Public Act 094-0662
 
SB2053 Enrolled LRB094 05570 BDD 35619 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Property Tax Code is amended by changing
Sections 21-310 and 21-315 as follows:
 
    (35 ILCS 200/21-310)
    Sec. 21-310. Sales in error.
    (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:
        (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,
        (2) the taxes or special assessments had been paid
    prior to the sale of the property,
        (3) there is a double assessment,
        (4) the description is void for uncertainty,
        (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
    the value of any property),
        (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,
        (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
        (7) the property is owned by the United States, the
    State of Illinois, a municipality, or a taxing district.
    (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:
        (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.
        (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.
        (3) There is an interest held by the United States in
    the property sold which could not be extinguished by the
    tax deed.
        (4) The real property contains a hazardous substance,
    hazardous waste, or underground storage tank that would
    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.
    (c) When the county collector discovers, prior to the
expiration of the period of redemption 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
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
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
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.
    (d) If a sale is declared to be a sale in error, the county
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
interest and costs as may be ordered under Sections 21-315
through 21-335, and cancel the certificate so far as it relates
to the property. The county collector shall deduct from the
accounts of the appropriate taxing bodies their pro rata
amounts paid.
(Source: P.A. 91-177, eff. 1-1-00; 91-357, eff. 7-29-99;
91-924, eff. 1-1-01; 92-224, eff. 1-1-02; 92-729, eff.
7-25-02.)
 
    (35 ILCS 200/21-315)
    Sec. 21-315. Refund of costs; interest on refund.
    (a) If a sale in error under Section 21-310, 22-35, or
22-50 is declared, the amount refunded shall also include all
costs paid by the owner of the certificate of purchase or his
or her assignor which were posted to the tax judgment, sale,
redemption and forfeiture record.
    (b) In those cases which arise solely under grounds set
forth in Section 21-310, the amount refunded shall also include
interest on the refund of the amount paid for the certificate
of purchase, except as otherwise provided in this Section.
Interest shall be awarded and paid to the tax purchaser at the
rate of 1% per month from the date of sale to the date of
payment, or in an amount equivalent to the penalty interest
which would be recovered on a redemption at the time of payment
pursuant to the order for sale in error, whichever is less.
Interest shall not be paid when the sale in error is made
pursuant to paragraph (2) or (4) of subsection (b) of Section
21-310, Section 22-35, Section 22-50, any ground not enumerated
in Section 21-310, or in any other case where the court
determines that the tax purchaser had actual knowledge prior to
the sale of the grounds on which the sale is declared to be
erroneous.
    (c) When the county collector files a petition for sale in
error under Section 21-310 and mails a notice thereof by
certified or registered mail to the last known owner of the
certificate of purchase, any interest otherwise payable under
this Section shall cease to accrue as of the date the petition
is filed, unless the tax purchaser agrees to an order for sale
in error upon the presentation of the petition to the court.
Notices under this subsection may be mailed to the last known
owner of the certificate of purchase. When the owner of the
certificate of purchase contests the collector's petition
solely to determine whether the grounds for sale in error are
such as to support a claim for interest, the court may direct
that the principal amount of the refund be paid to the owner of
the certificate of purchase forthwith. If the court thereafter
determines that a claim for interest lies under this Section,
it shall award such interest from the date of sale to the date
the principal amount was paid. If the owner of the certificate
of purchase files an objection to the county collector's
intention to declare an administrative sale in error, as
provided under subsection (c) of Section 21-310, and,
thereafter, the county collector elects to apply to the circuit
court for a sale in error under subsection (a) of Section
21-310, then, if the circuit court grants the county
collector's application for a sale in error, the court may not
award interest to the owner of the certificate of purchase for
the period after the mailing date of the county collector's
notice of intention to declare an administrative sale in error.
(Source: P.A. 92-224, eff. 1-1-02; 92-729, eff. 7-25-02.)

Effective Date: 1/1/2006