101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5046

 

Introduced 2/18/2020, by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-295
35 ILCS 200/21-310
35 ILCS 200/21-355

    Amends the Property Tax Code. Provides that the $80 fee paid by tax purchasers is non-refundable. Reinstates provisions imposing a 5% fee on taxes, interest, and penalties due at purchase.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5046LRB101 17356 HLH 66761 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 21-295, 21-310, 21-355 as follows:
 
6    (35 ILCS 200/21-295)
7    Sec. 21-295. Creation of indemnity fund.
8    (a) In counties of less than 3,000,000 inhabitants, each
9person purchasing any property at a sale under this Code shall
10pay to the County Collector, prior to the issuance of any
11certificate of purchase, an indemnity fee set by the county
12collector of not more than $20 for each item purchased. A like
13sum shall be paid for each year that all or a portion of
14subsequent taxes are paid by the tax purchaser and posted to
15the tax judgment, sale, redemption and forfeiture record where
16the underlying certificate of purchase is recorded.
17    (a-5) In counties of 3,000,000 or more inhabitants, each
18person purchasing property at a sale under this Code shall pay
19to the County Collector a non-refundable fee of $80 for each
20item purchased plus an additional sum equal to 5% of taxes,
21interest, and penalties paid by the purchaser, including the
22taxes, interest, and penalties paid under Section 21-240. In
23these counties, the certificate holder shall also pay to the

 

 

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1County Collector a fee of $80 for each year that all or a
2portion of subsequent taxes are paid by the tax purchaser and
3posted to the tax judgment, sale, redemption, and forfeiture
4record, plus an additional sum equal to 5% of all subsequent
5taxes, interest, and penalties. The additional 5% fees are not
6required after December 31, 2006. The changes to this
7subsection made by this amendatory Act of the 91st General
8Assembly are not a new enactment, but declaratory of existing
9law.
10    (b) The amount paid prior to issuance of the certificate of
11purchase pursuant to subsection (a) or (a-5) shall be included
12in the purchase price of the property in the certificate of
13purchase and all amounts paid under this Section shall be
14included in the amount required to redeem under Section 21-355,
15except for the non-refundable $80 fee for each item purchased
16at the tax sale as provided in this Section. Except as
17otherwise provided in subsection (b) of Section 21-300, all
18money received under subsection (a) or (a-5) shall be paid by
19the Collector to the County Treasurer of the County in which
20the land is situated, for the purpose of an indemnity fund. The
21County Treasurer, as trustee of that fund, shall invest all of
22that fund, principal and income, in his or her hands from time
23to time, if not immediately required for payments of
24indemnities under subsection (a) of Section 21-305, in
25investments permitted by the Illinois State Board of Investment
26under Article 22A of the Illinois Pension Code. The county

 

 

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1collector shall report annually to the county clerk on the
2condition and income of the fund. The indemnity fund shall be
3held to satisfy judgments obtained against the County
4Treasurer, as trustee of the fund. No payment shall be made
5from the fund, except upon a judgment of the court which
6ordered the issuance of a tax deed.
7(Source: P.A. 100-1070, eff. 1-1-19.)
 
8    (35 ILCS 200/21-310)
9    Sec. 21-310. Sales in error.
10    (a) When, upon application of the county collector, the
11owner of the certificate of purchase, or a municipality which
12owns or has owned the property ordered sold, it appears to the
13satisfaction of the court which ordered the property sold that
14any of the following subsections are applicable, the court
15shall declare the sale to be a sale in error:
16        (1) the property was not subject to taxation, or all or
17    any part of the lien of taxes sold has become null and void
18    pursuant to Section 21-95 or unenforceable pursuant to
19    subsection (c) of Section 18-250 or subsection (b) of
20    Section 22-40,
21        (2) the taxes or special assessments had been paid
22    prior to the sale of the property,
23        (3) there is a double assessment,
24        (4) the description is void for uncertainty,
25        (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. If the court declares a sale in
5    error under this paragraph (4), the court may order the
6    holder of the certificate of purchase to assign the
7    certificate to the county collector if requested by the
8    county collector. The county collector may, upon request of
9    the county, as trustee, or upon request of a taxing
10    district having an interest in the taxes sold, further
11    assign any certificate of purchase received pursuant to
12    this paragraph (4) to the county acting as trustee for
13    taxing districts pursuant to Section 21-90 of this Code or
14    to the taxing district having an interest in the taxes
15    sold.
16    Whenever a court declares a sale in error under this
17subsection (b), the court shall promptly notify the county
18collector in writing. Every such declaration pursuant to any
19provision of this subsection (b) shall be made within the
20proceeding in which the tax sale was authorized.
21    (c) When the county collector discovers, prior to the
22expiration of the period of redemption, that a tax sale should
23not have occurred for one or more of the reasons set forth in
24subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
25the county collector shall notify the last known owner of the
26certificate of purchase by certified and regular mail, or other

