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Public Act 094-0312
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| HB0551 Enrolled |
LRB094 06728 BDD 36827 b |
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AN ACT concerning taxes.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Property Tax Code is amended by changing
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Sections 21-15, 21-20, 21-25, 21-30, and 21-310 as follows:
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(35 ILCS 200/21-15)
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Sec. 21-15. General tax due dates; default by mortgage |
lender. Except as otherwise provided in this Section or Section |
21-40, all property
upon which the first installment of taxes |
remains unpaid on June 1 annually
shall be deemed delinquent |
and shall bear interest after June 1 at the rate of
1 1/2% per |
month or portion thereof. Except as otherwise provided in this
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Section or Section 21-40, all property upon which the second |
installment of
taxes remains due and unpaid on September 1, |
annually, shall be deemed
delinquent and shall bear interest |
after September 1 at the same interest rate.
All interest |
collected shall be paid into the general fund of the county.
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Payment received by mail and postmarked on or before the |
required due date is
not delinquent.
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Property not subject to the interest charge in Section |
9-260 or Section
9-265 shall also not
be subject to the |
interest charge imposed by this Section until such time as
the |
owner of the property receives actual notice of and is billed |
for the
principal amount of back taxes due and owing.
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If an Illinois resident who is a member of the Illinois |
National Guard
or a reserve component of the armed forces of |
the United States
and who has
an ownership interest in property |
taxed under this Act is called to active duty
for deployment |
outside the continental United States
and
is on active duty on |
the due date of any installment of taxes due under
this Act, he |
or she shall not be deemed delinquent in the payment of the
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installment and no interest shall accrue or be charged as a |
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penalty on the
installment until 180
30 days after that member |
returns from active duty. To be deemed not delinquent in the |
payment of an installment of taxes and any
interest
on that |
installment, the reservist or guardsperson must make a |
reasonable effort to notify the county clerk and the county |
collector of his or her activation to active duty and must |
notify the county clerk and the county collector
within 180
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days after his or her deactivation and provide verification of |
the date of his
or her
deactivation. An installment of property |
taxes on the property of any reservist
or
guardsperson who |
fails to provide timely notice and verification of
deactivation |
to the
county clerk is subject to interest and penalties as |
delinquent taxes under
this Code from
the date of deactivation.
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Notwithstanding any other provision of law, when any unpaid |
taxes become
delinquent under this Section through the fault of |
the mortgage lender,
(i) the
interest assessed under this |
Section for delinquent taxes shall be charged
against the |
mortgage lender and not the mortgagor and (ii) the mortgage
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lender shall pay the taxes, redeem the property and take all |
necessary steps to
remove any liens accruing against the |
property because of the delinquency.
In the event that more |
than
one entity meets the definition of mortgage lender with |
respect to any
mortgage, the interest shall be assessed against |
the mortgage lender
responsible for servicing the mortgage. |
Unpaid taxes shall be deemed
delinquent through the fault of |
the mortgage lender only if: (a) the
mortgage
lender has |
received all payments due the mortgage lender for the property |
being
taxed under the written terms of the mortgage or |
promissory note secured by
the mortgage, (b) the mortgage |
lender holds funds in escrow to pay the taxes,
and (c) the |
funds are sufficient to pay the taxes
after deducting all |
amounts reasonably anticipated to become due for all hazard
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insurance premiums and mortgage insurance premiums and any |
other assessments to
be paid from the escrow under the terms of |
the mortgage. For purposes of this
Section, an
amount
is |
reasonably anticipated to become due if it is payable within 12 |
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months from
the time of determining the sufficiency of funds |
held in escrow. Unpaid taxes
shall not be deemed delinquent |
through the fault of the mortgage lender if the
mortgage lender |
was directed in writing by the mortgagor not to pay the
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property taxes, or
if the failure to pay the taxes when due |
resulted from inadequate or inaccurate
parcel information |
provided by the mortgagor, a title or abstract company, or
by |
the agency or unit of government assessing the tax.
