Sen. Jason A. Barickman

Filed: 5/2/2019





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2    AMENDMENT NO. ______. Amend House Bill 250 on page 1, line
35, by replacing "Section 21-115" with "Sections 21-115, 21-310,
4and 22-35"; and
5on page 2, immediately below line 19, by inserting the
7    "(35 ILCS 200/21-310)
8    Sec. 21-310. Sales in error.
9    (a) When, upon application of the county collector, the
10owner of the certificate of purchase, or a municipality which
11owns or has owned the property ordered sold, it appears to the
12satisfaction of the court which ordered the property sold that
13any of the following subsections are applicable, the court
14shall declare the sale to be a sale in error:
15        (1) the property was not subject to taxation, or all or
16    any part of the lien of taxes sold has become null and void



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1    pursuant to Section 21-95 or unenforceable pursuant to
2    subsection (c) of Section 18-250 or subsection (b) of
3    Section 22-40,
4        (2) the taxes or special assessments had been paid
5    prior to the sale of the property,
6        (3) there is a double assessment,
7        (4) the description is void for uncertainty,
8        (5) the assessor, chief county assessment officer,
9    board of review, board of appeals, or other county official
10    has made an error (other than an error of judgment as to
11    the value of any property),
12        (5.5) the owner of the homestead property had tendered
13    timely and full payment to the county collector that the
14    owner reasonably believed was due and owing on the
15    homestead property, and the county collector did not apply
16    the payment to the homestead property; provided that this
17    provision applies only to homeowners, not their agents or
18    third-party payors,
19        (6) prior to the tax sale a voluntary or involuntary
20    petition has been filed by or against the legal or
21    beneficial owner of the property requesting relief under
22    the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
23        (7) the property is owned by the United States, the
24    State of Illinois, a municipality, or a taxing district, or
25        (8) the owner of the property is a reservist or
26    guardsperson who is granted an extension of his or her due



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1    date under Sections 21-15, 21-20, and 21-25 of this Act.
2    (b) When, upon application of the owner of the certificate
3of purchase only, it appears to the satisfaction of the court
4which ordered the property sold that any of the following
5subsections are applicable, the court shall declare the sale to
6be a sale in error:
7        (1) A voluntary or involuntary petition under the
8    provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
9    filed subsequent to the tax sale and prior to the issuance
10    of the tax deed.
11        (2) The improvements upon the property sold have been
12    substantially destroyed or rendered uninhabitable or
13    otherwise unfit for occupancy subsequent to the tax sale
14    and prior to the issuance of the tax deed; however, if the
15    court declares a sale in error under this paragraph (2),
16    the court may order the holder of the certificate of
17    purchase to assign the certificate to the county collector
18    if requested by the county collector. The county collector
19    may, upon request of the county, as trustee, or upon
20    request of a taxing district having an interest in the
21    taxes sold, further assign any certificate of purchase
22    received pursuant to this paragraph (2) to the county
23    acting as trustee for taxing districts pursuant to Section
24    21-90 of this Code or to the taxing district having an
25    interest in the taxes sold.
26        (3) There is an interest held by the United States in



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1    the property sold which could not be extinguished by the
2    tax deed.
3        (4) The real property contains a hazardous substance,
4    hazardous waste, or underground storage tank that would
5    require cleanup or other removal under any federal, State,
6    or local law, ordinance, or regulation, only if the tax
7    purchaser purchased the property without actual knowledge
8    of the hazardous substance, hazardous waste, or
9    underground storage tank. This paragraph (4) applies only
10    if the owner of the certificate of purchase has made
11    application for a sale in error at any time before the
12    issuance of a tax deed. If the court declares a sale in
13    error under this paragraph (4), the court may order the
14    holder of the certificate of purchase to assign the
15    certificate to the county collector if requested by the
16    county collector. The county collector may, upon request of
17    the county, as trustee, or upon request of a taxing
18    district having an interest in the taxes sold, further
19    assign any certificate of purchase received pursuant to
20    this paragraph (4) to the county acting as trustee for
21    taxing districts pursuant to Section 21-90 of this Code or
22    to the taxing district having an interest in the taxes
23    sold.
24    Whenever a court declares a sale in error under this
25subsection (b), the court shall promptly notify the county
26collector in writing. Every such declaration pursuant to any



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



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1The county collector shall promptly notify the last known owner
2of the certificate of purchase of the declaration by regular
3mail and shall promptly pay the amount of the tax sale,
4together with interest and costs as provided in Section 21-315,
5upon surrender of the original certificate of purchase.
6    (d) If a sale is declared to be a sale in error, the county
7clerk shall make entry in the tax judgment, sale, redemption
8and forfeiture record, that the property was erroneously sold,
9and the county collector shall, on demand of the owner of the
10certificate of purchase, refund the amount paid, pay any
11interest and costs as may be ordered under Sections 21-315
12through 21-335, and cancel the certificate so far as it relates
13to the property. The county collector shall deduct from the
14accounts of the appropriate taxing bodies their pro rata
15amounts paid. Alternatively, for sales in error declared under
16subsection (b)(2) or (b)(4), the county collector may request
17the circuit court to direct the county clerk to record any
18assignment of the tax certificate to or from the county
19collector without charging a fee for the assignment. The owner
20of the certificate of purchase shall receive all statutory
21refunds and payments. The county collector shall deduct costs
22and payments in the same manner as if a sale in error had
24(Source: P.A. 100-890, eff. 1-1-19.)
25    (35 ILCS 200/22-35)



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1    Sec. 22-35. Reimbursement of a county or municipality
2before issuance of tax deed. Except in any proceeding in which
3the tax purchaser is a county acting as a trustee for taxing
4districts as provided in Section 21-90, an order for the
5issuance of a tax deed under this Code shall not be entered
6affecting the title to or interest in any property in which a
7county, city, village or incorporated town has an interest
8under the police and welfare power by advancements made from
9public funds, until the purchaser or assignee makes
10reimbursement to the county, city, village or incorporated town
11of the money so advanced or the county, city, village, or town
12waives its lien on the property for the money so advanced.
13However, in lieu of reimbursement or waiver, the purchaser or
14his or her assignee may make application for and the court
15shall order that the tax purchase be set aside as a sale in
16error. A sale in error may not be granted under this Section if
17the lien has been released, satisfied, discharged, or waived. A
18filing or appearance fee shall not be required of a county,
19city, village or incorporated town seeking to enforce its claim
20under this Section in a tax deed proceeding.
21(Source: P.A. 98-1162, eff. 6-1-15.)".