 

 

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1means reasonably calculated to provide actual notice, that the
2county collector intends to declare an administrative sale in
3error and of the reasons therefor, including documentation
4sufficient to establish the reason why the sale should not have
5occurred. The owner of the certificate of purchase may object
6in writing within 28 days after the date of the mailing by the
7county collector. If an objection is filed, the county
8collector shall not administratively declare a sale in error,
9but may apply to the circuit court for a sale in error as
10provided in subsection (a) of this Section. Thirty days
11following the receipt of notice by the last known owner of the
12certificate of purchase, or within a reasonable time
13thereafter, the county collector shall make a written
14declaration, based upon clear and convincing evidence, that the
15taxes were sold in error and shall deliver a copy thereof to
16the county clerk within 30 days after the date the declaration
17is made for entry in the tax judgment, sale, redemption, and
18forfeiture record pursuant to subsection (d) of this Section.
19The county collector shall promptly notify the last known owner
20of the certificate of purchase of the declaration by regular
21mail and shall promptly pay the amount of the tax sale,
22together with interest and costs as provided in Section 21-315,
23upon surrender of the original certificate of purchase.
24    (d) If a sale is declared to be a sale in error, the county
25clerk shall make entry in the tax judgment, sale, redemption
26and forfeiture record, that the property was erroneously sold,

 

 

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1and the county collector shall, on demand of the owner of the
2certificate of purchase, refund the amount paid, except for the
3non-refundable $80 fee paid, pursuant to Section 21-295, for
4each item purchased at the tax sale, pay any interest and costs
5as may be ordered under Sections 21-315 through 21-335, and
6cancel the certificate so far as it relates to the property.
7The county collector shall deduct from the accounts of the
8appropriate taxing bodies their pro rata amounts paid.
9Alternatively, for sales in error declared under subsection
10(b)(2) or (b)(4), the county collector may request the circuit
11court to direct the county clerk to record any assignment of
12the tax certificate to or from the county collector without
13charging a fee for the assignment. The owner of the certificate
14of purchase shall receive all statutory refunds and payments.
15The county collector shall deduct costs and payments in the
16same manner as if a sale in error had occurred.
17(Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20.)
 
18    (35 ILCS 200/21-355)
19    Sec. 21-355. Amount of redemption. Any person desiring to
20redeem shall deposit an amount specified in this Section with
21the county clerk of the county in which the property is
22situated, in legal money of the United States, or by cashier's
23check, certified check, post office money order or money order
24issued by a financial institution insured by an agency or
25instrumentality of the United States, payable to the county

 

 

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1clerk of the proper county. The deposit shall be deemed timely
2only if actually received in person at the county clerk's
3office prior to the close of business as defined in Section
43-2007 of the Counties Code on or before the expiration of the
5period of redemption or by United States mail with a post
6office cancellation mark dated not less than one day prior to
7the expiration of the period of redemption. The deposit shall
8be in an amount equal to the total of the following:
9        (a) the certificate amount, which shall include all tax
10    principal, special assessments, interest and penalties
11    paid by the tax purchaser together with costs and fees of
12    sale and fees paid under Sections 21-295 and 21-315 through
13    21-335, except for the non-refundable $80 fee paid,
14    pursuant to Section 21-295, for each item purchased at the
15    tax sale;
16        (b) the accrued penalty, computed through the date of
17    redemption as a percentage of the certificate amount, as
18    follows:
19            (1) if the redemption occurs on or before the
20        expiration of 6 months from the date of sale, the
21        certificate amount times the penalty bid at sale;
22            (2) if the redemption occurs after 6 months from
23        the date of sale, and on or before the expiration of 12
24        months from the date of sale, the certificate amount
25        times 2 times the penalty bid at sale;
26            (3) if the redemption occurs after 12 months from

 

 

