State of Illinois
92nd General Assembly

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[ Senate Amendment 009 ]




 1                    AMENDMENT TO SENATE BILL 1666

 2        AMENDMENT NO.     .  Amend Senate Bill 1666, AS  AMENDED,
 3    by  replacing  everything  after the enacting clause with the
 4    following:

 5        "Section 5.  The Property Tax Code is amended by changing
 6    Sections 15-10, 21-310, 21-315, 21-320, 21-325,  21-330,  and
 7    21-335 and by adding Section 21-251 as follows:

 8        (35 ILCS 200/15-10)
 9        Sec.     15-10.  Exempt    property;    procedures    for
10    certification.  All property  granted  an  exemption  by  the
11    Department  pursuant  to the requirements of Section 15-5 and
12    described  in  the  Sections  following  Section  15-30   and
13    preceding  Section  16-5,  to  the extent therein limited, is
14    exempt from  taxation.  In  order  to  maintain  that  exempt
15    status,  the  titleholder  or  the  owner  of  the beneficial
16    interest of any property that is exempt must  file  with  the
17    chief  county  assessment officer, on or before January 31 of
18    each year (May 31 in the case of property exempted by Section
19    15-170), an affidavit stating  whether  there  has  been  any
20    change  in the ownership or use of the property or the status
21    of  the  owner-resident,  or  that  a  disabled  veteran  who
22    qualifies under Section 15-165 owned and used the property as
                            -2-            LRB9210095SMdvam07
 1    of January 1 of that year.  The nature of any change shall be
 2    stated in the  affidavit.    Failure  to  file  an  affidavit
 3    shall,   in   the   discretion  of  the  assessment  officer,
 4    constitute cause to terminate the exemption of that property,
 5    notwithstanding any other provision of this Code. Owners of 5
 6    or more such exempt parcels within a county may file a single
 7    annual affidavit in lieu of an  affidavit  for  each  parcel.
 8    The  assessment  officer,  upon  request,  shall  furnish  an
 9    affidavit  form  to  the owners, in which the owner may state
10    whether there has been any change in the ownership or use  of
11    the property or status of the owner or resident as of January
12    1  of  that year. The owner of 5 or more exempt parcels shall
13    list all the properties giving the same information for  each
14    parcel as required of owners who file individual affidavits.
15        However,   titleholders   or  owners  of  the  beneficial
16    interest in any property exempted under any of the  following
17    provisions  are not required to submit an annual filing under
18    this Section:
19             (1)  Section 15-45 (burial grounds) in  counties  of
20        less   than   3,000,000   inhabitants   and  owned  by  a
21        not-for-profit organization.
22             (2)  Section 15-40.
23             (3)  Section 15-50 (United States property).
24             (4)  As is otherwise provided in Sections 15-170 and
25        15-175 (senior and general homestead exemptions).
26    If there is a change in use  or  ownership,  however,  notice
27    must be filed pursuant to Section 15-20.
28        Annual  application  for  homestead  exemptions  shall be
29    filed  as  provided  in  Section  15-170   (senior   citizens
30    homestead   exemption),   Section   15-172  (senior  citizens
31    assessment freeze homestead exemption),  and  Section  15-175
32    (general homestead exemption), respectively.
33    (Source: P.A. 92-333, eff. 8-10-01.)
                            -3-            LRB9210095SMdvam07
 1        (35 ILCS 200/21-251 new)
 2        Sec.  21-251.  Registry  of  owners  of  certificates  of
 3    purchase.
