101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5441

 

Introduced , by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-260
35 ILCS 200/22-10
35 ILCS 200/22-25

    Amends the Property Tax Code. Provides that the owner of a certificate of purchase must file with the county clerk the names and addresses of the owners of the property and those persons entitled to service of notice at their last known addresses. Provides that the clerk shall mail notice within 30 days from the date of the filing of addresses with the clerk.


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

 

 

A BILL FOR

 

HB5441LRB101 20783 HLH 70475 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 21-260, 22-10, and 22-25 as follows:
 
6    (35 ILCS 200/21-260)
7    Sec. 21-260. Collector's scavenger sale. Upon the county
8collector's application under Section 21-145, to be known as
9the Scavenger Sale Application, the Court shall enter judgment
10for the general taxes, special taxes, special assessments,
11interest, penalties and costs as are included in the
12advertisement and appear to be due thereon after allowing an
13opportunity to object and a hearing upon the objections as
14provided in Section 21-175, and order those properties sold by
15the County Collector at public sale to the highest bidder for
16cash, notwithstanding the bid may be less than the full amount
17of taxes, special taxes, special assessments, interest,
18penalties and costs for which judgment has been entered.
19    (a) Conducting the sale - Bidding. All properties shall be
20offered for sale in consecutive order as they appear in the
21delinquent list. The minimum bid for any property shall be $250
22or one-half of the tax if the total liability is less than
23$500. The successful bidder shall immediately pay the amount of

 

 

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1minimum bid to the County Collector in cash, by certified or
2cashier's check, by money order, or, if the successful bidder
3is a governmental unit, by a check issued by that governmental
4unit. If the bid exceeds the minimum bid, the successful bidder
5shall pay the balance of the bid to the county collector in
6cash, by certified or cashier's check, by money order, or, if
7the successful bidder is a governmental unit, by a check issued
8by that governmental unit by the close of the next business
9day. If the minimum bid is not paid at the time of sale or if
10the balance is not paid by the close of the next business day,
11then the sale is void and the minimum bid, if paid, is
12forfeited to the county general fund. In that event, the
13property shall be reoffered for sale within 30 days of the last
14offering of property in regular order. The collector shall make
15available to the public a list of all properties to be included
16in any reoffering due to the voiding of the original sale. The
17collector is not required to serve or publish any other notice
18of the reoffering of those properties. In the event that any of
19the properties are not sold upon reoffering, or are sold for
20less than the amount of the original voided sale, the original
21bidder who failed to pay the bid amount shall remain liable for
22the unpaid balance of the bid in an action under Section
2321-240. Liability shall not be reduced where the bidder upon
24reoffering also fails to pay the bid amount, and in that event
25both bidders shall remain liable for the unpaid balance of
26their respective bids. A sale of properties under this Section

 

 

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1shall not be final until confirmed by the court.
2    (b) Confirmation of sales. The county collector shall file
3his or her report of sale in the court within 30 days of the
4date of sale of each property. No notice of the county
5collector's application to confirm the sales shall be required
6except as prescribed by rule of the court. Upon confirmation,
7except in cases where the sale becomes void under Section
822-85, or in cases where the order of confirmation is vacated
9by the court, a sale under this Section shall extinguish the in
10rem lien of the general taxes, special taxes and special
11assessments for which judgment has been entered and a
12redemption shall not revive the lien. Confirmation of the sale
13shall in no event affect the owner's personal liability to pay
14the taxes, interest and penalties as provided in this Code or
15prevent institution of a proceeding under Section 21-440 to
16collect any amount that may remain due after the sale.
17    (c) Issuance of tax sale certificates. Upon confirmation of
18the sale the County Clerk and the County Collector shall issue
19to the purchaser a certificate of purchase in the form
20prescribed by Section 21-250 as near as may be. A certificate
21of purchase shall not be issued to any person who is ineligible
22to bid at the sale or to receive a certificate of purchase
23under Section 21-265.
24    (d) Scavenger Tax Judgment, Sale and Redemption Record -
25Sale of parcels not sold. The county collector shall prepare a
26Scavenger Tax Judgment, Sale and Redemption Record. The county

