SB3215 EngrossedLRB100 18597 HLH 33821 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by changing
5Sections 21-310 and 21-385 as follows:
6    (35 ILCS 200/21-310)
7    Sec. 21-310. Sales in error.
8    (a) When, upon application of the county collector, the
9owner of the certificate of purchase, or a municipality which
10owns or has owned the property ordered sold, it appears to the
11satisfaction of the court which ordered the property sold that
12any of the following subsections are applicable, the court
13shall declare the sale to be a sale in error:
14        (1) the property was not subject to taxation, or all or
15    any part of the lien of taxes sold has become null and void
16    pursuant to Section 21-95 or unenforceable pursuant to
17    subsection (c) of Section 18-250 or subsection (b) of
18    Section 22-40,
19        (2) the taxes or special assessments had been paid
20    prior to the sale of the property,
21        (3) there is a double assessment,
22        (4) the description is void for uncertainty,
23        (5) the assessor, chief county assessment officer,



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1    board of review, board of appeals, or other county official
2    has made an error (other than an error of judgment as to
3    the value of any property),
4        (5.5) the owner of the homestead property had tendered
5    timely and full payment to the county collector that the
6    owner reasonably believed was due and owing on the
7    homestead property, and the county collector did not apply
8    the payment to the homestead property; provided that this
9    provision applies only to homeowners, not their agents or
10    third-party payors,
11        (6) prior to the tax sale a voluntary or involuntary
12    petition has been filed by or against the legal or
13    beneficial owner of the property requesting relief under
14    the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
15        (7) the property is owned by the United States, the
16    State of Illinois, a municipality, or a taxing district, or
17        (8) the owner of the property is a reservist or
18    guardsperson who is granted an extension of his or her due
19    date under Sections 21-15, 21-20, and 21-25 of this Act.
20    (b) When, upon application of the owner of the certificate
21of purchase only, it appears to the satisfaction of the court
22which ordered the property sold that any of the following
23subsections are applicable, the court shall declare the sale to
24be a sale in error:
25        (1) A voluntary or involuntary petition under the
26    provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been



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1    filed subsequent to the tax sale and prior to the issuance
2    of the tax deed.
3        (2) The improvements upon the property sold have been
4    substantially destroyed or rendered uninhabitable or
5    otherwise unfit for occupancy subsequent to the tax sale
6    and prior to the issuance of the tax deed; however, if the
7    court declares a sale in error under this paragraph (2),
8    the court may order the holder of the certificate of
9    purchase to assign the certificate to the county collector
10    if requested by the county collector. The county collector
11    may, upon request of the county, as trustee, or upon
12    request of a taxing district having an interest in the
13    taxes sold, further assign any certificate of purchase
14    received pursuant to this paragraph (2) to the county
15    acting as trustee for taxing districts pursuant to Section
16    21-90 of this Code or to the taxing district having an
17    interest in the taxes sold.
18        (3) There is an interest held by the United States in
19    the property sold which could not be extinguished by the
20    tax deed.
21        (4) The real property contains a hazardous substance,
22    hazardous waste, or underground storage tank that would
23    require cleanup or other removal under any federal, State,
24    or local law, ordinance, or regulation, only if the tax
25    purchaser purchased the property without actual knowledge
26    of the hazardous substance, hazardous waste, or



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1    underground storage tank. This paragraph (4) applies only
2    if the owner of the certificate of purchase has made
3    application for a sale in error at any time before the
4    issuance of a tax deed.
5    Whenever a court declares a sale in error under this
6subsection (b), the court shall promptly notify the county
7collector in writing. Every such declaration pursuant to any
8provision of this subsection (b) shall be made within the
9proceeding in which the tax sale was authorized.
10    (c) When the county collector discovers, prior to the
11expiration of the period of redemption, that a tax sale should
12not have occurred for one or more of the reasons set forth in
13subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
14the county collector shall notify the last known owner of the
15certificate of purchase by certified and regular mail, or other
16means reasonably calculated to provide actual notice, that the
17county collector intends to declare an administrative sale in
18error and of the reasons therefor, including documentation
19sufficient to establish the reason why the sale should not have
20occurred. The owner of the certificate of purchase may object
21in writing within 28 days after the date of the mailing by the
22county collector. If an objection is filed, the county
23collector shall not administratively declare a sale in error,
24but may apply to the circuit court for a sale in error as
25provided in subsection (a) of this Section. Thirty days
26following the receipt of notice by the last known owner of the



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1certificate of purchase, or within a reasonable time
2thereafter, the county collector shall make a written
3declaration, based upon clear and convincing evidence, that the
4taxes were sold in error and shall deliver a copy thereof to
5the county clerk within 30 days after the date the declaration
6is made for entry in the tax judgment, sale, redemption, and
7forfeiture record pursuant to subsection (d) of this Section.
8The county collector shall promptly notify the last known owner
9of the certificate of purchase of the declaration by regular
10mail and shall promptly pay the amount of the tax sale,
11together with interest and costs as provided in Section 21-315,
12upon surrender of the original certificate of purchase.
13    (d) If a sale is declared to be a sale in error, the county
14clerk shall make entry in the tax judgment, sale, redemption
15and forfeiture record, that the property was erroneously sold,
16and the county collector shall, on demand of the owner of the
17certificate of purchase, refund the amount paid, pay any
18interest and costs as may be ordered under Sections 21-315
19through 21-335, and cancel the certificate so far as it relates
20to the property. The county collector shall deduct from the
21accounts of the appropriate taxing bodies their pro rata
22amounts paid. Alternatively, for sales in error declared under
23subsection (b)(2), the county collector may request the circuit
24court to direct the county clerk to record any assignment of
25the tax certificate to or from the county collector without
26charging a fee for the assignment. The owner of the certificate



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1of purchase shall receive all statutory refunds and payments.
2The county collector shall deduct costs and payments in the
3same manner as if a sale in error had occurred.
4(Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06;
595-331, eff. 8-21-07.)
6    (35 ILCS 200/21-385)
7    Sec. 21-385. Extension of period of redemption. The
8purchaser or his or her assignee of property sold for
9nonpayment of general taxes or special assessments may extend
10the period of redemption at any time before the expiration of
11the original period of redemption, or thereafter prior to the
12expiration of any extended period of redemption, for a period
13which will expire not later than 3 years from the date of sale,
14by filing with the county clerk of the county in which the
15property is located a written notice to that effect describing
16the property, stating the date of the sale and specifying the
17extended period of redemption. If prior to the expiration of
18the period of redemption or extended period of redemption a
19petition for tax deed has been filed under Section 22-30, upon
20application of the petitioner, the court shall allow the
21purchaser or his or her assignee to extend the period of
22redemption after expiration of the original period or any
23extended period of redemption, provided that any extension
24allowed will expire not later than 3 years from the date of
25sale, unless the certificate has been assigned to the county



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1collector by order of the court which ordered the property
2sold, in which case the period of redemption shall be extended
3for such period as may be designated by the holder of the
4certificate, such period not to exceed 36 months from the date
5of the assignment to the collector. If the period of redemption
6is extended, the purchaser or his or her assignee must give the
7notices provided for in Section 22-10 at the specified times
8prior to the expiration of the extended period of redemption by
9causing a sheriff (or if he or she is disqualified, a coroner)
10of the county in which the property, or any part thereof, is
11located to serve the notices as provided in Sections 22-15 and
1222-20. The notices may also be served as provided in Sections
1322-15 and 22-20 by a special process server appointed by the
14court under Section 22-15.
15(Source: P.A. 91-209, eff. 1-1-00; 91-554, eff. 8-14-99.)