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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_SB0051eng SB51 Engrossed LRB9101825PTpk 1 AN ACT to amend the Property Tax Code by changing Section 2 21-260. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Property Tax Code is amended by changing 6 Section 21-260 as follows: 7 (35 ILCS 200/21-260) 8 Sec. 21-260. Collector's scavenger sale. Upon the 9 county collector's application under Section 21-145, to be 10 known as the Scavenger Sale Application, the Court shall 11 enter judgment for the general taxes, special taxes, special 12 assessments, interest, penalties and costs as are included in 13 the advertisement and appear to be due thereon after allowing 14 an opportunity to object and a hearing upon the objections as 15 provided in Section 21-175, and order those properties sold 16 by the County Collector at public sale to the highest bidder 17 for cash, notwithstanding the bid may be less than the full 18 amount of taxes, special taxes, special assessments, 19 interest, penalties and costs for which judgment has been 20 entered. 21 (a) Conducting the sale - Bidding. All properties 22 shall be offered for sale in consecutive order as they appear 23 in the delinquent list. The minimum bid for any property 24 shall be $250 or one-half of the tax if the total liability 25 is less than $500. The successful bidder shall immediately 26 pay the amount of minimum bid to the County Collector in 27 cash, by certified or cashier's check,orby money order, or, 28 if the successful bidder is a governmental unit, by a check 29 issued by that governmental unit. If the bid exceeds the 30 minimum bid, the successful bidder shall pay the balance of 31 the bid to the county collector in cash, by certified or SB51 Engrossed -2- LRB9101825PTpk 1 cashier's check,orby money order, or, if the successful 2 bidder is a governmental unit, by a check issued by that 3 governmental unit by the close of the next business day. If 4 the minimum bid is not paid at the time of sale or if the 5 balance is not paid by the close of the next business day, 6 then the sale is void and the minimum bid, if paid, is 7 forfeited to the county general fund. In that event, the 8 property shall be reoffered for sale within 30 days of the 9 last offering of property in regular order. The collector 10 shall make available to the public a list of all properties 11 to be included in any reoffering due to the voiding of the 12 original sale. The collector is not required to serve or 13 publish any other notice of the reoffering of those 14 properties. In the event that any of the properties are not 15 sold upon reoffering, or are sold for less than the amount of 16 the original voided sale, the original bidder who failed to 17 pay the bid amount shall remain liable for the unpaid balance 18 of the bid in an action under Section 21-240. Liability 19 shall not be reduced where the bidder upon reoffering also 20 fails to pay the bid amount, and in that event both bidders 21 shall remain liable for the unpaid balance of their 22 respective bids. A sale of properties under this Section 23 shall not be final until confirmed by the court. 24 (b) Confirmation of sales. The county collector shall 25 file his or her report of sale in the court within 30 days of 26 the date of sale of each property. No notice of the county 27 collector's application to confirm the sales shall be 28 required except as prescribed by rule of the court. Upon 29 confirmation, except in cases where the sale becomes void 30 under Section 22-85, or in cases where the order of 31 confirmation is vacated by the court, a sale under this 32 Section shall extinguish the in rem lien of the general 33 taxes, special taxes and special assessments for which 34 judgment has been entered and a redemption shall not revive SB51 Engrossed -3- LRB9101825PTpk 1 the lien. Confirmation of the sale shall in no event affect 2 the owner's personal liability to pay the taxes, interest and 3 penalties as provided in this Code or prevent institution of 4 a proceeding under Section 21-440 to collect any amount that 5 may remain due after the sale. 6 (c) Issuance of tax sale certificates. Upon confirmation 7 of the sale the County Clerk and the County Collector shall 8 issue to the purchaser a certificate of purchase in the form 9 prescribed by Section 21-250 as near as may be. A 10 certificate of purchase shall not be issued to any person who 11 is ineligible to bid at the sale or to receive a certificate 12 of purchase under Section 21-265. 