State of Illinois
92nd General Assembly

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SB1666 Engrossed                              LRB9210095SMdvA

 1        AN ACT in relation to 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 15-10, 21-310, 21-315, 21-320, 21-325,  21-330,  and
 6    21-335 and by adding Section 21-251 as follows:

 7        (35 ILCS 200/15-10)
 8        Sec.     15-10.  Exempt    property;    procedures    for
 9    certification.  All property  granted  an  exemption  by  the
10    Department  pursuant  to the requirements of Section 15-5 and
11    described  in  the  Sections  following  Section  15-30   and
12    preceding  Section  16-5,  to  the extent therein limited, is
13    exempt from  taxation.  In  order  to  maintain  that  exempt
14    status,  the  titleholder  or  the  owner  of  the beneficial
15    interest of any property that is exempt must  file  with  the
16    chief  county  assessment officer, on or before January 31 of
17    each year (May 31 in the case of property exempted by Section
18    15-170), an affidavit stating  whether  there  has  been  any
19    change  in the ownership or use of the property or the status
20    of  the  owner-resident,  or  that  a  disabled  veteran  who
21    qualifies under Section 15-165 owned and used the property as
22    of January 1 of that year.  The nature of any change shall be
23    stated in the  affidavit.    Failure  to  file  an  affidavit
24    shall,   in   the   discretion  of  the  assessment  officer,
25    constitute cause to terminate the exemption of that property,
26    notwithstanding any other provision of this Code. Owners of 5
27    or more such exempt parcels within a county may file a single
28    annual affidavit in lieu of an  affidavit  for  each  parcel.
29    The  assessment  officer,  upon  request,  shall  furnish  an
30    affidavit  form  to  the owners, in which the owner may state
31    whether there has been any change in the ownership or use  of
SB1666 Engrossed            -2-               LRB9210095SMdvA
 1    the property or status of the owner or resident as of January
 2    1  of  that year. The owner of 5 or more exempt parcels shall
 3    list all the properties giving the same information for  each
 4    parcel as required of owners who file individual affidavits.
 5        However,   titleholders   or  owners  of  the  beneficial
 6    interest in any property exempted under any of the  following
 7    provisions  are not required to submit an annual filing under
 8    this Section:
 9             (1)  Section 15-45 (burial grounds) in  counties  of
10        less   than   3,000,000   inhabitants   and  owned  by  a
11        not-for-profit organization.
12             (2)  Section 15-40.
13             (3)  Section 15-50 (United States property).
14             (4)  As is otherwise provided in Sections 15-170 and
15        15-175 (senior and general homestead exemptions).
16    If there is a change in use  or  ownership,  however,  notice
17    must be filed pursuant to Section 15-20.
18        Annual  application  for  homestead  exemptions  shall be
19    filed  as  provided  in  Section  15-170   (senior   citizens
20    homestead   exemption),   Section   15-172  (senior  citizens
21    assessment freeze homestead exemption),  and  Section  15-175
22    (general homestead exemption), respectively.
23    (Source: P.A. 92-333, eff. 8-10-01.)