 

 

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1clerk shall write or stamp on the scavenger tax judgment, sale,
2forfeiture and redemption record opposite the description of
3any property offered for sale and not sold, or not confirmed
4for any reason, the words "offered but not sold". The
5properties which are offered for sale under this Section and
6not sold or not confirmed shall be offered for sale annually
7thereafter in the manner provided in this Section until sold,
8except in the case of mineral rights, which after 10
9consecutive years of being offered for sale under this Section
10and not sold or confirmed shall no longer be required to be
11offered for sale. At any time between annual sales the County
12Collector may advertise for sale any properties subject to sale
13under judgments for sale previously entered under this Section
14and not executed for any reason. The advertisement and sale
15shall be regulated by the provisions of this Code as far as
16applicable.
17    (e) Proceeding to tax deed. The owner of the certificate of
18purchase shall give notice as required by Sections 22-5 through
1922-30, and may extend the period of redemption as provided by
20Section 21-385. At any time within 6 months prior to expiration
21of the period of redemption from a sale under this Code, the
22owner of a certificate of purchase may file a petition and may
23obtain a tax deed under Sections 22-30 through 22-55. Within 30
24days from filing of the petition, the owner of a certificate
25must file with the county clerk the names and addresses of the
26owners of the property and those persons entitled to service of

 

 

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1notice at their last known addresses. The clerk shall mail
2notice within 30 days from the date of the filing of addresses
3with the clerk. All proceedings for the issuance of a tax deed
4and all tax deeds for properties sold under this Section shall
5be subject to Sections 22-30 through 22-55. Deeds issued under
6this Section are subject to Section 22-70. This Section shall
7be liberally construed so that the deeds provided for in this
8Section convey merchantable title.
9    (f) Redemptions from scavenger sales. Redemptions may be
10made from sales under this Section in the same manner and upon
11the same terms and conditions as redemptions from sales made
12under the County Collector's annual application for judgment
13and order of sale, except that in lieu of penalty the person
14redeeming shall pay interest as follows if the sale occurs
15before September 9, 1993:
16        (1) If redeemed within the first 2 months from the date
17    of the sale, 3% per month or portion thereof upon the
18    amount for which the property was sold;
19        (2) If redeemed between 2 and 6 months from the date of
20    the sale, 12% of the amount for which the property was
21    sold;
22        (3) If redeemed between 6 and 12 months from the date
23    of the sale, 24% of the amount for which the property was
24    sold;
25        (4) If redeemed between 12 and 18 months from the date
26    of the sale, 36% of the amount for which the property was

 

 

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1    sold;
2        (5) If redeemed between 18 and 24 months from the date
3    of the sale, 48% of the amount for which the property was
4    sold;
5        (6) If redeemed after 24 months from the date of sale,
6    the 48% herein provided together with interest at 6% per
7    year thereafter.
8    If the sale occurs on or after September 9, 1993, the
9person redeeming shall pay interest on that part of the amount
10for which the property was sold equal to or less than the full
11amount of delinquent taxes, special assessments, penalties,
12interest, and costs, included in the judgment and order of sale
13as follows:
14        (1) If redeemed within the first 2 months from the date
15    of the sale, 3% per month upon the amount of taxes, special
16    assessments, penalties, interest, and costs due for each of
17    the first 2 months, or fraction thereof.
18        (2) If redeemed at any time between 2 and 6 months from
19    the date of the sale, 12% of the amount of taxes, special
20    assessments, penalties, interest, and costs due.
21        (3) If redeemed at any time between 6 and 12 months
22    from the date of the sale, 24% of the amount of taxes,
23    special assessments, penalties, interest, and costs due.
24        (4) If redeemed at any time between 12 and 18 months
25    from the date of the sale, 36% of the amount of taxes,
26    special assessments, penalties, interest, and costs due.