 4        (a)  The  county  clerk  of  each county shall create and
 5    maintain a  registry  system  that  permanently  records  the
 6    names,   addresses,   and  telephone  numbers  of  owners  or
 7    assignees of certificates of purchase issued pursuant to  any
 8    tax  sale conducted under this Code. The registry may consist
 9    of a single record or a combination of records maintained  in
10    paper  or  electronic  form and may include copies of records
11    kept by the county treasurer for other purposes,  all  to  be
12    used  as  the county clerk deems appropriate to carry out the
13    purposes of this Section. The  information  in  the  registry
14    shall be made available to the public.
15        (b)  The  county  clerk  of  each county is authorized to
16    promulgate  reasonable  rules,  procedures,  and  forms   for
17    purposes  of  creating  and  maintaining the registry and for
18    access to the registry information by members of the  public.
19    In  counties with 3,000,000 or more inhabitants, any owner of
20    a certificate of purchase pursuant to  assignment  may  elect
21    whether  to  register  that  assignment  as  provided in this
22    Section, but all owners of certificates of purchase shall  be
23    subject  to the provisions of subsection (d) of this Section.
24    In counties with less than 3,000,000 inhabitants, the  county
25    clerk   shall   provide   by  rule  whether  registration  of
26    assignments of certificates of purchase shall be elective  or
27    mandatory.
28        (c)  The  owner  of a certificate of purchase pursuant to
29    assignment, in  order  to  register  that  assignment,  shall
30    submit  to  the  county  clerk the owner's name, address, and
31    telephone number in accordance with  any  rules,  procedures,
32    and forms promulgated by the clerk. Any registered owner of a
33    certificate  of  purchase  may update the registration at any
34    time without charge by submitting to  the  county  clerk  any
                            -4-            LRB9210095SMdvam07
 1    lawful change of name, address, or telephone number.
 2        (d)  If  notice  is  required to be given to the owner of
 3    the  certificate  of  purchase  in  any  proceeding,  whether
 4    judicial or administrative, affecting a  tax  sale  conducted
 5    under  any provision of this Code, the notice may be directed
 6    to the most recent  owner  of  the  certificate  of  purchase
 7    appearing  in the county clerk's registry under this Section.
 8    Any notice that has been directed as provided in this Section
 9    shall be conclusively presumed to be properly directed to the
10    owner of the certificate of purchase for all purposes related
11    to the proceeding in which the notice is given. No  objection
12    or  assertion by any assignee of a certificate of purchase in
13    any proceeding shall be heard on grounds that a notice to the
14    tax purchaser was misdirected, unless that assignee's current
15    and lawful name, address, and telephone number were submitted
16    to the county clerk's registry at the time of the  notice  in
17    question.
18        (e)  The  county clerk may assess an automation fee of no
19    more than $10 to be paid by the owner of the  certificate  of
20    purchase  for  each  assignment  of  the  certificate that is
21    registered under this Section. The fee shall be collected  in
22    the  same manner as other fees and costs and shall be held by
23    the county clerk in a fund for purposes of automating his  or
24    her office. The fee provided for under this Section shall not
25    be  chargeable to the cost of redemption under Section 21-355
26    nor shall it be posted under Section 21-360 of this Code.

