State of Illinois
91st General Assembly
Legislation

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]



91_SB0560

 
                                               LRB9103144PTmb

 1        AN  ACT  to  amend  the  Property  Tax  Code  by changing
 2    Sections 21-295 and 21-305 and adding Section 21-397.

 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    Sections 21-295 and  21-305  and  adding  Section  21-397  as
 7    follows:

 8        (35 ILCS 200/21-295)
 9        Sec. 21-295. Creation of indemnity fund.
10        (a)  In counties of less than 3,000,000 inhabitants, each
11    person  purchasing  any  property  at  a sale under this Code
12    shall pay to the County Collector, prior to the  issuance  of
13    any  certificate  of  purchase,  a  fee  of $20 for each item
14    purchased in counties of less than 3,000,000 inhabitants  and
15    $80  in  counties  of  3,000,000 or more inhabitants.  In all
16    counties, A like sum shall be paid for each year that all  or
17    a  portion  of an installment of subsequent taxes, or portion
18    thereof is are paid by the tax purchaser and  posted  to  the
19    tax  judgment,  sale,  redemption and forfeiture record where
20    the underlying certificate  of  purchase  is  recorded.   The
21    amount  paid prior to issuance of the certificate of purchase
22    shall be included in the purchase price of  the  property  in
23    the  certificate  of purchase and all amounts paid under this
24    subsection shall be included in the amount required to redeem
25    under Section 21-355.
26        (a-5)  In counties of 3,000,000 or more inhabitants, each
27    person purchasing taxes at an annual or forfeiture sale under
28    this Code shall pay to the County Collector a fee of  10%  of
29    total  taxes  paid,  including taxes paid pursuant to Section
30    21-240  of  this  Code.   In  these  counties,  each   person
31    purchasing  at a scavenger sale under this Code shall pay 10%
 
                            -2-                LRB9103144PTmb
 1    of the total tax due or the bid amount,  whichever  is  less.
 2    In  these  counties, the certificate holder shall also pay to
 3    the County Collector a fee of 10%  of  all  subsequent  taxes
 4    paid  and  posted  to the tax judgment, sale, redemption, and
 5    forfeiture  record  where  the  underlying   certificate   of
 6    purchase is recorded.
 7        (b)  The amount paid prior to issuance of the certificate
 8    of  purchase  pursuant  to  subsection  (a) or (a-5) shall be
 9    included in  the  purchase  price  of  the  property  in  the
10    certificate  of  purchase  and  all  amounts  paid under this
11    Section shall be included in the amount  required  to  redeem
12    under   Section  21-355.  Except  as  otherwise  provided  in
13    subsection (b) of Section 21-300, all  money  received  under
14    subsection (a) or (a-5) shall be paid by the Collector to the
15    County Treasurer of the County in which the land is situated,
16    for  the  purpose of an indemnity fund. The County Treasurer,
17    as trustee of that fund,  shall  invest  all  of  that  fund,
18    principal  and income, in his or her hands from time to time,
19    if not immediately required for payments of indemnities under
20    subsection (a) of Section 21-305, in investments permitted by
21    the Illinois State Board of Investment under Article  22A  of
22    the Illinois Pension Code.  The county collector shall report
23    annually  to the Circuit Court on the condition and income of
24    the fund.  The  indemnity  fund  shall  be  held  to  satisfy
25    judgments  obtained  against the County Treasurer, as trustee
26    of the fund. No payment shall be made from the  fund,  except
27    upon  a judgment of the court which ordered the issuance of a
28    tax deed.
29    (Source: P.A. 86-1028; 86-1431; 88-455.)

