State of Illinois
91st General Assembly
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Public Act 91-0189

SB51 Enrolled                                  LRB9101825PTpk

    AN ACT to amend the Property Tax Code by changing Section
21-260.

    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
Section 21-260 as follows:

    (35 ILCS 200/21-260)
    Sec.  21-260.   Collector's  scavenger  sale.   Upon  the
county collector's application under Section  21-145,  to  be
known  as  the  Scavenger  Sale  Application, the Court shall
enter judgment for the general taxes, special taxes,  special
assessments, interest, penalties and costs as are included in
the advertisement and appear to be due thereon after allowing
an opportunity to object and a hearing upon the objections as
provided  in  Section 21-175, and order those properties sold
by the County Collector at public sale to the highest  bidder
for  cash,  notwithstanding the bid may be less than the full
amount  of  taxes,  special   taxes,   special   assessments,
interest,  penalties  and  costs  for which judgment has been
entered.
    (a)  Conducting the  sale  -  Bidding.    All  properties
shall be offered for sale in consecutive order as they appear
in  the  delinquent  list.  The  minimum bid for any property
shall be $250 or one-half of the tax if the  total  liability
is  less  than $500.  The successful bidder shall immediately
pay the amount of minimum bid  to  the  County  Collector  in
cash, by certified or cashier's check, or by money order, or,
if  the  successful bidder is a governmental unit, by a check
issued by that governmental unit.  If  the  bid  exceeds  the
minimum  bid,  the successful bidder shall pay the balance of
the bid to the county collector  in  cash,  by  certified  or
cashier's  check,  or  by  money order, or, if the successful
bidder is a governmental unit, by  a  check  issued  by  that
governmental unit  by the close of the next business day.  If
the  minimum  bid  is  not paid at the time of sale or if the
balance is not paid by the close of the  next  business  day,
then  the  sale  is  void  and  the  minimum bid, if paid, is
forfeited to the county general fund.   In  that  event,  the
property  shall  be  reoffered for sale within 30 days of the
last offering of property in regular  order.   The  collector
shall  make  available to the public a list of all properties
to be included in any reoffering due to the  voiding  of  the
original  sale.   The  collector  is not required to serve or
publish  any  other  notice  of  the  reoffering   of   those
properties.  In  the event that any of the properties are not
sold upon reoffering, or are sold for less than the amount of
the original voided sale, the original bidder who  failed  to
pay the bid amount shall remain liable for the unpaid balance
of  the  bid  in  an  action under Section 21-240.  Liability
shall not be reduced where the bidder  upon  reoffering  also
fails  to  pay the bid amount, and in that event both bidders
shall  remain  liable  for  the  unpaid  balance   of   their
respective  bids.  A  sale  of  properties under this Section
shall not be final until confirmed by the court.
    (b)  Confirmation of sales.  The county  collector  shall
file his or her report of sale in the court within 30 days of
the  date  of sale of each property.  No notice of the county
collector's  application  to  confirm  the  sales  shall   be
required  except  as  prescribed  by rule of the court.  Upon
confirmation, except in cases where  the  sale  becomes  void
under   Section  22-85,  or  in  cases  where  the  order  of
confirmation is vacated by  the  court,  a  sale  under  this
Section  shall  extinguish  the  in  rem  lien of the general
taxes,  special  taxes  and  special  assessments  for  which
judgment has been entered and a redemption shall  not  revive
the  lien.  Confirmation of the sale shall in no event affect
the owner's personal liability to pay the taxes, interest and
penalties as provided in this Code or prevent institution  of
a  proceeding under Section 21-440 to collect any amount that
may remain due after the sale.
    (c)  Issuance of tax sale certificates. Upon confirmation
of the sale the County Clerk and the County  Collector  shall
issue  to the purchaser a certificate of purchase in the form
prescribed  by  Section  21-250  as  near  as  may   be.    A
certificate of purchase shall not be issued to any person who
is  ineligible to bid at the sale or to receive a certificate
of purchase under Section 21-265.