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1        the date of sale and on or before the expiration of 18
2        months from the date of sale, the certificate amount
3        times 3 times the penalty bid at sale;
4            (4) if the redemption occurs after 18 months from
5        the date of sale and on or before the expiration of 24
6        months from the date of sale, the certificate amount
7        times 4 times the penalty bid at sale;
8            (5) if the redemption occurs after 24 months from
9        the date of sale and on or before the expiration of 30
10        months from the date of sale, the certificate amount
11        times 5 times the penalty bid at sale;
12            (6) if the redemption occurs after 30 months from
13        the date of sale and on or before the expiration of 36
14        months from the date of sale, the certificate amount
15        times 6 times the penalty bid at sale.
16            In the event that the property to be redeemed has
17        been purchased under Section 21-405, the penalty bid
18        shall be 12% per penalty period as set forth in
19        subparagraphs (1) through (6) of this subsection (b).
20        The changes to this subdivision (b)(6) made by this
21        amendatory Act of the 91st General Assembly are not a
22        new enactment, but declaratory of existing law.
23        (c) The total of all taxes, special assessments,
24    accrued interest on those taxes and special assessments and
25    costs charged in connection with the payment of those taxes
26    or special assessments, except for the non-refundable $80

 

 

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1    fee paid, pursuant to Section 21-295, for each item
2    purchased at the tax sale, which have been paid by the tax
3    certificate holder on or after the date those taxes or
4    special assessments became delinquent together with 12%
5    penalty on each amount so paid for each year or portion
6    thereof intervening between the date of that payment and
7    the date of redemption. In counties with less than
8    3,000,000 inhabitants, however, a tax certificate holder
9    may not pay all or part of an installment of a subsequent
10    tax or special assessment for any year, nor shall any
11    tender of such a payment be accepted, until after the
12    second or final installment of the subsequent tax or
13    special assessment has become delinquent or until after the
14    holder of the certificate of purchase has filed a petition
15    for a tax deed under Section 22.30. The person redeeming
16    shall also pay the amount of interest charged on the
17    subsequent tax or special assessment and paid as a penalty
18    by the tax certificate holder. This amendatory Act of 1995
19    applies to tax years beginning with the 1995 taxes, payable
20    in 1996, and thereafter.
21        (d) Any amount paid to redeem a forfeiture occurring
22    subsequent to the tax sale together with 12% penalty
23    thereon for each year or portion thereof intervening
24    between the date of the forfeiture redemption and the date
25    of redemption from the sale.
26        (e) Any amount paid by the certificate holder for

 

 

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1    redemption of a subsequently occurring tax sale.
2        (f) All fees paid to the county clerk under Section
3    22-5.
4        (g) All fees paid to the registrar of titles incident
5    to registering the tax certificate in compliance with the
6    Registered Titles (Torrens) Act.
7        (h) All fees paid to the circuit clerk and the sheriff,
8    a licensed or registered private detective, or the coroner
9    in connection with the filing of the petition for tax deed
10    and service of notices under Sections 22-15 through 22-30
11    and 22-40 in addition to (1) a fee of $35 if a petition for
12    tax deed has been filed, which fee shall be posted to the
13    tax judgement, sale, redemption, and forfeiture record, to
14    be paid to the purchaser or his or her assignee; (2) a fee
15    of $4 if a notice under Section 22-5 has been filed, which
16    fee shall be posted to the tax judgment, sale, redemption,
17    and forfeiture record, to be paid to the purchaser or his
18    or her assignee; (3) all costs paid to record a lis pendens
19    notice in connection with filing a petition under this
20    Code; and (4) if a petition for tax deed has been filed,
21    all fees up to $150 per redemption paid to a registered or
22    licensed title insurance company or title insurance agent
23    for a title search to identify all owners, parties
24    interested, and occupants of the property, to be paid to
25    the purchaser or his or her assignee. The fees in (1) and
26    (2) of this paragraph (h) shall be exempt from the posting

 

 

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1    requirements of Section 21-360. The costs incurred in
2    causing notices to be served by a licensed or registered
3    private detective under Section 22-15, may not exceed the
4    amount that the sheriff would be authorized by law to
5    charge if those notices had been served by the sheriff.
6        (i) All fees paid for publication of notice of the tax
7    sale in accordance with Section 22-20.
8        (j) All sums paid to any county, city, village or
9    incorporated town for reimbursement under Section 22-35.
10        (k) All costs and expenses of receivership under
11    Section 21-410, to the extent that these costs and expenses
12    exceed any income from the property in question, if the
13    costs and expenditures have been approved by the court
14    appointing the receiver and a certified copy of the order
15    or approval is filed and posted by the certificate holder
16    with the county clerk. Only actual costs expended may be
17    posted on the tax judgment, sale, redemption and forfeiture
18    record.
19(Source: P.A. 98-1162, eff. 6-1-15.)