30        (35 ILCS 200/21-305)
31        Sec. 21-305. Payments from Indemnity Fund.
32        (a)  Any owner of property sold under  any  provision  of
33    this  Code, who without fault or negligence of his or her own
 
                            -3-                LRB9103144PTmb
 1    sustains loss or damage by reason of the issuance  of  a  tax
 2    deed  under  Sections 22-40 or 21-445 and who is barred or in
 3    any way precluded from bringing an action for the recovery of
 4    the property, or any owner of property containing 4  or  less
 5    dwelling units who resided thereon the last day of the period
 6    of  redemption  who, in the opinion of the Court which issued
 7    the  tax  deed  order,  is   equitably   entitled   to   just
 8    compensation  and  who  is  barred  or  in any way precluded,
 9    including, without limiting the generality of the  foregoing,
10    by economic matters, from bringing an action for the recovery
11    of  the  property, has the right to indemnity for the loss or
12    damage sustained. Indemnity shall be limited to the fair cash
13    value of the property as of the date that the  tax  deed  was
14    issued,  less  any  mortgages  or  liens  thereon. Except for
15    property containing 4 or fewer dwelling  units  on  which  an
16    owner  resided  on  the last day of the period of redemption,
17    the  indemnity  judgment  shall  be  reduced  by  the  amount
18    necessary to redeem the property from the sale as of the last
19    day of the period of  redemption  and  all  other  taxes  and
20    penalties  paid  by  the tax purchaser or his or her assignee
21    prior to the issuance of the tax deed.
22        (b)  Any  person  claiming  indemnity   hereunder   shall
23    petition the Court which ordered the tax deed to issue, shall
24    name  the County Treasurer, as Trustee of the indemnity fund,
25    as defendant to the petition, and shall ask that judgment  be
26    entered  against  the  County  Treasurer,  as Trustee, in the
27    amount of the indemnity sought.  The provisions of the  Civil
28    Practice  Law  shall apply to proceedings under the petition,
29    except that neither the petitioner nor County Treasurer shall
30    be entitled to trial by jury on the issues presented  in  the
31    petition.  The Court shall liberally construe this Section to
32    provide compensation wherever in the discretion of the  Court
33    the  equities  warrant  such action. The County Treasurer, as
34    Trustee of the indemnity fund, shall  be  subrogated  to  all
 
                            -4-                LRB9103144PTmb
 1    parties  in  whose favor judgment may be rendered against him
 2    or her,  and by third party  complaint  may  bring  in  as  a
 3    defendant  a  person, other than the tax deed grantee and its
 4    successors in title, not a party to the action who is or  may
 5    be  liable to him or her, as subrogee, for all or part of the
 6    petitioner's claim against him or her.
 7    (Source: P.A. 86-1028; 86-1431; 88-455.)

 8        (35 ILCS 200/21-397 new)
 9        Sec. 21-397. Notice of order setting aside redemption. In
10    counties with 3,000,000 or more inhabitants, if an  order  is
11    entered  setting  aside  a  redemption  made  within the time
12    allowed by law after a petition for tax deed has been  filed,
13    the  holder  of the certificate of purchase shall mail a copy
14    of the  order  within  7  days  of  entry  of  the  order  by
15    registered  or  certified  mail  to  the county clerk, to the
16    person who made the redemption, and to all  parties  entitled
17    to  notice  of  the  petition  under Section 22-10, 22-15, or
18    22-25. The order  shall  provide  that  any  person  who  was
19    entitled to redeem may pay to the county clerk within 30 days
20    of  entry  of  the  order  the amount necessary to redeem the
21    property from the sale as of the last day of  the  period  of
22    redemption.  The  county  clerk  shall  make  an entry in the
23    annual tax judgment, sale, redemption, and forfeiture  record
24    reflecting  the entry of the order and shall immediately upon
25    request provide an estimate of the amount required to  effect
26    a redemption as of the last date of the period of redemption.
27    If  the  amount  is  paid  within  30 days after entry of the
28    order, then the court shall  enter  an  order  declaring  the
29    taxes  to be paid as if the property had been redeemed within
30    the time required by law and dismissing the petition for  tax
31    deed.   A  tax  deed  shall  not  be issued within the 30-day
32    period.  Upon surrender of the certificate of  purchase,  the
33    county  clerk  shall  distribute  the funds deposited as if a
 
                            -5-                LRB9103144PTmb
 1    timely redemption had been made. This Section applies to  all
 2    redemptions  that  occur  after  the  effective  date of this
 3    amendatory Act of the 91st General Assembly.

[ Top ]