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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 22-35 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,

 

 

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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

 

 

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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; however, if the
7    court declares a sale in error under this paragraph (2),
8    the court may order the holder of the certificate of
9    purchase to assign the certificate to the county collector
10    if requested by the county collector. The county collector
11    may, upon request of the county, as trustee, or upon
12    request of a taxing district having an interest in the
13    taxes sold, further assign any certificate of purchase
14    received pursuant to this paragraph (2) to the county
15    acting as trustee for taxing districts pursuant to Section
16    21-90 of this Code or to the taxing district having an
17    interest in the taxes sold.
18        (3) There is an interest held by the United States in
19    the property sold which could not be extinguished by the
20    tax deed.
21        (4) The real property contains a hazardous substance,
22    hazardous waste, or underground storage tank that would
23    require cleanup or other removal under any federal, State,
24    or local law, ordinance, or regulation, only if the tax
25    purchaser purchased the property without actual knowledge
26    of the hazardous substance, hazardous waste, or

 

 

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1    underground storage tank. This paragraph (4) applies only
2    if the owner of the certificate of purchase has made
3    application for a sale in error at any time before the
4    issuance of a tax deed. If the court declares a sale in
5    error under this paragraph (4), the court may order the
6    holder of the certificate of purchase to assign the
7    certificate to the county collector if requested by the
8    county collector. The county collector may, upon request of
9    the county, as trustee, or upon request of a taxing
10    district having an interest in the taxes sold, further
11    assign any certificate of purchase received pursuant to
12    this paragraph (4) to the county acting as trustee for
13    taxing districts pursuant to Section 21-90 of this Code or
14    to the taxing district having an interest in the taxes
15    sold.
16    Whenever a court declares a sale in error under this
17subsection (b), the court shall promptly notify the county
18collector in writing. Every such declaration pursuant to any
19provision of this subsection (b) shall be made within the
20proceeding in which the tax sale was authorized.
21    (c) When the county collector discovers, prior to the
22expiration of the period of redemption, that a tax sale should
23not have occurred for one or more of the reasons set forth in
24subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
25the county collector shall notify the last known owner of the
26certificate of purchase by certified and regular mail, or other

 

 

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

 

 

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1and the county collector shall, on demand of the owner of the
2certificate of purchase, refund the amount paid, pay any
3interest and costs as may be ordered under Sections 21-315
4through 21-335, and cancel the certificate so far as it relates
5to the property. The county collector shall deduct from the
6accounts of the appropriate taxing bodies their pro rata
7amounts paid. Alternatively, for sales in error declared under
8subsection (b)(2) or (b)(4), the county collector may request
9the circuit court to direct the county clerk to record any
10assignment of the tax certificate to or from the county
11collector without charging a fee for the assignment. The owner
12of the certificate of purchase shall receive all statutory
13refunds and payments. The county collector shall deduct costs
14and payments in the same manner as if a sale in error had
15occurred.
16(Source: P.A. 100-890, eff. 1-1-19.)
 
17    (35 ILCS 200/22-35)
18    Sec. 22-35. Reimbursement of a county or municipality
19before issuance of tax deed. Except in any proceeding in which
20the tax purchaser is a county acting as a trustee for taxing
21districts as provided in Section 21-90, an order for the
22issuance of a tax deed under this Code shall not be entered
23affecting the title to or interest in any property in which a
24county, city, village or incorporated town has an interest
25under the police and welfare power by advancements made from

 

 

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1public funds, until the purchaser or assignee makes
2reimbursement to the county, city, village or incorporated town
3of the money so advanced or the county, city, village, or town
4waives its lien on the property for the money so advanced.
5However, in lieu of reimbursement or waiver, the purchaser or
6his or her assignee may make application for and the court
7shall order that the tax purchase be set aside as a sale in
8error. A sale in error may not be granted under this Section if
9the lien has been released, satisfied, discharged, or waived. A
10filing or appearance fee shall not be required of a county,
11city, village or incorporated town seeking to enforce its claim
12under this Section in a tax deed proceeding.
13(Source: P.A. 98-1162, eff. 6-1-15.)