27        (35 ILCS 200/21-310)
28        Sec. 21-310. Sales in error.
29        (a)  When, upon application of the county collector,  the
30    owner of the certificate of purchase, or a municipality which
31    owns  or  has  owned the property ordered sold, it appears to
32    the satisfaction of the court which ordered the property sold
33    that any of the following  subsections  are  applicable,  the
                            -5-            LRB9210095SMdvam07
 1    court shall declare the sale to be a sale in error:
 2             (1)  the  property  was  not subject to taxation, or
 3        all or any part of the lien of taxes sold has become null
 4        and void  pursuant  to  Section  21-95  or  unenforceable
 5        pursuant   to   subsection   (c)  of  Section  18-250  or
 6        subsection (b) of Section 22-40,
 7             (2)  the taxes or special assessments had been  paid
 8        prior to the sale of the property,
 9             (3)  there is a double assessment,
10             (4)  the description is void for uncertainty,
11             (5)  the  assessor, chief county assessment officer,
12        board of  review,  board  of  appeals,  or  other  county
13        official  has  made  an  error  (other  than  an error of
14        judgment as to the value of any property),
15             (5.5)  the  owner  of  the  homestead  property  had
16        tendered timely and full payment to the county  collector
17        that  the  owner reasonably believed was due and owing on
18        the homestead property, and the county collector did  not
19        apply  the  payment  to  the homestead property; provided
20        that this provision applies only to homeowners, not their
21        agents or third-party payors,
22             (6)  prior  to  the  tax   sale   a   voluntary   or
23        involuntary  petition  has  been  filed by or against the
24        legal or beneficial  owner  of  the  property  requesting
25        relief  under  the provisions of 11 U.S.C. Chapter 7, 11,
26        12, or 13, or
27             (7)  the property is owned by the United States, the
28        State of Illinois, a municipality, or a taxing district.
29        (b)  When,  upon  application  of  the   owner   of   the
30    certificate  of purchase only, it appears to the satisfaction
31    of the court which ordered the property sold that any of  the
32    following subsections are applicable, the court shall declare
33    the sale to be a sale in error:
34             (1)  A  voluntary  or involuntary petition under the
                            -6-            LRB9210095SMdvam07
 1        provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
 2        filed subsequent  to  the  tax  sale  and  prior  to  the
 3        issuance of the tax deed.
 4             (2)  The  improvements  upon  the property sold have
 5        been substantially destroyed or rendered uninhabitable or
 6        otherwise unfit for occupancy subsequent to the tax  sale
 7        and prior to the issuance of the tax deed.
 8             (3)  There  is an interest held by the United States
 9        in the property sold which could not be  extinguished  by
10        the tax deed.
11             (4)  The   real   property   contains   a  hazardous
12        substance, hazardous waste, or underground  storage  tank
13        that  would  require  cleanup  or other removal under any
14        federal, State, or local law, ordinance,  or  regulation,
15        only  if the tax purchaser purchased the property without
16        actual knowledge of the  hazardous  substance,  hazardous
17        waste,  or  underground storage tank.  This paragraph (4)
18        applies only to tax purchases occurring after January  1,
19        1990  and if the owner of the certificate of purchase has
20        made application for a sale in error at any  time  before
21        the issuance of a tax deed.
22        (c)  When the county collector discovers, within one year
23    after  the  date  of sale if taxes were sold at an annual tax
24    sale or within 180 days after the date of sale if taxes  were
25    sold at a scavenger tax sale, that a tax sale should not have
26    occurred  for  one  or  more  of  the  reasons  set  forth in
27    subdivision  (a)(1),  (a)(2),  (a)(6),  or  (a)(7)  of   this
28    Section,  the  county  collector  shall notify the last known
29    owner of the certificate of purchase by certified and regular
30    mail, or other means reasonably calculated to provide  actual
31    notice,  that  the  county  collector  intends  to declare an
32    administrative sale in error and  of  the  reasons  therefor,
33    including  documentation  sufficient  to establish the reason
34    why the sale should not  have  occurred.  The  owner  of  the
                            -7-            LRB9210095SMdvam07
 1    certificate  of purchase may object in writing within 28 days
 2    after the date of the mailing by the county collector. If  an
 3    objection   is   filed,   the   county  collector  shall  not
 4    administratively declare a sale in error, but  may  apply  to
 5    the  circuit  court  for  a  sale  in  error  as  provided in
 6    subsection (a) of this Section.  Thirty  days  following  the
 7    receipt  of notice by the last known owner of the certificate
 8    of purchase, or within  a  reasonable  time  thereafter,  the
 9    county collector shall make a written declaration, based upon
10    clear  and  convincing  evidence, that the taxes were sold in
11    error and shall deliver a copy thereof to  the  county  clerk
12    within  30  days  after  the date the declaration is made for
13    entry in the tax judgment, sale, redemption,  and  forfeiture
14    record pursuant to subsection (d) of this Section. The county
15    collector  shall  promptly notify the last known owner of the
16    certificate of purchase of the declaration  by  regular  mail
17    and  shall  promptly pay the amount of the tax sale, together
18    with interest and costs as provided in Section  21-315,  upon
19    surrender of the original certificate of purchase.
20        (d)  If  a  sale  is  declared to be a sale in error, the
21    county clerk shall make entry  in  the  tax  judgment,  sale,
22    redemption  and  forfeiture  record,  that  the  property was
23    erroneously sold, and the county collector shall,  on  demand
24    of  the  owner  of  the  certificate  of purchase, refund the
25    amount paid, pay any interest and costs  as  may  be  ordered
26    under   Sections   21-315  through  21-335,  and  cancel  the
27    certificate so far as it relates to the property. The  county
28    collector  shall  deduct from the accounts of the appropriate
29    taxing bodies their pro rata amounts paid.
30    (Source: P.A. 91-177,  eff.  1-1-00;  91-357,  eff.  7-29-99;
31    91-924, eff. 1-1-01; 92-224, eff. 1-1-02.)