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(Source: P.A. 93-560, eff. 8-20-03.)
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(35 ILCS 200/21-20)
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Sec. 21-20. Due dates; accelerated billing in counties of |
less than
3,000,000. Except as otherwise provided in Section |
21-40, in counties with
less than 3,000,000 inhabitants in |
which the
accelerated method of billing and paying taxes |
provided for in Section 21-30 is
in effect, the estimated first |
installment of unpaid taxes shall be deemed
delinquent and |
shall bear interest after a date not later than June 1 annually
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as provided for in the ordinance or resolution of the county |
board adopting the
accelerated method, at the rate of 1 1/2% |
per month or portion thereof until
paid or forfeited. The |
second installment of unpaid taxes shall be deemed
delinquent |
and shall bear interest after August 1 annually at the same |
interest
rate until paid or forfeited. Payment received by mail |
and postmarked on or
before the required due date is not |
delinquent.
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If an Illinois resident who is a member of the Illinois |
National Guard
or a reserve component of the armed forces of |
the United States and
who has
an ownership interest in property |
taxed under this Act is called to active duty
for deployment |
outside the continental United States
and
is on active duty on |
the due date of any installment of taxes due under
this Act, he |
or she shall not be deemed delinquent in the payment of the
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installment and no interest shall accrue or be charged as a |
penalty on the
installment until 180
30 days after that member |
returns from
active
duty.
To be deemed not delinquent in the |
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payment of an installment of taxes and any
interest
on that |
installment, the reservist or guardsperson must make a |
reasonable effort to notify the county clerk and the county |
collector of his or her activation to active duty and must |
notify the county clerk and the county collector
within 180
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days after his or her deactivation and provide verification of |
the date of his
or her
deactivation. An installment of property |
taxes on the property of any reservist
or
guardsperson who |
fails to provide timely notice and verification of
deactivation |
to the
county clerk is subject to interest and penalties as |
delinquent taxes under
this Code from
the date of deactivation.
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(Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)
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(35 ILCS 200/21-25)
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Sec. 21-25. Due dates; accelerated billing in counties of |
3,000,000 or more.
Except as hereinafter provided and as |
provided in Section 21-40, in
counties with 3,000,000 or more |
inhabitants
in which the accelerated method of billing and |
paying taxes provided for in
Section 21-30 is in effect, the |
estimated first installment of unpaid taxes
shall be deemed |
delinquent and shall bear interest after March 1 at the rate of
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1 1/2% per month or portion thereof until paid or forfeited. |
The second
installment of unpaid taxes shall be deemed |
delinquent and shall bear interest
after August 1 annually at |
the same interest rate until paid or forfeited.
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If the county board elects by ordinance adopted prior to |
July 1 of a levy
year to provide for taxes to be paid in 4 |
installments, each installment for
that levy year and each |
subsequent year shall be deemed delinquent and shall
begin to |
bear interest 30 days after the date specified by the ordinance |
for
mailing bills, at the rate of 1 1/2% per month or portion |
thereof, until paid
or forfeited.
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Payment received by mail and postmarked on or before the |
required due date
is not delinquent.
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Taxes levied on homestead property in which a member of the |
National Guard or
reserves of the armed forces of the United |
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States who was called to active duty
on or after August 1, |
1990, and who has an ownership interest, shall not be
deemed |
delinquent and no interest shall accrue or be charged as a |
penalty on
such taxes due and payable in 1991 or 1992 until one |
year after that member
returns to civilian status.
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If an Illinois resident who is a member of the Illinois |
National Guard
or a reserve component of the armed forces of |
the United States
and who has an ownership interest in property |
taxed under this Act is
called to
active duty
for deployment |
outside the continental United States
and
is on active duty on |
the due date of any installment of taxes due under
this Act, he |
or she shall not be deemed delinquent in the payment of the
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installment and no interest shall accrue or be charged as a |
penalty on the
installment until 180
30 days after that member |
returns to
civilian
status.