24        (35 ILCS 200/21-251 new)
25        Sec.  21-251.  Registry  of  owners  of  certificates  of
26    purchase.
27        (a)  The  county  clerk  of  each county shall create and
28    maintain a  registry  system  that  permanently  records  the
29    names,   addresses,   and  telephone  numbers  of  owners  or
30    assignees of certificates of purchase issued pursuant to  any
31    tax  sale conducted under this Code. The registry may consist
32    of a single record or a combination of records maintained  in
33    paper  or  electronic  form and may include copies of records
SB1666 Engrossed            -3-               LRB9210095SMdvA
 1    kept by the county treasurer for other purposes,  all  to  be
 2    used  as  the county clerk deems appropriate to carry out the
 3    purposes of this Section. The  information  in  the  registry
 4    shall be made available to the public.
 5        (b)  The  county  clerk  of  each county is authorized to
 6    promulgate  reasonable  rules,  procedures,  and  forms   for
 7    purposes  of  creating  and  maintaining the registry and for
 8    access to the registry information by members of the  public.
 9    In  counties with 3,000,000 or more inhabitants, any owner of
10    a certificate of purchase pursuant to  assignment  may  elect
11    whether  to  register  that  assignment  as  provided in this
12    Section, but all owners of certificates of purchase shall  be
13    subject  to the provisions of subsection (d) of this Section.
14    In counties with less than 3,000,000 inhabitants, the  county
15    clerk   shall   provide   by  rule  whether  registration  of
16    assignments of certificates of purchase shall be elective  or
17    mandatory.
18        (c)  The  owner  of a certificate of purchase pursuant to
19    assignment, in  order  to  register  that  assignment,  shall
20    submit  to  the  county  clerk the owner's name, address, and
21    telephone number in accordance with  any  rules,  procedures,
22    and forms promulgated by the clerk. Any registered owner of a
23    certificate  of  purchase  may update the registration at any
24    time without charge by submitting to  the  county  clerk  any
25    lawful change of name, address, or telephone number.
26        (d)  If  notice  is  required to be given to the owner of
27    the  certificate  of  purchase  in  any  proceeding,  whether
28    judicial or administrative, affecting a  tax  sale  conducted
29    under  any provision of this Code, the notice may be directed
30    to the most recent  owner  of  the  certificate  of  purchase
31    appearing  in the county clerk's registry under this Section.
32    Any notice that has been directed as provided in this Section
33    shall be conclusively presumed to be properly directed to the
34    owner of the certificate of purchase for all purposes related
SB1666 Engrossed            -4-               LRB9210095SMdvA
 1    to the proceeding in which the notice is given. No  objection
 2    or  assertion by any assignee of a certificate of purchase in
 3    any proceeding shall be heard on grounds that a notice to the
 4    tax purchaser was misdirected, unless that assignee's current
 5    and lawful name, address, and telephone number were submitted
 6    to the county clerk's registry at the time of the  notice  in
 7    question.
 8        (e)  The  county clerk may assess an automation fee of no
 9    more than $10 to be paid by the owner of the  certificate  of
10    purchase  for  each  assignment  of  the  certificate that is
11    registered under this Section. The fee shall be collected  in
12    the  same manner as other fees and costs and shall be held by
13    the county clerk in a fund for purposes of automating his  or
14    her office. The fee provided for under this Section shall not
15    be  chargeable to the cost of redemption under Section 21-355
16    nor shall it be posted under Section 21-360 of this Code.

