[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 92-0224
SB508 Enrolled LRB9202791TAtm
AN ACT concerning taxes.
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, 21-315, 21-320, 21-330, 21-335, 22-45, and
22-50 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,
(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 State of Illinois,
a municipality, or a taxing district. a municipality has
acquired the property (i) through the foreclosure of a
lien authorized under Section 11-31-1 of the Illinois
Municipal Code or through a judicial deed issued under
that Section or (ii) through foreclosure of a
receivership certificate lien.
(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 to tax purchases occurring after January 1,
1990 and 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.
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.)
(35 ILCS 200/21-315)
Sec. 21-315. Refund of costs; interest on refund.
(a) In those cases which arise solely under grounds set
forth in Section 21-310 or 22-35, and in no other cases, The
court which orders a sale in error under Section 21-310,
22-35, or 22-50 shall also award a refund of interest on the
refund of the amount paid for the certificate of purchase,
together with 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, except
as otherwise provided in this Section. Except as otherwise
provided in this Section, interest shall be awarded and paid
at the rate of 1% per month from the date of sale to the date
of payment to the tax purchaser, 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.
(b) In those cases which arise solely under grounds set
forth in Section 21-310, the court shall also award 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 on the refund to the owner of the certificate
of purchase shall not be paid (i) in any case in which the
improvements upon the property sold have been substantially
destroyed or rendered uninhabitable or otherwise unfit for
occupancy, (ii) 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 (iii) in any case, after January 1, 1990,
in which the real estate contains a hazardous substance,
hazardous waste, or underground storage tank that would
require a 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, or (iv) 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 tax purchaser, 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 original owner of the
certificate of purchase, or to the latest assignee, if known.
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.
(Source: P.A. 89-69, eff. 6-30-95; 90-655, eff. 7-30-98.)
(35 ILCS 200/21-320)
Sec. 21-320. Refund of other taxes paid by holder of
certificate of purchase. The court which orders a sale in
error shall order the refund of all other taxes paid or
redeemed by the owner of the certificate of purchase or his
or her assignor which were validly posted to the tax
judgment, sale redemption and forfeiture record subsequent to
the tax sale, together with interest on those the other taxes
under the same terms as interest is otherwise payable under
Section 21-315. The interest under this subsection shall be
calculated at the rate of 1% per month from the date the
other taxes were paid and not from the date of sale. The
collector shall take credit in settlement of his or her
accounts for the refund of the other taxes as in other cases
of sale in error under Section 21-310.
(Source: P.A. 86-286; 86-415; 87-669; 88-455.)
(35 ILCS 200/21-330)
Sec. 21-330. Fund for payment of interest. In counties
of under 3,000,000 inhabitants, the county board may impose a
fee of up to $60, which shall be paid to the county
collector, upon each person purchasing any property at a sale
held under this Code, prior to the issuance of any
certificate of purchase. Each person purchasing any property
at a sale held under this Code in a county with 3,000,000 or
more inhabitants shall pay to the county collector, prior to
the issuance of any certificate of purchase, a fee of $100
for each item purchased. That amount shall be included in
the price paid for the certificate of purchase and the amount
required to redeem under Section 21-355.
All sums of money received under this Section shall be
paid by the collector to the county treasurer of the county
in which the property is situated for deposit into a special
fund. It shall be the duty of the county treasurer, as
trustee of the fund, to invest the principal and income of
the fund from time to time, if not immediately required for
payments under this Section, in investments as are authorized
by Sections 3-10009 and 3-11002 of the Counties Code. The
fund shall be held to satisfy orders for payment of interest
and costs obtained against the county treasurer as trustee of
the fund. No payment shall be made from the fund except by
order of the court declaring a sale in error under Section
21-310, 22-35, or 22-50. Any moneys accumulated in the fund
by the county treasurer in excess of $500,000 shall be paid
each year prior to the commencement of the annual tax sale,
first to satisfy any existing unpaid judgments entered
pursuant to Section 21-295, and any funds remaining
thereafter shall be paid to the general fund of the county.
(Source: P.A. 88-455; 88-676, eff. 12-14-94; 89-342, eff.
1-1-96.)