32        (35 ILCS 200/21-315)
33        Sec. 21-315.  Refund of costs; interest on refund.
                            -8-            LRB9210095SMdvam07
 1        (a)  If  The  court  which  orders  a sale in error under
 2    Section 21-310, 22-35,  or  22-50  is  declared,  the  amount
 3    refunded  shall also include award a refund of all costs paid
 4    by the owner of the certificate of purchase  or  his  or  her
 5    assignor  which  were  posted  to  the  tax  judgment,  sale,
 6    redemption and forfeiture record.
 7        (b)  In  those cases which arise solely under grounds set
 8    forth in Section 21-310, the amount refunded court shall also
 9    include award interest on the refund of the amount  paid  for
10    the  certificate of purchase, except as otherwise provided in
11    this Section. Interest shall be awarded and paid to  the  tax
12    purchaser  at  the rate of 1% per month from the date of sale
13    to the date of payment, or in an  amount  equivalent  to  the
14    penalty  interest which would be recovered on a redemption at
15    the time of payment pursuant to the order for sale in  error,
16    whichever  is  less. Interest shall not be paid when the sale
17    in error  is  made  pursuant  to  paragraph  (2)  or  (4)  of
18    subsection  (b)  of  Section  21-310,  Section 22-35, Section
19    22-50, any ground not enumerated in Section 21-310, or in any
20    other case where the court determines that the tax  purchaser
21    had  actual  knowledge  prior  to  the sale of the grounds on
22    which the sale is declared to be erroneous.
23        (c)  When the county collector files a petition for  sale
24    in  error  under Section 21-310 and mails a notice thereof by
25    certified or registered mail to the last known owner  of  the
26    certificate of purchase tax purchaser, any interest otherwise
27    payable  under  this  Section shall cease to accrue as of the
28    date the petition is filed, unless the tax  purchaser  agrees
29    to  an  order  for sale in error upon the presentation of the
30    petition to the court.  Notices under this subsection may  be
31    mailed to the last known original owner of the certificate of
32    purchase,  or  to  the  latest  assignee, if known.  When the
33    owner of the certificate of purchase contests the collector's
34    petition solely to determine whether the grounds for sale  in
                            -9-            LRB9210095SMdvam07
 1    error  are such as to support a claim for interest, the court
 2    may direct that the principal amount of the refund be paid to
 3    the owner of the certificate of purchase  forthwith.  If  the
 4    court  thereafter  determines  that a claim for interest lies
 5    under this Section, it shall award  such  interest  from  the
 6    date of sale to the date the principal amount was paid.
 7    (Source: P.A. 92-224, eff. 1-1-02.)

