98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3535

 

Introduced 2/14/2014, by Sen. Mike Jacobs

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-310

    Amends the Property Tax Code. Provides that, when a court declares a sale in error upon application of the owner of the certificate of purchase, the court shall promptly notify the county collector in writing.


LRB098 19575 HLH 54765 b

 

 

A BILL FOR

 

SB3535LRB098 19575 HLH 54765 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
5Section 21-310 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,

 

 

SB3535- 2 -LRB098 19575 HLH 54765 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

 

 

SB3535- 3 -LRB098 19575 HLH 54765 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    Whenever a court declares a sale in error under this
21subsection (b), the court shall promptly notify the county
22collector in writing.
23    (c) When the county collector discovers, prior to the
24expiration of the period of redemption, that a tax sale should
25not have occurred for one or more of the reasons set forth in
26subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,

 

 

SB3535- 4 -LRB098 19575 HLH 54765 b

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

 

 

SB3535- 5 -LRB098 19575 HLH 54765 b

1clerk shall make entry in the tax judgment, sale, redemption
2and forfeiture record, that the property was erroneously sold,
3and the county collector shall, on demand of the owner of the
4certificate of purchase, refund the amount paid, pay any
5interest and costs as may be ordered under Sections 21-315
6through 21-335, and cancel the certificate so far as it relates
7to the property. The county collector shall deduct from the
8accounts of the appropriate taxing bodies their pro rata
9amounts paid.
10(Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06;
1195-331, eff. 8-21-07.)