17        (35 ILCS 200/21-310)
18        Sec. 21-310. Sales in error.
19        (a)  When, upon application of the county collector,  the
20    owner of the certificate of purchase, or a municipality which
21    owns  or  has  owned the property ordered sold, it appears to
22    the satisfaction of the court which ordered the property sold
23    that any of the following  subsections  are  applicable,  the
24    court shall declare the sale to be a sale in error:
25             (1)  the  property  was  not subject to taxation, or
26        all or any part of the lien of taxes sold has become null
27        and void  pursuant  to  Section  21-95  or  unenforceable
28        pursuant   to   subsection   (c)  of  Section  18-250  or
29        subsection (b) of Section 22-40,
30             (2)  the taxes or special assessments had been  paid
31        prior to the sale of the property,
32             (3)  there is a double assessment,
33             (4)  the description is void for uncertainty,
SB1666 Engrossed            -5-               LRB9210095SMdvA
 1             (5)  the  assessor, chief county assessment officer,
 2        board of  review,  board  of  appeals,  or  other  county
 3        official  has  made  an  error  (other  than  an error of
 4        judgment as to the value of any property),
 5             (5.5)  the  owner  of  the  homestead  property  had
 6        tendered timely and full payment to the county  collector
 7        that  the  owner reasonably believed was due and owing on
 8        the homestead property, and the county collector did  not
 9        apply  the  payment  to  the homestead property; provided
10        that this provision applies only to homeowners, not their
11        agents or third-party payors,
12             (6)  prior  to  the  tax   sale   a   voluntary   or
13        involuntary  petition  has  been  filed by or against the
14        legal or beneficial  owner  of  the  property  requesting
15        relief  under  the provisions of 11 U.S.C. Chapter 7, 11,
16        12, or 13, or
17             (7)  the property is owned by the United States, the
18        State of Illinois, a municipality, or a taxing district.
19        (b)  When,  upon  application  of  the   owner   of   the
20    certificate  of purchase only, it appears to the satisfaction
21    of the court which ordered the property sold that any of  the
22    following subsections are applicable, the court shall declare
23    the sale to be a sale in error:
24             (1)  A  voluntary  or involuntary petition under the
25        provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
26        filed subsequent  to  the  tax  sale  and  prior  to  the
27        issuance of the tax deed.
28             (2)  The  improvements  upon  the property sold have
29        been substantially destroyed or rendered uninhabitable or
30        otherwise unfit for occupancy subsequent to the tax  sale
31        and prior to the issuance of the tax deed.
32             (3)  There  is an interest held by the United States
33        in the property sold which could not be  extinguished  by
34        the tax deed.
SB1666 Engrossed            -6-               LRB9210095SMdvA
 1             (4)  The   real   property   contains   a  hazardous
 2        substance, hazardous waste, or underground  storage  tank
 3        that  would  require  cleanup  or other removal under any
 4        federal, State, or local law, ordinance,  or  regulation,
 5        only  if the tax purchaser purchased the property without
 6        actual knowledge of the  hazardous  substance,  hazardous
 7        waste,  or  underground storage tank.  This paragraph (4)
 8        applies only to tax purchases occurring after January  1,
 9        1990  and if the owner of the certificate of purchase has
10        made application for a sale in error at any  time  before
11        the issuance of a tax deed.
12        (c)  When the county collector discovers, within one year
13    after  the  date  of sale if taxes were sold at an annual tax
14    sale or within 180 days after the date of sale if taxes  were
15    sold at a scavenger tax sale, that a tax sale should not have
16    occurred  for  one  or  more  of  the  reasons  set  forth in
17    subdivision  (a)(1),  (a)(2),  (a)(6),  or  (a)(7)  of   this
18    Section,  the  county  collector  shall notify the last known
19    owner of the certificate of purchase by certified and regular
20    mail, or other means reasonably calculated to provide  actual
21    notice,  that  the  county  collector  intends  to declare an
22    administrative sale in error and  of  the  reasons  therefor,
23    including  documentation  sufficient  to establish the reason
24    why the sale should not  have  occurred.  The  owner  of  the
25    certificate  of purchase may object in writing within 28 days
26    after the date of the mailing by the county collector. If  an
27    objection   is   filed,   the   county  collector  shall  not
28    administratively declare a sale in error, but  may  apply  to
29    the  circuit  court  for  a  sale  in  error  as  provided in
30    subsection (a) of this Section.  Thirty  days  following  the
31    receipt  of notice by the last known owner of the certificate
32    of purchase, or within  a  reasonable  time  thereafter,  the
33    county collector shall make a written declaration, based upon
34    clear  and  convincing  evidence, that the taxes were sold in
SB1666 Engrossed            -7-               LRB9210095SMdvA
 1    error and shall deliver a copy thereof to  the  county  clerk
 2    within  30  days  after  the date the declaration is made for
 3    entry in the tax judgment, sale, redemption,  and  forfeiture
 4    record pursuant to subsection (d) of this Section. The county
 5    collector  shall  promptly notify the last known owner of the
 6    certificate of purchase of the declaration  by  regular  mail
 7    and  shall  promptly pay the amount of the tax sale, together
 8    with interest and costs as provided in Section  21-315,  upon
 9    surrender of the original certificate of purchase.
10        (d)  If  a  sale  is  declared to be a sale in error, the
11    county clerk shall make entry  in  the  tax  judgment,  sale,
12    redemption  and  forfeiture  record,  that  the  property was
13    erroneously sold, and the county collector shall,  on  demand
14    of  the  owner  of  the  certificate  of purchase, refund the
15    amount paid, pay any interest and costs  as  may  be  ordered
16    under   Sections   21-315  through  21-335,  and  cancel  the
17    certificate so far as it relates to the property. The  county
18    collector  shall  deduct from the accounts of the appropriate
19    taxing bodies their pro rata amounts paid.
20    (Source: P.A. 91-177,  eff.  1-1-00;  91-357,  eff.  7-29-99;
21    91-924, eff. 1-1-01; 92-224, eff. 1-1-02.)