 8        (35 ILCS 200/21-320)
 9        Sec.  21-320.   Refund  of  other taxes paid by holder of
10    certificate of purchase. If a sale  in  error  under  Section
11    21-310,  22-35,  or  22-50  is  declared, the amount refunded
12    shall also include The court which orders  a  sale  in  error
13    shall order the refund of all other taxes paid or redeemed by
14    the  owner  of  the  certificate  of  purchase  or his or her
15    assignor  subsequent to the tax sale, together with  interest
16    on  those  other  taxes  under  the same terms as interest is
17    otherwise payable under Section 21-315.  The  interest  under
18    this  subsection  shall  be  calculated at the rate of 1% per
19    month from the date the other taxes were paid  and  not  from
20    the  date  of  sale.   The  collector  shall  take  credit in
21    settlement of his or her accounts for the refund of the other
22    taxes as in other  cases  of  sale  in  error  under  Section
23    21-310.
24    (Source: P.A. 92-224, eff. 1-1-02.)

25        (35 ILCS 200/21-325)
26        Sec.  21-325.   Orders for Payment of interest - Counties
27    of 3,000,000 or more. In  counties  with  3,000,000  or  more
28    inhabitants,  all  payments orders for payment of interest or
29    costs under Sections 21-315 and 21-320 and subsection (c)  of
30    Section  21-310 shall be paid as provided in Sections 21-330,
31    21-335  and  21-340.   In  all  other  counties,  the  county
32    treasurer may determine in  his  or  her  discretion  whether
                            -10-           LRB9210095SMdvam07
 1    payment  of  interest  and costs shall be made as provided in
 2    Sections 21-330, 21-335 and 21-340.  In the  other  counties,
 3    where  the  treasurer  determines  not  to  make  payment  as
 4    provided  in  those  subsections, the treasurer shall pay any
 5    interest or costs awarded under this Section  pro  rata  from
 6    those  accounts  where  the  principal refund of the tax sale
 7    purchase price under Section 21-310 is taken.
 8    (Source: P.A. 86-286; 86-415; 87-669; 88-455.)

 9        (35 ILCS 200/21-330)
10        Sec. 21-330.  Fund for payment of interest.  In  counties
11    of under 3,000,000 inhabitants, the county board may impose a
12    fee  of  up  to  $60,  which  shall  be  paid  to  the county
13    collector, upon each person purchasing any property at a sale
14    held  under  this  Code,  prior  to  the  issuance   of   any
15    certificate  of purchase. Each person purchasing any property
16    at a sale held under this Code in a county with 3,000,000  or
17    more  inhabitants shall pay to the county collector, prior to
18    the issuance of any certificate of purchase, a  fee  of  $100
19    for  each  item  purchased.  That amount shall be included in
20    the price paid for the certificate of purchase and the amount
21    required to redeem under Section 21-355.
22        All sums of money received under this  Section  shall  be
23    paid  by  the collector to the county treasurer of the county
24    in which the property is situated for deposit into a  special
25    fund.   It  shall  be  the  duty  of the county treasurer, as
26    trustee of the fund, to invest the principal  and  income  of
27    the  fund  from time to time, if not immediately required for
28    payments under this Section, in investments as are authorized
29    by Sections 3-10009 and 3-11002 of the  Counties  Code.   The
30    fund  shall  be  held  to  pay  satisfy orders for payment of
31    interest and costs by obtained against the  county  treasurer
32    as  trustee  of  the  fund. No payment shall be made from the
33    fund except by order of the court declaring a sale  in  error
                            -11-           LRB9210095SMdvam07
 1    under  Section  21-310,  22-35, or 22-50 or by declaration of
 2    the county collector under subsection (c) of Section  21-310.
 3    Any moneys accumulated in the fund by the county treasurer in
 4    excess  of  $500,000  shall  be  paid  each year prior to the
 5    commencement of the annual tax sale,  first  to  satisfy  any
 6    existing unpaid judgments entered pursuant to Section 21-295,
 7    and  any  funds  remaining  thereafter  shall  be paid to the
 8    general fund of the county.
 9    (Source: P.A. 92-224, eff. 1-1-02.)

10        (35 ILCS 200/21-335)
11        Sec. 21-335.  Claims for interest and costs.  Any  person
12    claiming  interest  or  costs  under  Sections 21-315 through
13    21-330 shall include the claim in his  or  her  petition  for
14    sale  in  error  under  Section 21-310, 22-35, or 22-50.  Any
15    claim for interest or costs which  is  not  included  in  the
16    petition  is  waived.,  except   Interest  or  costs  may  be
17    awarded,  however,  to  the  extent permitted by this Section
18    upon a sale in error petition filed by the  county  collector
19    or municipality or upon a declaration by the county collector
20    pursuant   to  subsection  (c)  of  Section  21-310,  without
21    requiring a separate filing by the claimant.  Any  refund  of
22    order  for  interest  or  costs upon the petition for sale in
23    error or upon a declaration by the county collector  pursuant
24    to  subsection  (c) of Section 21-310 shall be paid by deemed
25    to be entered against the county treasurer as trustee of  the
26    fund  created  by  this  Section.  The fund shall be the sole
27    source for payment  and satisfaction of orders  for  interest
28    or  costs,  except  as otherwise provided in this subsection.
29    If the court determines that the fund has been  depleted  and
30    will  not be restored in time to pay an award with reasonable
31    promptness, the court may authorize the collector to pay  the
32    interest  portion  of  the award pro rata from those accounts
33    where the principal refund of the  tax  sale  purchase  price
                            -12-           LRB9210095SMdvam07
 1    under Section 21-310 is taken.
 2    (Source: P.A. 92-224, eff. 1-1-02.)

 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming law.".

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