13 (d) Scavenger Tax Judgment, Sale and Redemption Record - 14 Sale of parcels not sold. The county collector shall prepare 15 a Scavenger Tax Judgment, Sale and Redemption Record. The 16 county clerk shall write or stamp on the scavenger tax 17 judgment, sale, forfeiture and redemption record opposite the 18 description of any property offered for sale and not sold, or 19 not confirmed for any reason, the words "offered but not 20 sold". The properties which are offered for sale under this 21 Section and not sold or not confirmed shall be offered for 22 sale annually thereafter in the manner provided in this 23 Section until sold, except in the case of mineral rights, 24 which after 10 consecutive years of being offered for sale 25 under this Section and not sold or confirmed shall no longer 26 be required to be offered for sale. At any time between 27 annual sales the County Collector may advertise for sale any 28 properties subject to sale under judgments for sale 29 previously entered under this Section and not executed for 30 any reason. The advertisement and sale shall be regulated by 31 the provisions of this Code as far as applicable. 32 (e) Proceeding to tax deed. The owner of the certificate 33 of purchase shall give notice as required by Sections 22-5 34 through 22-30, and may extend the period of redemption as SB51 Engrossed -4- LRB9101825PTpk 1 provided by Section 21-385. At any time within 5 months prior 2 to expiration of the period of redemption from a sale under 3 this Code, the owner of a certificate of purchase may file a 4 petition and may obtain a tax deed under Sections 22-30 5 through 22-55. All proceedings for the issuance of a tax deed 6 and all tax deeds for properties sold under this Section 7 shall be subject to Sections 22-30 through 22-55. Deeds 8 issued under this Section are subject to Section 22-70. This 9 Section shall be liberally construed so that the deeds 10 provided for in this Section convey merchantable title. 11 (f) Redemptions from scavenger sales. Redemptions may be 12 made from sales under this Section in the same manner and 13 upon the same terms and conditions as redemptions from sales 14 made under the County Collector's annual application for 15 judgment and order of sale, except that in lieu of penalty 16 the person redeeming shall pay interest as follows if the 17 sale occurs before September 9, 1993: 18 (1) If redeemed within the first 2 months from the 19 date of the sale, 3% per month or portion thereof upon 20 the amount for which the property was sold; 21 (2) If redeemed between 2 and 6 months from the 22 date of the sale, 12% of the amount for which the 23 property was sold; 24 (3) If redeemed between 6 and 12 months from the 25 date of the sale, 24% of the amount for which the 26 property was sold; 27 (4) If redeemed between 12 and 18 months from the 28 date of the sale, 36% of the amount for which the 29 property was sold; 30 (5) If redeemed between 18 and 24 months from the 31 date of the sale, 48% of the amount for which the 32 property was sold; 33 (6) If redeemed after 24 months from the date of 34 sale, the 48% herein provided together with interest at SB51 Engrossed -5- LRB9101825PTpk 1 6% per year thereafter. 2 If the sale occurs on or after September 9, 1993, the 3 person redeeming shall pay interest on that part of the 4 amount for which the property was sold equal to or less than 5 the full amount of delinquent taxes, special assessments, 6 penalties, interest, and costs, included in the judgment and 7 order of sale as follows: 8 (1) If redeemed within the first 2 months from the 9 date of the sale, 3% per month upon the amount of taxes, 10 special assessments, penalties, interest, and costs due 11 for each of the first 2 months, or fraction thereof. 12 (2) If redeemed at any time between 2 and 6 months 13 from the date of the sale, 12% of the amount of taxes, 14 special assessments, penalties, interest, and costs due. 15 (3) If redeemed at any time between 6 and 12 months 16 from the date of the sale, 24% of the amount of taxes, 17 special assessments, penalties, interest, and costs due. 18 (4) If redeemed at any time between 12 and 18 19 months from the date of the sale, 36% of the amount of 20 taxes, special assessments, penalties, interest, and 21 costs due. 22 (5) If redeemed at any time between 18 and 24 23 months from the date of the sale, 48% of the amount of 24 taxes, special assessments, penalties, interest, and 25 costs