Sen. Ram Villivalam

Filed: 3/3/2023

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2020

2    AMENDMENT NO. ______. Amend Senate Bill 2020 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Sections 21-240, 21-310, 21-330, 22-10, 22-35, and 22-50 as
6follows:
 
7    (35 ILCS 200/21-240)
8    Sec. 21-240. Payment for property purchased at tax sale;
9reoffering for sale. Except as otherwise provided below, the
10person purchasing any property, or any part thereof, shall be
11liable to the county for the amount due and shall forthwith pay
12to the county collector the amount charged on the property.
13Upon failure to do so, the amount due shall be recoverable in a
14civil action brought in the name of the People of the State of
15Illinois in any court of competent jurisdiction. The person so
16purchasing shall be relieved of liability only by payment of

 

 

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1the amount due together with interest and costs thereon, or if
2the property is reoffered at the sale, purchased and paid for.
3Reoffering of the property for sale shall be at the discretion
4of the collector. The sale shall not be closed until payment is
5made or the property again offered for sale. In counties with
63,000,000 or more inhabitants, only the taxes, special
7assessments, interest and costs as advertised in the sale
8shall be required to be paid forthwith. The general taxes
9charged on the land remaining due and unpaid, including
10amounts subject to certificates of error, not included in the
11advertisement, shall be paid by the purchaser within 10 days
12after the sale, except that upon payment of the fee provided by
13law to the County Clerk (which fee shall be deemed part of the
14costs of sale) the purchaser may make written application,
15within the 10 day period, to the county clerk for a statement
16of all taxes, interest and costs due and an estimate of the
17cost of redemption of all forfeited general taxes, which were
18not included in the advertisement. After obtaining such
19statement and estimate and an order on the county collector to
20receive the amount of forfeited general taxes, if any, the
21purchaser shall pay to the county collector all the remaining
22taxes, interest and costs, and the amount necessary to redeem
23the forfeited general taxes. The county collector shall issue
24the purchaser a receipt therefor. Any delay in providing the
25statement or in accepting payment, and delivering receipt
26therefor, shall not be counted as a part of the 10 days. When

 

 

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1the receipt of the collector is issued, a copy shall be filed
2with the county clerk and the county clerk shall include the
3amount shown in such receipt in the amount of the purchase
4price of the property in the certificate of purchase. The
5purchaser then shall be entitled to a certificate of purchase.
6If a purchaser fails to complete his or her purchase as
7provided in this Section, the purchase shall become void, and
8be of no effect, but the collector shall not refund the amount
9paid in cash at the time of the sale, except in cases of sale
10in error under subsection (a) of Section 21-310. That amount
11shall be treated as a payment and distributed to the taxing
12bodies as other collections are distributed. The lien for
13taxes for the amount paid shall remain on the property, in
14favor of the purchaser, his or her heirs or assigns, until paid
15with 5% interest per year on that amount from the date the
16purchaser paid it. The amount and fact of such ineffective
17purchase shall be entered in the tax judgment, sale,
18redemption and forfeiture record opposite the property upon
19which the lien remains. No redemption shall be made without
20payment of this amount for the benefit of the purchaser, and no
21future sale of the property shall be made except subject to the
22lien of such purchaser. This section shall not apply to any
23purchase by any city, village or incorporated town in default
24of other bidders at any sale for delinquent special
25assessments.
26(Source: P.A. 84-1308; 88-455.)
 

 

 

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1    (35 ILCS 200/21-310)
2    Sec. 21-310. Sales in error.
3    (a) When, upon application of the county collector, the
4owner of the certificate of purchase, or a municipality which
5owns or has owned the property ordered sold, it appears to the
6satisfaction of the court which ordered the property sold that
7any of the following subsections are applicable, the court
8shall declare the sale to be a sale in error:
9        (1) the property was not subject to taxation, or all
10    or any part of the lien of taxes sold has become null and
11    void pursuant to Section 21-95 or unenforceable pursuant
12    to subsection (c) of Section 18-250 or subsection (b) of
13    Section 22-40; ,
14        (2) the taxes or special assessments had been paid
15    prior to the sale of the property; ,
16        (3) there is a double assessment; ,
17        (4) the description is void for uncertainty; ,
18        (5) the assessor, chief county assessment officer,
19    board of review, board of appeals, or other county
20    official has made an error material to the tax sale at
21    issue (other than an error of judgment as to the value of
22    any property or an error in the description of the
23    physical characteristics, location, or picture of the
24    property); ,
25        (5.5) the owner of the homestead property had tendered

