97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1225

 

Introduced 02/08/11, by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-310
35 ILCS 200/22-40

    Amends the Property Tax Code. In a provision setting forth requirements for the issuance of a tax deed, provides that the requirement that all forfeitures and sales occurring subsequent to the tax sale must be redeemed applies only to forfeitures and sales of subsequent years' taxes. Provides that liens for delinquent taxes must be merged into the tax deed grantee's title even if the liens are included in a subsequent sale. Makes corresponding changes in a Section concerning sales in error. Provides that the amendatory Act is declarative of existing law.


LRB097 09498 HLH 49635 b

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

 

 

A BILL FOR

 

HB1225LRB097 09498 HLH 49635 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 22-40 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 has or will become null
18    and void pursuant to subsection (b) of 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,

 

 

HB1225- 2 -LRB097 09498 HLH 49635 b

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

 

 

HB1225- 3 -LRB097 09498 HLH 49635 b

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.
7        (3) There is an interest held by the United States in
8    the property sold which could not be extinguished by the
9    tax deed.
10        (4) The real property contains a hazardous substance,
11    hazardous waste, or underground storage tank that would
12    require cleanup or other removal under any federal, State,
13    or local law, ordinance, or regulation, only if the tax
14    purchaser purchased the property without actual knowledge
15    of the hazardous substance, hazardous waste, or
16    underground storage tank. This paragraph (4) applies only
17    if the owner of the certificate of purchase has made
18    application for a sale in error at any time before the
19    issuance of a tax deed.
20    (c) When the county collector discovers, prior to the
21expiration of the period of redemption, that a tax sale should
22not have occurred for one or more of the reasons set forth in
23subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
24the county collector shall notify the last known owner of the
25certificate of purchase by certified and regular mail, or other
26means reasonably calculated to provide actual notice, that the

 

 

HB1225- 4 -LRB097 09498 HLH 49635 b

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

 

 

HB1225- 5 -LRB097 09498 HLH 49635 b

1certificate of purchase, refund the amount paid, pay any
2interest and costs as may be ordered under Sections 21-315
3through 21-335, and cancel the certificate so far as it relates
4to the property. The county collector shall deduct from the
5accounts of the appropriate taxing bodies their pro rata
6amounts paid.
7(Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06;
895-331, eff. 8-21-07.)
 
9    (35 ILCS 200/22-40)
10    Sec. 22-40. Issuance of deed; possession.
11    (a) If the redemption period expires and the property has
12not been redeemed and all taxes and special assessments which
13became due and payable subsequent to the sale have been paid
14and all forfeitures and sales of only subsequent years' taxes
15which occur subsequent to the sale have been redeemed and the
16notices required by law have been given and all advancements of
17public funds under the police power made by a city, village or
18town under Section 22-35 have been paid and the petitioner has
19complied with all the provisions of law entitling him or her to
20a deed, the court shall so find and shall enter an order
21directing the county clerk on the production of the certificate
22of purchase and a certified copy of the order, to issue to the
23purchaser or his or her assignee a tax deed. The court shall
24insist on strict compliance with Section 22-10 through 22-25.
25Prior to the entry of an order directing the issuance of a tax

 

 

HB1225- 6 -LRB097 09498 HLH 49635 b

1deed, the petitioner shall furnish the court with a report of
2proceedings of the evidence received on the application for tax
3deed and the report of proceedings shall be filed and made a
4part of the court record.
5    (b) If taxes for years prior to any the year or years sold
6are or become delinquent subsequent to the date of sale, the
7court shall find that the lien of those delinquent taxes, even
8if included in a subsequent sale, has been or will be merged
9into the tax deed grantee's title if the court determines that
10the tax deed grantee or any prior holder of the certificate of
11purchase, or any person or entity under common ownership or
12control with any such grantee or prior holder of the
13certificate of purchase, was at no time the holder of any
14certificate of purchase for the years sought to be merged. If
15delinquent taxes are merged into the tax deed pursuant to this
16subsection, the court shall enter an order declaring which
17specific taxes have been or will be merged into the tax deed
18title and directing the county treasurer and county clerk to
19reflect that declaration in the warrant and judgment records;
20provided, that no such order shall be effective until a tax
21deed has been issued and timely recorded. Nothing contained in
22this Section shall relieve any owner liable for delinquent
23property taxes under this Code from the payment of the taxes
24that have been merged into the title upon issuance of the tax
25deed.
26    (c) The county clerk is entitled to a fee of $10 in

 

 

HB1225- 7 -LRB097 09498 HLH 49635 b

1counties of 3,000,000 or more inhabitants and $5 in counties
2with less than 3,000,000 inhabitants for the issuance of the
3tax deed. The clerk may not include in a tax deed more than one
4property as listed, assessed and sold in one description,
5except in cases where several properties are owned by one
6person.
7    Upon application the court shall, enter an order to place
8the tax deed grantee or the grantee's successor in interest in
9possession of the property and may enter orders and grant
10relief as may be necessary or desirable to maintain the grantee
11or the grantee's successor in interest in possession.
12    (d) The court shall retain jurisdiction to enter orders
13pursuant to subsections (b) and (c) of this Section. This
14amendatory Act of the 92nd General Assembly, and this
15amendatory Act of the 95th General Assembly, and this
16amendatory Act of the 97th General Assembly shall be construed
17as being declarative of existing law and not as a new
18enactment.
19(Source: P.A. 95-477, eff. 6-1-08.)