103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3028

 

Introduced 2/16/2023, by Rep. Stephanie A. Kifowit

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-310
35 ILCS 200/22-40
35 ILCS 200/22-85

    Amends the Property Tax Code. In provisions concerning the issuance of a tax deed, provides that the court shall find that all forfeitures and sales of the property occurring after the tax sale at which the certificate of purchase was issued and including only subsequent years taxes have been redeemed (currently, all forfeitures and sales that occur subsequent to the sale). Provides that a sale of the property that occurs after the tax sale at which the certificate of purchase was issued and includes only tax years that are prior to the year or years sold, or includes tax years which are both prior to and after the year or years sold, shall be declared a sale in error, and those tax years shall be merged into the tax deed grantee's title. Effective immediately.


LRB103 06054 HLH 51084 b

 

 

A BILL FOR

 

HB3028LRB103 06054 HLH 51084 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
5Sections 21-310, 22-40, and 22-85 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, or an owner of a
11certificate of purchase whose lien is subject to prior tax
12years sold subsequent to its purchase as set forth in
13subsection (b) of Section 22-40, it appears to the
14satisfaction of the court which ordered the property sold that
15any of the following subsections are applicable, the court
16shall declare the sale to be a sale in error:
17        (1) the property was not subject to taxation, or all
18    or any part of the lien of taxes sold has become null and
19    void pursuant to Section 21-95 or unenforceable pursuant
20    to subsection (c) of Section 18-250 or subsection (b) of
21    Section 22-40,
22        (2) the taxes or special assessments had been paid
23    prior to the sale of the property,

 

 

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

 

 

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1subsections are applicable, the court shall declare the sale
2to be a sale in error:
3        (1) A voluntary or involuntary petition under the
4    provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
5    filed subsequent to the tax sale and prior to the issuance
6    of the tax deed.
7        (2) The improvements upon the property sold have been
8    substantially destroyed or rendered uninhabitable or
9    otherwise unfit for occupancy subsequent to the tax sale
10    and prior to the issuance of the tax deed; however, if the
11    court declares a sale in error under this paragraph (2),
12    the court may order the holder of the certificate of
13    purchase to assign the certificate to the county collector
14    if requested by the county collector. The county collector
15    may, upon request of the county, as trustee, or upon
16    request of a taxing district having an interest in the
17    taxes sold, further assign any certificate of purchase
18    received pursuant to this paragraph (2) to the county
19    acting as trustee for taxing districts pursuant to Section
20    21-90 of this Code or to the taxing district having an
21    interest in the taxes sold.
22        (3) There is an interest held by the United States in
23    the property sold which could not be extinguished by the
24    tax deed.
25        (4) The real property contains a hazardous substance,
26    hazardous waste, or underground storage tank that would

 

 

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1    require cleanup or other removal under any federal, State,
2    or local law, ordinance, or regulation, only if the tax
3    purchaser purchased the property without actual knowledge
4    of the hazardous substance, hazardous waste, or
5    underground storage tank. This paragraph (4) applies only
6    if the owner of the certificate of purchase has made
7    application for a sale in error at any time before the
8    issuance of a tax deed. If the court declares a sale in
9    error under this paragraph (4), the court may order the
10    holder of the certificate of purchase to assign the
11    certificate to the county collector if requested by the
12    county collector. The county collector may, upon request
13    of the county, as trustee, or upon request of a taxing
14    district having an interest in the taxes sold, further
15    assign any certificate of purchase received pursuant to
16    this paragraph (4) to the county acting as trustee for
17    taxing districts pursuant to Section 21-90 of this Code or
18    to the taxing district having an interest in the taxes
19    sold.
20    Whenever a court declares a sale in error under this
21subsection (b), the court shall promptly notify the county
22collector in writing. Every such declaration pursuant to any
23provision of this subsection (b) shall be made within the
24proceeding in which the tax sale was authorized.
25    (c) When the county collector discovers, prior to the
26expiration of the period of redemption, that a tax sale should

 

 

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

 

 

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1in Section 21-315, upon surrender of the original certificate
2of purchase.
3    (d) If a sale is declared to be a sale in error, the county
4clerk shall make entry in the tax judgment, sale, redemption
5and forfeiture record, that the property was erroneously sold,
6and the county collector shall, on demand of the owner of the
7certificate of purchase, refund the amount paid, except for
8the nonrefundable $80 fee paid, pursuant to Section 21-295,
9for each item purchased at the tax sale, pay any interest and
10costs as may be ordered under Sections 21-315 through 21-335,
11and cancel the certificate so far as it relates to the
12property. The county collector shall deduct from the accounts
13of the appropriate taxing bodies their pro rata amounts paid.
14Alternatively, for sales in error declared under subsection
15(b)(2) or (b)(4), the county collector may request the circuit
16court to direct the county clerk to record any assignment of
17the tax certificate to or from the county collector without
18charging a fee for the assignment. The owner of the
19certificate of purchase shall receive all statutory refunds
20and payments. The county collector shall deduct costs and
21payments in the same manner as if a sale in error had occurred.
22(Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20;
23101-659, eff. 3-23-21.)
 
24    (35 ILCS 200/22-40)
25    Sec. 22-40. Issuance of deed; possession.