To be deemed not delinquent in the |
payment of an installment of taxes and any
interest
on that |
installment, the reservist or guardsperson must make a |
reasonable effort to notify the county clerk and the county |
collector of his or her activation to active duty and must |
notify the county clerk and the county collector
within 180
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days after his or her deactivation and provide verification of |
the date of his
or her
deactivation. An installment of property |
taxes on the property of any reservist
or
guardsperson who |
fails to provide timely notice and verification of
deactivation |
to the
county clerk is subject to interest and penalties as |
delinquent taxes under
this Code from
the date of deactivation.
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(Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)
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(35 ILCS 200/21-30)
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Sec. 21-30. Accelerated billing. Except as provided in this |
Section, Section 9-260, and Section 21-40, in
counties with
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3,000,000 or more inhabitants, by January 31 annually, |
estimated tax bills
setting out the first installment of |
property taxes for the preceding year,
payable in that year, |
shall be prepared and mailed. The first installment of
taxes on |
the estimated tax bills shall be computed at 50% of the total |
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of each
tax bill for the preceding year.
If, prior to the |
preparation of the estimated tax bills, a certificate of
error |
has been either approved by a court on or before November 30 of |
the
preceding year or certified pursuant to Section 14-15 on or |
before November 30
of the preceding year, then the first |
installment of taxes on the estimated tax
bills shall be |
computed at 50% of the total taxes for the preceding year as
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corrected by the certificate of error.
By June 30 annually, |
actual tax bills shall
be prepared and mailed. These bills |
shall set out total taxes due and the
amount of estimated taxes |
billed in the first installment, and shall state
the balance of |
taxes due for that year as represented by the sum derived
from |
subtracting the amount of the first installment from the total |
taxes due
for that year.
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The county board may provide by ordinance, in counties with |
3,000,000 or more
inhabitants, for taxes to be paid in 4 |
installments. For the levy year for
which the ordinance is |
first effective and each subsequent year, estimated tax
bills |
setting out the first, second, and third installment of taxes |
for the
preceding year, payable in that year, shall be prepared |
and mailed not later
than the date specified by ordinance. Each |
installment on estimated tax bills
shall be computed at 25% of |
the total of each tax bill for the preceding year.
By the date |
specified in the ordinance, actual tax bills shall be prepared |
and
mailed. These bills shall set out total taxes due and the |
amount of estimated
taxes billed in the first, second, and |
third installments and shall state the
balance of taxes due for |
that year as represented by the sum derived from
subtracting |
the amount of the estimated installments from the total taxes |
due
for that year.
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The county board of any county with less than 3,000,000 |
inhabitants may, by
ordinance or resolution, adopt an |
accelerated method of tax billing.
The county board may |
subsequently rescind the ordinance or resolution and
revert to |
the method otherwise provided for in this Code.
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Taxes levied on homestead property in which a member of the |
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National Guard or
reserves of the armed forces of the United |
States who was called to active duty
on or after August 1, |
1990, and who has an ownership interest shall not be
deemed |
delinquent and no interest shall accrue or be charged as a |
penalty on
such taxes due and payable in 1991 or 1992 until one |
year after that member
returns to civilian status.
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(Source: P.A. 92-475, eff. 8-23-01; 93-560, eff. 8-20-03.)
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(35 ILCS 200/21-310)
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Sec. 21-310. Sales in error.
