35 ILCS 200/22-45)
22        Sec. 22-45.  Tax deed incontestable unless order appealed
23    or relief petitioned. Tax deeds issued  under  Section  22-40
24    22-35  are  incontestable  except by appeal from the order of
25    the court directing the county clerk to issue the  tax  deed.
26    However,  relief  from  such  order  may be had under Section
27    2-1401 of the Code of Civil Procedure in the same manner  and
28    to  the  same  extent  as  may be had under that Section with
29    respect to final orders and judgments in  other  proceedings.
30    The  grounds for relief under Section 2-1401 shall be limited
31    to:
32        (1)  proof that the taxes were paid prior to sale;
33        (2)  proof that the property was exempt from taxation;
 
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 1        (3)  proof by clear and convincing evidence that the  tax
 2    deed  had  been  procured  by  fraud  or deception by the tax
 3    purchaser or his or her assignee; or
 4        (4)  proof by  a  person  or  party  holding  a  recorded
 5    ownership  or other recorded interest in the property that he
 6    or she was not named as a party in the publication notice  as
 7    set forth in Section 22-20, and that the tax purchaser or his
 8    or her assignee did not make a diligent inquiry and effort to
 9    serve  that  person  or  party  with  the notices required by
10    Sections 22-10 through 22-30.
11        In cases of the sale of homestead  property  in  counties
12    with  3,000,000  or  more inhabitants, a tax deed may also be
13    voided by the court upon petition,  filed  not  more  than  3
14    months  after an order for tax deed was entered, if the court
15    finds that the property was owner occupied on the  expiration
16    date  of the period of redemption and that the order for deed
17    was effectuated pursuant to a negligent or willful error made
18    by an employee of the county clerk or county collector during
19    the period of redemption from the sale  that  was  reasonably
20    relied   upon  to  the  detriment  of  any  person  having  a
21    redeemable interest. In such a case, the tax purchaser  shall
22    be  entitled  to  the  original amount required to redeem the
23    property plus interest from the sale as of the last  date  of
24    redemption  together  with costs actually expended subsequent
25    to the expiration of the period of redemption and  reasonable
26    attorney's  fees,  all  of  which shall be dispensed from the
27    fund created by Section 21-295. In those cases of error where
28    the court vacates the tax deed, it may award  the  petitioner
29    reasonable attorney's fees and court costs actually expended,
30    payable  from  that fund.  The court hearing a petition filed
31    under this Section or Section 2-1401 of  the  Code  of  Civil
32    Procedure  may  concurrently  hear  a  petition  filed  under
33    Section 21-295 and may grant relief under either Section.
34    (Source: P.A.   87-145;   87-669;  87-671;  87-895;  87-1189;
 
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 1    88-455; incorporates 88-451; 88-670, eff. 12-2-94.)

 2        (35 ILCS 200/22-50)
 3        Sec. 22-50. Denial of deed. If the court refuses to enter
 4    an order directing the county clerk to  execute  and  deliver
 5    the  tax  deed,  because  of  the failure of the purchaser to
 6    fulfill any of the above provisions, and if the purchaser, or
 7    his or her assignee has made a bona fide  attempt  to  comply
 8    with  the  statutory requirements for the issuance of the tax
 9    deed, then upon application of the owner of  the  certificate
10    of  purchase the court shall declare the sale to be a sale in
11    error it  shall  order  the  return  of  the  purchase  price
12    forthwith,  as  in  case  of  sales  in error, except that no
13    interest shall be paid on the purchase price.
14    (Source: P.A.  86-1158;  86-1431;  86-1475;  87-145;  87-669;
15    87-671; 87-895; 87-1189; 88-455.)

16        Section 90. Changes declarative of existing  law.  Except
17    for  the  amendment  to subsection (a) of Section 21-315, the
18    changes made by this  amendatory  Act  of  the  92nd  General
19    Assembly  are  declarative  of  existing law and shall not be
20    construed as a new enactment.
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State of Illinois 92nd General Assembly Legislation

State of Illinois
92^nd General Assembly
Legislation