 

 

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1    timely and full payment to the county collector that the
2    owner reasonably believed was due and owing on the
3    homestead property, and the county collector did not apply
4    the payment to the homestead property; provided that this
5    provision applies only to homeowners, not their agents or
6    third-party payors; ,
7        (6) prior to the tax sale a voluntary or involuntary
8    petition has been filed by or against the legal or
9    beneficial owner of the property requesting relief under
10    the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13, the
11    property is subject to an automatic stay pursuant to that
12    petition, and that stay is active on the date of that sale;
13        (7) the property is owned by the United States, the
14    State of Illinois, a municipality, or a taxing district; ,
15    or
16        (8) the owner of the property is a reservist or
17    guardsperson who is granted an extension of his or her due
18    date under Sections 21-15, 21-20, and 21-25 of this Act.
19    (b) When, upon application of the owner of the certificate
20of purchase only, it appears to the satisfaction of the court
21which ordered the property sold that any of the following
22subsections are applicable, the court shall declare the sale
23to be a sale in error:
24        (1) (Blank). A voluntary or involuntary petition under
25    the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has
26    been filed subsequent to the tax sale and prior to the

 

 

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

 

 

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

 

 

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1that the county collector intends to declare an administrative
2sale in error and of the reasons therefor, including
3documentation sufficient to establish the reason why the sale
4should not have occurred. The owner of the certificate of
5purchase may object in writing within 28 days after the date of
6the mailing by the county collector. If an objection is filed,
7the county collector shall not administratively declare a sale
8in error, but may apply to the circuit court for a sale in
9error as provided in subsection (a) of this Section. Thirty
10days following the receipt of notice by the last known owner of
11the certificate of purchase, or within a reasonable time
12thereafter, the county collector shall make a written
13declaration, based upon clear and convincing evidence, that
14the taxes were sold in error and shall deliver a copy thereof
15to the county clerk within 30 days after the date the
16declaration is made for entry in the tax judgment, sale,
17redemption, and forfeiture record pursuant to subsection (d)
18of this Section. The county collector shall promptly notify
19the last known owner of the certificate of purchase of the
20declaration by regular mail and shall promptly pay the amount
21of the tax sale, together with interest and costs as provided
22in Section 21-315, upon surrender of the original certificate
23of 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, except for
3the nonrefundable $80 fee paid, pursuant to Section 21-295,
4for each item purchased at the tax sale, pay any interest and
5costs as may be ordered under Sections 21-315 through 21-335,
6and cancel the certificate so far as it relates to the
7property. The county collector shall deduct from the accounts
8of the appropriate taxing bodies their pro rata amounts paid.
9Alternatively, for sales in error declared under subsection
10(b)(2) or (b)(4), the county collector may request the circuit
11court to direct the county clerk to record any assignment of
12the tax certificate to or from the county collector without
13charging a fee for the assignment. The owner of the
14certificate of purchase shall receive all statutory refunds
15and payments. The county collector shall deduct costs and
16payments in the same manner as if a sale in error had occurred.
17(Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20;
18101-659, eff. 3-23-21.)
 
19    (35 ILCS 200/21-330)
20    Sec. 21-330. Fund for payment of interest. In all counties
21of less than 3,000,000 inhabitants, the county board, by
22resolution, may impose a fee for payment of interest and
23costs. Each person purchasing any property at a sale under
24this Code shall pay to the county collector, prior to the
25issuance of any certificate of purchase, a fee of up to $60 for

 

 