 

 

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1    (a) The court If the redemption period expires and the
2property has not been redeemed and all taxes and special
3assessments which became due and payable subsequent to the
4sale have been paid and all forfeitures and sales which occur
5subsequent to the sale have been redeemed and the notices
6required by law have been given and all advancements of public
7funds under the police power made by a county, city, village or
8town under Section 22-35 have been paid and the petitioner has
9complied with all the provisions of law entitling him or her to
10a deed, the court shall so find and shall enter an order
11directing the county clerk, on the production of the
12certificate of purchase and a certified copy of the order, to
13issue to the purchaser or his or her assignee a tax deed if the
14court finds all of the following: .
15        (1) that the redemption period has expired and the
16    property has not been redeemed;
17        (2) that all taxes and special assessments on the
18    property that became due and payable after the tax sale at
19    which the certificate of purchase was issued have been
20    paid;
21        (3) that all forfeitures and sales of the property
22    that occur after the tax sale at which the certificate of
23    purchase was issued and include only subsequent years
24    taxes have been redeemed;
25        (4) that the notices required by law have been given;
26        (5) that all advancements of public funds under the

 

 

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1    police power made by a county, city, village or town under
2    Section 22-35 have been paid; and
3        (6) that the petitioner has complied with all the
4    provisions of law entitling him or her to a deed.
5    The court shall insist on strict compliance with Section
622-10 through 22-25. Prior to the entry of an order directing
7the issuance of a tax deed, the petitioner shall furnish the
8court with a report of proceedings of the evidence received on
9the application for tax deed and the report of proceedings
10shall be filed and made a part of the court record.
11    (b) If taxes for years prior to the year or years sold are
12or become delinquent subsequent to the date of sale, the court
13shall find that the lien of those delinquent taxes has been or
14will be merged into the tax deed grantee's title if the court
15determines that the tax deed grantee or any prior holder of the
16certificate of purchase, or any person or entity under common
17ownership or control with any such grantee or prior holder of
18the certificate of purchase, was at no time the holder of any
19certificate of purchase for the years sought to be merged. A
20sale of the property that occurs after the tax sale at which
21the certificate of purchase was issued and includes only tax
22years that are prior to the year or years sold, or includes
23both tax years that are prior to the year or years sold and tax
24years that are after the year or years sold, shall be declared
25a sale in error, and those tax years that are included in the
26subsequent sale and are prior to the year or years sold shall

 

 

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1be merged into the tax deed grantee's title if the court
2determines that the tax deed grantee or any prior holder of the
3certificate of purchase, or any person or entity under common
4ownership or control with any such grantee or prior holder of
5the certificate of purchase, was at no time the holder of any
6certificate of purchase for the years sought to be merged. If
7delinquent taxes are merged into the tax deed pursuant to this
8subsection, the court shall enter an order declaring which
9specific taxes have been or will be merged into the tax deed
10title and directing the county treasurer and county clerk to
11reflect that declaration in the warrant and judgment records;
12provided, that no such order shall be effective until a tax
13deed has been issued and timely recorded. Nothing contained in
14this Section shall relieve any owner liable for delinquent
15property taxes under this Code from the payment of the taxes
16that have been merged into the title upon issuance of the tax
17deed.
18    (c) The county clerk is entitled to a fee of $10 in
19counties of 3,000,000 or more inhabitants and $5 in counties
20with less than 3,000,000 inhabitants for the issuance of the
21tax deed. The clerk may not include in a tax deed more than one
22property as listed, assessed and sold in one description,
23except in cases where several properties are owned by one
24person.
25    Upon application the court shall, enter an order to place
26the tax deed grantee or the grantee's successor in interest in

 

 

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1possession of the property and may enter orders and grant
2relief as may be necessary or desirable to maintain the
3grantee or the grantee's successor in interest in possession.
4    (d) The court shall retain jurisdiction to enter orders
5pursuant to subsections (b) and (c) of this Section. This
6amendatory Act of the 92nd General Assembly and this
7amendatory Act of the 95th General Assembly shall be construed
8as being declarative of existing law and not as a new
9enactment.
10(Source: P.A. 98-1162, eff. 6-1-15.)
 
11    (35 ILCS 200/22-85)
12    Sec. 22-85. Failure to timely take out and record deed;
13deed is void. Unless the holder of the certificate purchased
14at any tax sale under this Code takes out the deed in the time
15provided by law, and records the same within one year from and
16after the time for redemption expires, the certificate or
17deed, and the sale on which it is based, shall, after the
18expiration of the one year period, be absolutely void with no
19right to reimbursement. If the holder of the certificate is
20prevented from obtaining or recording a deed by injunction or
21order of any court, or by the refusal or inability of any court
22to act upon the application for a tax deed, or by the refusal
23of the clerk to execute the same deed, or by the refusal,
24inability, or delay of any county, city, village, or
25incorporated town to issue transfer stamps, the time he or she

 

 

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1is so prevented shall be excluded from computation of the one
2year period. Certificates of purchase and deeds executed by
3the clerk shall recite the qualifications required in this
4Section. The court shall retain jurisdiction to enter orders
5pursuant to this Section.
6(Source: P.A. 87-669; 88-455.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.