(35 ILCS 200/21-335)
Sec. 21-335. Claims for interest and costs. Any person
claiming interest or costs under Sections 21-315 through
21-330 shall include the claim in his or her petition for
sale in error under Section 21-310, 22-35, or 22-50. Any
claim for interest or costs which is not included in the
petition is waived, except interest or costs may be awarded
to the extent permitted by this Section upon a sale in error
petition filed by the county collector, without requiring a
separate filing by the claimant. Any order for interest or
costs upon the petition for sale in error shall be deemed to
be entered against the county treasurer as trustee of the
fund created by this Section. The fund shall be the sole
source for payment and satisfaction of orders for interest
or costs, except as otherwise provided in this subsection.
If the court determines that the fund has been depleted and
will not be restored in time to pay an award with reasonable
promptness, the court may authorize the collector to pay the
interest portion of the award pro rata from those accounts
where the principal refund of the tax sale purchase price
under Section 21-310 is taken.
(Source: P.A. 86-286; 86-415; 87-669; 88-455.)
(35 ILCS 200/22-45)
Sec. 22-45. Tax deed incontestable unless order appealed
or relief petitioned. Tax deeds issued under Section 22-40
22-35 are incontestable except by appeal from the order of
the court directing the county clerk to issue the tax deed.
However, relief from such order may be had under Section
2-1401 of the Code of Civil Procedure in the same manner and
to the same extent as may be had under that Section with
respect to final orders and judgments in other proceedings.
The grounds for relief under Section 2-1401 shall be limited
to:
(1) proof that the taxes were paid prior to sale;
(2) proof that the property was exempt from taxation;
(3) proof by clear and convincing evidence that the tax
deed had been procured by fraud or deception by the tax
purchaser or his or her assignee; or
(4) proof by a person or party holding a recorded
ownership or other recorded interest in the property that he
or she was not named as a party in the publication notice as
set forth in Section 22-20, and that the tax purchaser or his
or her assignee did not make a diligent inquiry and effort to
serve that person or party with the notices required by
Sections 22-10 through 22-30.
In cases of the sale of homestead property in counties
with 3,000,000 or more inhabitants, a tax deed may also be
voided by the court upon petition, filed not more than 3
months after an order for tax deed was entered, if the court
finds that the property was owner occupied on the expiration
date of the period of redemption and that the order for deed
was effectuated pursuant to a negligent or willful error made
by an employee of the county clerk or county collector during
the period of redemption from the sale that was reasonably
relied upon to the detriment of any person having a
redeemable interest. In such a case, the tax purchaser shall
be entitled to the original amount required to redeem the
property plus interest from the sale as of the last date of
redemption together with costs actually expended subsequent
to the expiration of the period of redemption and reasonable
attorney's fees, all of which shall be dispensed from the
fund created by Section 21-295. In those cases of error where
the court vacates the tax deed, it may award the petitioner
reasonable attorney's fees and court costs actually expended,
payable from that fund. The court hearing a petition filed
under this Section or Section 2-1401 of the Code of Civil
Procedure may concurrently hear a petition filed under
Section 21-295 and may grant relief under either Section.
(Source: P.A. 87-145; 87-669; 87-671; 87-895; 87-1189;
88-455; incorporates 88-451; 88-670, eff. 12-2-94.)
(35 ILCS 200/22-50)
Sec. 22-50. Denial of deed. If the court refuses to enter
an order directing the county clerk to execute and deliver
the tax deed, because of the failure of the purchaser to
fulfill any of the above provisions, and if the purchaser, or
his or her assignee has made a bona fide attempt to comply
with the statutory requirements for the issuance of the tax
deed, then upon application of the owner of the certificate
of purchase the court shall declare the sale to be a sale in
error it shall order the return of the purchase price
forthwith, as in case of sales in error, except that no
interest shall be paid on the purchase price.
(Source: P.A. 86-1158; 86-1431; 86-1475; 87-145; 87-669;
87-671; 87-895; 87-1189; 88-455.)
Section 90. Changes declarative of existing law. Except
for the amendment to subsection (a) of Section 21-315, the
changes made by this amendatory Act of the 92nd General
Assembly are declarative of existing law and shall not be
construed as a new enactment.
Passed in the General Assembly May 09, 2001.
Approved August 02, 2001.
[ Top ]