 

 

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1        (5) If redeemed at any time between 18 and 24 months
2    from the date of the sale, 48% of the amount of taxes,
3    special assessments, penalties, interest, and costs due.
4        (6) If redeemed after 24 months from the date of sale,
5    the 48% provided for the 24 months together with interest
6    at 6% per annum thereafter on the amount of taxes, special
7    assessments, penalties, interest, and costs due.
8    The person redeeming shall not be required to pay any
9interest on any part of the amount for which the property was
10sold that exceeds the full amount of delinquent taxes, special
11assessments, penalties, interest, and costs included in the
12judgment and order of sale.
13    Notwithstanding any other provision of this Section,
14except for owner-occupied single family residential units
15which are condominium units, cooperative units or dwellings,
16the amount required to be paid for redemption shall also
17include an amount equal to all delinquent taxes on the property
18which taxes were delinquent at the time of sale. The delinquent
19taxes shall be apportioned by the county collector among the
20taxing districts in which the property is situated in
21accordance with law. In the event that all moneys received from
22any sale held under this Section exceed an amount equal to all
23delinquent taxes on the property sold, which taxes were
24delinquent at the time of sale, together with all publication
25and other costs associated with the sale, then, upon
26redemption, the County Collector and the County Clerk shall

 

 

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1apply the excess amount to the cost of redemption.
2    (g) Bidding by county or other taxing districts. Any taxing
3district may bid at a scavenger sale. The county board of the
4county in which properties offered for sale under this Section
5are located may bid as trustee for all taxing districts having
6an interest in the taxes for the nonpayment of which the
7parcels are offered. The County shall apply on the bid the
8unpaid taxes due upon the property and no cash need be paid.
9The County or other taxing district acquiring a tax sale
10certificate shall take all steps necessary to acquire title to
11the property and may manage and operate the property so
12acquired.
13    When a county, or other taxing district within the county,
14is a petitioner for a tax deed, no filing fee shall be required
15on the petition. The county as a tax creditor and as trustee
16for other tax creditors, or other taxing district within the
17county shall not be required to allege and prove that all taxes
18and special assessments which become due and payable after the
19sale to the county have been paid. The county shall not be
20required to pay the subsequently accruing taxes or special
21assessments at any time. Upon the written request of the county
22board or its designee, the county collector shall not offer the
23property for sale at any tax sale subsequent to the sale of the
24property to the county under this Section. The lien of taxes
25and special assessments which become due and payable after a
26sale to a county shall merge in the fee title of the county, or

 

 

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1other taxing district, on the issuance of a deed. The County
2may sell the properties so acquired, or the certificate of
3purchase thereto, and the proceeds of the sale shall be
4distributed to the taxing districts in proportion to their
5respective interests therein. The presiding officer of the
6county board, with the advice and consent of the County Board,
7may appoint some officer or person to attend scavenger sales
8and bid on its behalf.
9    (h) Miscellaneous provisions. In the event that the tract
10of land or lot sold at any such sale is not redeemed within the
11time permitted by law and a tax deed is issued, all moneys that
12may be received from the sale of properties in excess of the
13delinquent taxes, together with all publication and other costs
14associated with the sale, shall, upon petition of any
15interested party to the court that issued the tax deed, be
16distributed by the County Collector pursuant to order of the
17court among the persons having legal or equitable interests in
18the property according to the fair value of their interests in
19the tract or lot. Section 21-415 does not apply to properties
20sold under this Section. Appeals may be taken from the orders
21and judgments entered under this Section as in other civil
22cases. The remedy herein provided is in addition to other
23remedies for the collection of delinquent taxes.
24    (i) The changes to this Section made by this amendatory Act
25of the 95th General Assembly apply only to matters in which a
26petition for tax deed is filed on or after the effective date

 

 

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1of this amendatory Act of the 95th General Assembly.
2(Source: P.A. 95-477, eff. 6-1-08.)
 