22        (35 ILCS 200/21-315)
23        Sec. 21-315.  Refund of costs; interest on refund.
24        (a)  If  The  court  which  orders  a sale in error under
25    Section 21-310, 22-35,  or  22-50  is  declared,  the  amount
26    refunded  shall also include award a refund of all costs paid
27    by the owner of the certificate of purchase  or  his  or  her
28    assignor  which  were  posted  to  the  tax  judgment,  sale,
29    redemption and forfeiture record.
30        (b)  In  those cases which arise solely under grounds set
31    forth in Section 21-310, the amount refunded court shall also
32    include award interest on the refund of the amount  paid  for
33    the  certificate of purchase, except as otherwise provided in
SB1666 Engrossed            -8-               LRB9210095SMdvA
 1    this Section. Interest shall be awarded and paid to  the  tax
 2    purchaser  at  the rate of 1% per month from the date of sale
 3    to the date of payment, or in an  amount  equivalent  to  the
 4    penalty  interest which would be recovered on a redemption at
 5    the time of payment pursuant to the order for sale in  error,
 6    whichever  is  less. Interest shall not be paid when the sale
 7    in error  is  made  pursuant  to  paragraph  (2)  or  (4)  of
 8    subsection  (b)  of  Section  21-310,  Section 22-35, Section
 9    22-50, any ground not enumerated in Section 21-310, or in any
10    other case where the court determines that the tax  purchaser
11    had  actual  knowledge  prior  to  the sale of the grounds on
12    which the sale is declared to be erroneous.
13        (c)  When the county collector files a petition for  sale
14    in  error  under Section 21-310 and mails a notice thereof by
15    certified or registered mail to the last known owner  of  the
16    certificate of purchase tax purchaser, any interest otherwise
17    payable  under  this  Section shall cease to accrue as of the
18    date the petition is filed, unless the tax  purchaser  agrees
19    to  an  order  for sale in error upon the presentation of the
20    petition to the court.  Notices under this subsection may  be
21    mailed to the last known original owner of the certificate of
22    purchase,  or  to  the  latest  assignee, if known.  When the
23    owner of the certificate of purchase contests the collector's
24    petition solely to determine whether the grounds for sale  in
25    error  are such as to support a claim for interest, the court
26    may direct that the principal amount of the refund be paid to
27    the owner of the certificate of purchase  forthwith.  If  the
28    court  thereafter  determines  that a claim for interest lies
29    under this Section, it shall award  such  interest  from  the
30    date of sale to the date the principal amount was paid.
31    (Source: P.A. 92-224, eff. 1-1-02.)

32        (35 ILCS 200/21-320)
33        Sec.  21-320.   Refund  of  other taxes paid by holder of
SB1666 Engrossed            -9-               LRB9210095SMdvA
 1    certificate of purchase. If a sale  in  error  under  Section
 2    21-310,  22-35,  or  22-50  is  declared, the amount refunded
 3    shall also include The court which orders  a  sale  in  error
 4    shall order the refund of all other taxes paid or redeemed by
 5    the  owner  of  the  certificate  of  purchase  or his or her
 6    assignor  subsequent to the tax sale, together with  interest
 7    on  those  other  taxes  under  the same terms as interest is
 8    otherwise payable under Section 21-315.  The  interest  under
 9    this  subsection  shall  be  calculated at the rate of 1% per
10    month from the date the other taxes were paid  and  not  from
11    the  date  of  sale.   The  collector  shall  take  credit in
12    settlement of his or her accounts for the refund of the other
13    taxes as in other  cases  of  sale  in  error  under  Section
14    21-310.
15    (Source: P.A. 92-224, eff. 1-1-02.)

16        (35 ILCS 200/21-325)
17        Sec.  21-325.   Orders for Payment of interest - Counties
18    of 3,000,000 or more. In  counties  with  3,000,000  or  more
19    inhabitants,  all  payments orders for payment of interest or
20    costs under Sections 21-315 and 21-320 and subsection (c)  of
21    Section  21-310 shall be paid as provided in Sections 21-330,
22    21-335  and  21-340.   In  all  other  counties,  the  county
23    treasurer may determine in  his  or  her  discretion  whether
24    payment  of  interest  and costs shall be made as provided in
25    Sections 21-330, 21-335 and 21-340.  In the  other  counties,
26    where  the  treasurer  determines  not  to  make  payment  as
27    provided  in  those  subsections, the treasurer shall pay any
28    interest or costs awarded under this Section  pro  rata  from
29    those  accounts  where  the  principal refund of the tax sale
30    purchase price under Section 21-310 is taken.
31    (Source: P.A. 86-286; 86-415; 87-669; 88-455.)