due. 26 (6) If redeemed after 24 months from the date of 27 sale, the 48% provided for the 24 months together with 28 interest at 6% per annum thereafter on the amount of 29 taxes, special assessments, penalties, interest, and 30 costs due. 31 The person redeeming shall not be required to pay any 32 interest on any part of the amount for which the property was 33 sold that exceeds the full amount of delinquent taxes, 34 special assessments, penalties, interest, and costs included SB51 Engrossed -6- LRB9101825PTpk 1 in the judgment and order of sale. 2 Notwithstanding any other provision of this Section, 3 except for owner-occupied single family residential units 4 which are condominium units, cooperative units or dwellings, 5 the amount required to be paid for redemption shall also 6 include an amount equal to all delinquent taxes on the 7 property which taxes were delinquent at the time of sale. 8 The delinquent taxes shall be apportioned by the county 9 collector among the taxing districts in which the property is 10 situated in accordance with law. In the event that all moneys 11 received from any sale held under this Section exceed an 12 amount equal to all delinquent taxes on the property sold, 13 which taxes were delinquent at the time of sale, together 14 with all publication and other costs associated with the 15 sale, then, upon redemption, the County Collector and the 16 County Clerk shall apply the excess amount to the cost of 17 redemption. 18 (g) Bidding by county or other taxing districts. Any 19 taxing district may bid at a scavenger sale. The county 20 board of the county in which properties offered for sale 21 under this Section are located may bid as trustee for all 22 taxing districts having an interest in the taxes for the 23 nonpayment of which the parcels are offered. The County shall 24 apply on the bid the unpaid taxes due upon the property and 25 no cash need be paid. The County or other taxing district 26 acquiring a tax sale certificate shall take all steps 27 necessary to acquire title to the property and may manage and 28 operate the property so acquired. 29 When a county, or other taxing district within the 30 county, is a petitioner for a tax deed, no filing fee shall 31 be required on the petition. The county as a tax creditor and 32 as trustee for other tax creditors, or other taxing district 33 within the county shall not be required to allege and prove 34 that all taxes and special assessments which become due and SB51 Engrossed -7- LRB9101825PTpk 1 payable after the sale to the county have been paid. The 2 county shall not be required to pay the subsequently accruing 3 taxes or special assessments at any time. Upon the written 4 request of the county board or its designee, the county 5 collector shall not offer the property for sale at any tax 6 sale subsequent to the sale of the property to the county 7 under this Section. The lien of taxes and special assessments 8 which become due and payable after a sale to a county shall 9 merge in the fee title of the county, or other taxing 10 district, on the issuance of a deed. The County may sell the 11 properties so acquired, or the certificate of purchase 12 thereto, and the proceeds of the sale shall be distributed to 13 the taxing districts in proportion to their respective 14 interests therein. The presiding officer of the county board, 15 with the advice and consent of the County Board, may appoint 16 some officer or person to attend scavenger sales and bid on 17 its behalf. 18 (h) Miscellaneous provisions. In the event that the 19 tract of land or lot sold at any such sale is not redeemed 20 within the time permitted by law and a tax deed is issued, 21 all moneys that may be received from the sale of properties 22 in excess of the delinquent taxes, together with all 23 publication and other costs associated with the sale, shall, 24 upon petition of any interested party to the court that 25 issued the tax deed, be distributed by the County Collector 26 pursuant to order of the court among the persons having legal 27 or equitable interests in the property according to the fair 28 value of their interests in the tract or lot. Section 21-415 29 does not apply to properties sold under this Section. Appeals 30 may be taken from the orders and judgments entered under this 31 Section as in other civil cases. The remedy herein provided 32 is in addition to other remedies for the collection of 33 delinquent taxes. 34 (Source: P.A. 90-514, eff. 8-22-97; 90-655, eff. 7-30-98.)