3    (35 ILCS 200/22-10)
4    Sec. 22-10. Notice of expiration of period of redemption. A
5purchaser or assignee shall not be entitled to a tax deed to
6the property sold unless, not less than 3 months nor more than
76 months prior to the expiration of the period of redemption,
8he or she gives notice of the sale and the date of expiration
9of the period of redemption to the owners, occupants, and
10parties interested in the property, including any mortgagee of
11record, as provided below. The clerk must mail notice in
12accordance with provisions of subsection (e) of 21-260.
13    The Notice to be given to the parties shall be in at least
1410 point type in the following form completely filled in:
15TAX DEED NO. .................... FILED ....................
16
TAKE NOTICE
17    County of ...............................................
18    Date Premises Sold ......................................
19    Certificate No. ........................................
20    Sold for General Taxes of (year) ........................
21    Sold for Special Assessment of (Municipality)
22    and special assessment number ...........................
23    Warrant No. ................ Inst. No. .................
24
THIS PROPERTY HAS BEEN SOLD FOR
25
DELINQUENT TAXES

 

 

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1Property located at .........................................
2Legal Description or Property Index No. .....................
3.............................................................
4.............................................................
5    This notice is to advise you that the above property has
6been sold for delinquent taxes and that the period of
7redemption from the sale will expire on .....................
8.............................................................
9    The amount to redeem is subject to increase at 6 month
10intervals from the date of sale and may be further increased if
11the purchaser at the tax sale or his or her assignee pays any
12subsequently accruing taxes or special assessments to redeem
13the property from subsequent forfeitures or tax sales. Check
14with the county clerk as to the exact amount you owe before
15redeeming.
16    This notice is also to advise you that a petition has been
17filed for a tax deed which will transfer title and the right to
18possession of this property if redemption is not made on or
19before ......................................................
20    This matter is set for hearing in the Circuit Court of this
21county in ...., Illinois on .....
22    You may be present at this hearing but your right to redeem
23will already have expired at that time.
24
YOU ARE URGED TO REDEEM IMMEDIATELY
25
TO PREVENT LOSS OF PROPERTY
26    Redemption can be made at any time on or before .... by

 

 

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1applying to the County Clerk of ...., County, Illinois at the
2Office of the County Clerk in ...., Illinois.
3    For further information contact the County Clerk
4ADDRESS:....................
5TELEPHONE:..................
 
6
..........................
7
Purchaser or Assignee.
8
Dated (insert date).

 
9    In counties with 3,000,000 or more inhabitants, the notice
10shall also state the address, room number and time at which the
11matter is set for hearing.
12    The changes to this Section made by this amendatory Act of
13the 97th General Assembly apply only to matters in which a
14petition for tax deed is filed on or after the effective date
15of this amendatory Act of the 97th General Assembly.
16(Source: P.A. 97-557, eff. 7-1-12.)
 
17    (35 ILCS 200/22-25)
18    Sec. 22-25. Mailed notice. In addition to the notice
19required to be served not less than 3 months nor more than 6
20months prior to the expiration of the period of redemption, the
21purchaser or his or her assignee shall prepare and deliver to
22the clerk of the Circuit Court of the county in which the
23property is located, the notice provided for in this Section,

 

 

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1together with the statutory costs for mailing the notice by
2certified mail, return receipt requested, as provided in
3subsection (e) of Section 21-260. The form of notice to be
4mailed by the clerk shall be identical in form to that provided
5by Section 22-10 for service upon owners residing upon the
6property sold, except that it shall bear the signature of the
7clerk instead of the name of the purchaser or assignee and
8shall designate the parties to whom it is to be mailed. The
9clerk may furnish the form. The clerk shall promptly mail the
10notices delivered to him or her by certified mail, return
11receipt requested. The certificate of the clerk that he or she
12has mailed the notices, together with the return receipts,
13shall be filed in and made a part of the court record. The
14notices shall be mailed to the owners of the property at their
15last known addresses, and to those persons who are entitled to
16service of notice as occupants.
17    The changes to this Section made by this amendatory Act of
18the 97th General Assembly shall be construed as being
19declaratory of existing law and not as a new enactment.
20(Source: P.A. 97-557, eff. 7-1-12.)