32        (35 ILCS 200/21-330)
SB1666 Engrossed            -10-              LRB9210095SMdvA
 1        Sec. 21-330.  Fund for payment of interest.  In  counties
 2    of under 3,000,000 inhabitants, the county board may impose a
 3    fee  of  up  to  $60,  which  shall  be  paid  to  the county
 4    collector, upon each person purchasing any property at a sale
 5    held  under  this  Code,  prior  to  the  issuance   of   any
 6    certificate  of purchase. Each person purchasing any property
 7    at a sale held under this Code in a county with 3,000,000  or
 8    more  inhabitants shall pay to the county collector, prior to
 9    the issuance of any certificate of purchase, a  fee  of  $100
10    for  each  item  purchased.  That amount shall be included in
11    the price paid for the certificate of purchase and the amount
12    required to redeem under Section 21-355.
13        All sums of money received under this  Section  shall  be
14    paid  by  the collector to the county treasurer of the county
15    in which the property is situated for deposit into a  special
16    fund.   It  shall  be  the  duty  of the county treasurer, as
17    trustee of the fund, to invest the principal  and  income  of
18    the  fund  from time to time, if not immediately required for
19    payments under this Section, in investments as are authorized
20    by Sections 3-10009 and 3-11002 of the  Counties  Code.   The
21    fund  shall  be  held  to  pay  satisfy orders for payment of
22    interest and costs by obtained against the  county  treasurer
23    as  trustee  of  the  fund. No payment shall be made from the
24    fund except by order of the court declaring a sale  in  error
25    under  Section  21-310,  22-35, or 22-50 or by declaration of
26    the county collector under subsection (c) of Section  21-310.
27    Any moneys accumulated in the fund by the county treasurer in
28    excess  of  $500,000  shall  be  paid  each year prior to the
29    commencement of the annual tax sale,  first  to  satisfy  any
30    existing unpaid judgments entered pursuant to Section 21-295,
31    and  any  funds  remaining  thereafter  shall  be paid to the
32    general fund of the county.
33    (Source: P.A. 92-224, eff. 1-1-02.)
SB1666 Engrossed            -11-              LRB9210095SMdvA
 1        (35 ILCS 200/21-335)
 2        Sec. 21-335.  Claims for interest and costs.  Any  person
 3    claiming  interest  or  costs  under  Sections 21-315 through
 4    21-330 shall include the claim in his  or  her  petition  for
 5    sale  in  error  under  Section 21-310, 22-35, or 22-50.  Any
 6    claim for interest or costs which  is  not  included  in  the
 7    petition  is  waived.,  except   Interest  or  costs  may  be
 8    awarded,  however,  to  the  extent permitted by this Section
 9    upon a sale in error petition filed by the  county  collector
10    or municipality or upon a declaration by the county collector
11    pursuant   to  subsection  (c)  of  Section  21-310,  without
12    requiring a separate filing by the claimant.  Any  refund  of
13    order  for  interest  or  costs upon the petition for sale in
14    error or upon a declaration by the county collector  pursuant
15    to  subsection  (c) of Section 21-310 shall be paid by deemed
16    to be entered against the county treasurer as trustee of  the
17    fund  created  by  this  Section.  The fund shall be the sole
18    source for payment  and satisfaction of orders  for  interest
19    or  costs,  except  as otherwise provided in this subsection.
20    If the court determines that the fund has been  depleted  and
21    will  not be restored in time to pay an award with reasonable
22    promptness, the court may authorize the collector to pay  the
23    interest  portion  of  the award pro rata from those accounts
24    where the principal refund of the  tax  sale  purchase  price
25    under Section 21-310 is taken.
26    (Source: P.A. 92-224, eff. 1-1-02.)

27        Section  99.  Effective date.  This Act takes effect upon
28    becoming law.

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