    (d)  Scavenger Tax Judgment, Sale and Redemption Record -
Sale of parcels not sold.  The county collector shall prepare
a Scavenger Tax Judgment, Sale and  Redemption  Record.   The
county  clerk  shall  write  or  stamp  on  the scavenger tax
judgment, sale, forfeiture and redemption record opposite the
description of any property offered for sale and not sold, or
not confirmed for any reason,  the  words  "offered  but  not
sold".  The  properties which are offered for sale under this
Section and not sold or not confirmed shall  be  offered  for
sale  annually  thereafter  in  the  manner  provided in this
Section until sold, except in the  case  of  mineral  rights,
which  after  10  consecutive years of being offered for sale
under this Section and not sold or confirmed shall no  longer
be  required  to  be  offered  for  sale. At any time between
annual sales the County Collector may advertise for sale  any
properties   subject   to   sale  under  judgments  for  sale
previously entered under this Section and  not  executed  for
any reason.  The advertisement and sale shall be regulated by
the provisions of this Code as far as applicable.
    (e)  Proceeding to tax deed. The owner of the certificate
of  purchase  shall  give notice as required by Sections 22-5
through 22-30, and may extend the  period  of  redemption  as
provided by Section 21-385. At any time within 5 months prior
to  expiration  of the period of redemption from a sale under
this Code, the owner of a certificate of purchase may file  a
petition  and  may  obtain  a  tax  deed under Sections 22-30
through 22-55. All proceedings for the issuance of a tax deed
and all tax deeds for  properties  sold  under  this  Section
shall  be  subject  to  Sections  22-30  through 22-55. Deeds
issued under this Section are subject to Section 22-70.  This
Section shall  be  liberally  construed  so  that  the  deeds
provided for in this Section convey merchantable title.
    (f)  Redemptions from scavenger sales. Redemptions may be
made  from  sales  under  this Section in the same manner and
upon the same terms and conditions as redemptions from  sales
made  under  the  County  Collector's  annual application for
judgment and order of sale, except that in  lieu  of  penalty
the  person  redeeming  shall  pay interest as follows if the
sale occurs before September 9, 1993:
         (1)  If redeemed within the first 2 months from  the
    date  of  the  sale, 3% per month or portion thereof upon
    the amount for which the property was sold;
         (2)  If redeemed between 2 and  6  months  from  the
         date  of  the  sale, 12% of the amount for which the
         property was sold;
         (3)  If redeemed between 6 and 12  months  from  the
    date  of  the  sale,  24%  of  the  amount  for which the
    property was sold;
         (4)  If redeemed between 12 and 18 months  from  the
    date  of  the  sale,  36%  of  the  amount  for which the
    property was sold;
         (5)  If redeemed between 18 and 24 months  from  the
    date  of  the  sale,  48%  of  the  amount  for which the
    property was sold;
         (6)  If redeemed after 24 months from  the  date  of
    sale,  the  48% herein provided together with interest at
    6% per year thereafter.
    If the sale occurs on or after  September  9,  1993,  the
person  redeeming  shall  pay  interest  on  that part of the
amount for which the property was sold equal to or less  than
the  full  amount  of  delinquent taxes, special assessments,
penalties, interest, and costs, included in the judgment  and
order of sale as follows:
         (1)  If  redeemed within the first 2 months from the
    date of the sale, 3% per month upon the amount of  taxes,
    special  assessments,  penalties, interest, and costs due
    for each of the first 2 months, or fraction thereof.
         (2)  If redeemed at any time between 2 and 6  months
    from  the  date  of the sale, 12% of the amount of taxes,
    special assessments, penalties, interest, and costs due.
         (3)  If redeemed at any time between 6 and 12 months
    from the date of the sale, 24% of the  amount  of  taxes,
    special assessments, penalties, interest, and costs due.
         (4)  If  redeemed  at  any  time  between  12 and 18
    months from the date of the sale, 36% of  the  amount  of
    taxes,  special  assessments,  penalties,  interest,  and
    costs due.
         (5)  If  redeemed  at  any  time  between  18 and 24
    months from the date of the sale, 48% of  the  amount  of
    taxes,  special  assessments,  penalties,  interest,  and