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(a) When, upon application of the county collector, the |
owner of the
certificate of purchase, or a
municipality which |
owns or has owned the property ordered sold, it appears to
the |
satisfaction of the court which ordered the property sold that |
any of the
following subsections are applicable, the court |
shall declare the sale to be a
sale in error:
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(1) the property was not subject to taxation, or all or |
any part of the
lien of taxes sold has become null and void |
pursuant to Section 21-95
or unenforceable pursuant to |
subsection (c) of Section 18-250 or subsection
(b) of |
Section 22-40,
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(2) the taxes or special assessments had been paid |
prior to the sale of
the property,
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(3) there is a double assessment,
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(4) the description is void for uncertainty,
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(5) the assessor, chief county assessment officer, |
board of review,
board of appeals, or other county official |
has made an error (other than an
error of judgment as to
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the value of any property),
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(5.5) the owner of the homestead property had tendered |
timely and full
payment to the county collector that the |
owner reasonably believed was due and
owing on the |
homestead property, and the county collector did not apply |
the
payment to the homestead property; provided that this |
provision applies only to
homeowners, not their agents or |
third-party payors,
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(6) prior to the tax sale a voluntary or involuntary |
petition has been
filed by or against the legal or |
beneficial owner of the property requesting
relief under |
the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
or
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(7) the property is owned by the United States, the |
State of Illinois,
a municipality, or a
taxing district, |
or . |
(8) the owner of the property is a reservist or |
guardsperson who is granted an extension of his or her due |
date under Sections 21-15, 21-20, and 21-25 of this Act.
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(b) When, upon application of the owner of the certificate |
of purchase
only, it appears to the satisfaction of the court |
which ordered the property
sold that any of the following |
subsections are applicable, the court shall
declare the sale to |
be a sale in error:
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(1) A voluntary or involuntary petition under the |
provisions of 11
U.S.C. Chapter 7, 11, 12, or 13 has been |
filed
subsequent to the tax sale and prior to the issuance |
of the tax deed.
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(2) The improvements upon the property sold have been |
substantially
destroyed or rendered uninhabitable or |
otherwise unfit for occupancy subsequent
to the tax sale |
and prior to the issuance of the tax deed.
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(3) There is an interest held by the United States in |
the property sold
which could not be extinguished by the |
tax deed.
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(4) The real property contains a hazardous
substance, |
hazardous waste, or underground storage tank that would
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require cleanup or other removal under any federal,
State, |
or local law, ordinance, or regulation, only if the tax |
purchaser
purchased the property without actual knowledge |
of the hazardous substance,
hazardous waste, or |
underground storage tank. This paragraph (4) applies only |
if the owner of the
certificate of purchase has made |
application for a sale in error at any time
before the |
issuance of a tax deed.
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(c) When the county collector discovers, within one year |
after the
date of sale if taxes were sold at an annual tax sale |
or within 180 days after
the date of sale if taxes were sold at |
a scavenger tax sale, that a tax sale
should not have occurred |
for one or more of the reasons set forth in
subdivision (a)(1), |
(a)(2), (a)(6), or (a)(7) of this Section, the county
collector |
shall notify the last known owner of the certificate of |
purchase by
certified and regular mail, or other means |
reasonably calculated to provide
actual notice, that the county |
collector intends to declare an administrative
sale in error |
and of the reasons therefor, including documentation |
sufficient
to establish the reason why the sale should not have |
occurred. The owner of the
certificate of purchase may object |
in writing within 28 days after the date of
the mailing by the |
county collector. If an objection is filed, the county
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collector shall not administratively declare a sale in error, |
but may apply to
the circuit court for a sale in error as |
provided in subsection (a) of this
Section. Thirty days |
following the receipt of notice by the last known owner of
the |
certificate of purchase, or within a reasonable time |
thereafter, the county
collector shall make a written |
declaration, based upon clear and convincing
evidence, that the |
taxes were sold in error and shall deliver a copy thereof to
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the county clerk within 30 days after the date the declaration |
is made for
entry in the tax judgment, sale, redemption, and |
forfeiture record pursuant to
subsection (d) of this Section. |
The county collector shall promptly notify the
last known owner |
of the certificate of purchase of the declaration by regular
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mail and shall promptly pay the amount of the tax sale, |
together with interest
and costs as provided in Section 21-315, |
upon surrender of the original
certificate of purchase.
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(d) If a sale is declared to be a sale in error, the county
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clerk shall make entry in the tax judgment, sale, redemption |
and
forfeiture record, that the property was erroneously sold, |
and the county
collector shall, on demand of the owner of the |
certificate of purchase, refund
the amount paid, pay any |