    costs due.
         (6)  If  redeemed  after  24 months from the date of
    sale, the 48% provided for the 24  months  together  with
    interest  at  6%  per  annum  thereafter on the amount of
    taxes,  special  assessments,  penalties,  interest,  and
    costs due.
    The person redeeming shall not be  required  to  pay  any
interest on any part of the amount for which the property was
sold  that  exceeds  the  full  amount  of  delinquent taxes,
special assessments, penalties, interest, and costs  included
in the judgment and order of sale.
    Notwithstanding  any  other  provision  of  this Section,
except for owner-occupied  single  family  residential  units
which  are condominium units, cooperative units or dwellings,
the amount required to be  paid  for  redemption  shall  also
include  an  amount  equal  to  all  delinquent  taxes on the
property which taxes were delinquent at  the  time  of  sale.
The  delinquent  taxes  shall  be  apportioned  by the county
collector among the taxing districts in which the property is
situated in accordance with law. In the event that all moneys
received from any sale held  under  this  Section  exceed  an
amount  equal  to  all delinquent taxes on the property sold,
which taxes were delinquent at the  time  of  sale,  together
with  all  publication  and  other  costs associated with the
sale, then, upon redemption, the  County  Collector  and  the
County  Clerk  shall  apply  the excess amount to the cost of
redemption.
    (g)  Bidding by county or other  taxing  districts.   Any
taxing  district  may  bid  at  a scavenger sale.  The county
board of the county in  which  properties  offered  for  sale
under  this  Section  are  located may bid as trustee for all
taxing districts having an interest  in  the  taxes  for  the
nonpayment of which the parcels are offered. The County shall
apply  on  the bid the unpaid taxes due upon the property and
no cash need be paid. The County  or  other  taxing  district
acquiring  a  tax  sale  certificate  shall  take  all  steps
necessary to acquire title to the property and may manage and
operate the property so acquired.
    When  a  county,  or  other  taxing  district  within the
county, is a petitioner for a tax deed, no filing  fee  shall
be required on the petition. The county as a tax creditor and
as  trustee for other tax creditors, or other taxing district
within the county shall not be required to allege  and  prove
that  all  taxes and special assessments which become due and
payable after the sale to the  county  have  been  paid.  The
county shall not be required to pay the subsequently accruing
taxes  or  special  assessments at any time. Upon the written
request of the county  board  or  its  designee,  the  county
collector  shall  not  offer the property for sale at any tax
sale subsequent to the sale of the  property  to  the  county
under this Section. The lien of taxes and special assessments
which  become  due and payable after a sale to a county shall
merge in the  fee  title  of  the  county,  or  other  taxing
district,  on the issuance of a deed. The County may sell the
properties  so  acquired,  or  the  certificate  of  purchase
thereto, and the proceeds of the sale shall be distributed to
the  taxing  districts  in  proportion  to  their  respective
interests therein. The presiding officer of the county board,
with the advice and consent of the County Board, may  appoint
some  officer  or person to attend scavenger sales and bid on
its behalf.
    (h)  Miscellaneous provisions.  In  the  event  that  the
tract  of  land  or lot sold at any such sale is not redeemed
within the time permitted by law and a tax  deed  is  issued,
all  moneys  that may be received from the sale of properties
in  excess  of  the  delinquent  taxes,  together  with   all
publication  and other costs associated with the sale, shall,
upon petition of any  interested  party  to  the  court  that
issued  the  tax deed, be distributed by the County Collector
pursuant to order of the court among the persons having legal
or equitable interests in the property according to the  fair
value  of their interests in the tract or lot. Section 21-415
does not apply to properties sold under this Section. Appeals
may be taken from the orders and judgments entered under this
Section as in other civil cases.  The remedy herein  provided
is  in  addition  to  other  remedies  for  the collection of
delinquent taxes.
(Source: P.A. 90-514, eff. 8-22-97; 90-655, eff. 7-30-98.)

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