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1each item purchased. Each person purchasing any property at a
2sale held under this Code in a county with 3,000,000 or more
3inhabitants shall pay to the county collector, prior to the
4issuance of any certificate of purchase, a nonrefundable fee
5of $100 for each item purchased. That amount shall be included
6in the price paid for the certificate of purchase and the
7amount required to redeem under Section 21-355.
8    All sums of money received under this Section shall be
9paid by the collector to the county treasurer of the county in
10which the property is situated for deposit into a special
11fund. It shall be the duty of the county treasurer, as trustee
12of the fund, to invest the principal and income of the fund
13from time to time, if not immediately required for payments
14under this Section, in investments as are authorized by
15Sections 3-10009 and 3-11002 of the Counties Code. The fund
16shall be held to pay interest and costs by the county treasurer
17as trustee of the fund. No payment shall be made from the fund
18except by order of the court declaring a sale in error under
19Section 21-310, 22-35, or 22-50 or by declaration of the
20county collector under subsection (c) of Section 21-310. Any
21moneys accumulated in the fund by the county treasurer in
22excess of (i) $100,000 in counties with 250,000 or less
23inhabitants or (ii) $500,000 in counties with more than
24250,000 inhabitants shall be paid each year prior to the
25commencement of the annual tax sale, first to satisfy any
26existing unpaid judgments entered pursuant to Section 21-295,

 

 

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1and any funds remaining thereafter shall be paid to the
2general fund of the county.
3(Source: P.A. 100-1070, eff. 1-1-19.)
 
4    (35 ILCS 200/22-10)
5    Sec. 22-10. Notice of expiration of period of redemption.
6A purchaser or assignee shall not be entitled to a tax deed to
7the property sold unless, not less than 3 months nor more than
86 months prior to the expiration of the period of redemption,
9he or she gives notice of the sale and the date of expiration
10of the period of redemption to the owners, occupants, and
11parties interested in the property, including any mortgagee of
12record, as provided below. The purchaser or assignee shall
13deliver the notice of the expiration of the period of
14redemption to the sheriff of the county in which the property
15is located not less than 5 months prior to the expiration of
16the period of redemption. If service is made by the coroner or
17by a person who is licensed or registered as a private
18detective under the Private Detective, Private Alarm, Private
19Security, Fingerprint Vendor, and Locksmith Act of 2004 under
20the circumstances described in Section 22-15 for service by
21those persons, then the notice of expiration of the period of
22redemption shall be delivered to the coroner or the private
23detective, as applicable, instead of to the sheriff. the
24    The Notice to be given to the parties shall be in at least
2510-point 10 point type in the following form completely filled

 

 

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1in:
2TAX DEED NO. .................... FILED ....................
3
TAKE NOTICE
4    County of ...............................................
5    Date Premises Sold ......................................
6    Certificate No. ........................................
7    Sold for General Taxes of (year) ........................
8    Sold for Special Assessment of (Municipality)
9    and special assessment number ...........................
10    Warrant No. ................ Inst. No. .................
11
THIS PROPERTY HAS BEEN SOLD FOR
12
DELINQUENT TAXES
13Property located at .........................................
14Legal Description or Property Index No. .....................
15.............................................................
16.............................................................
17    This notice is to advise you that the above property has
18been sold for delinquent taxes and that the period of
19redemption from the sale will expire on .....................
20.............................................................
21    The amount to redeem is subject to increase at 6 month
22intervals from the date of sale and may be further increased if
23the purchaser at the tax sale or his or her assignee pays any
24subsequently accruing taxes or special assessments to redeem
25the property from subsequent forfeitures or tax sales. Check
26with the county clerk as to the exact amount you owe before

 

 

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1redeeming.
2    This notice is also to advise you that a petition has been
3filed for a tax deed which will transfer title and the right to
4possession of this property if redemption is not made on or
5before ......................................................
6    This matter is set for hearing in the Circuit Court of this
7county in ...., Illinois on .....
8    You may be present at this hearing but your right to redeem
9will already have expired at that time.
10
YOU ARE URGED TO REDEEM IMMEDIATELY
11
TO PREVENT LOSS OF PROPERTY
12    Redemption can be made at any time on or before .... by
13applying to the County Clerk of ...., County, Illinois at the
14Office of the County Clerk in ...., Illinois.
15    For further information contact the County Clerk
16ADDRESS:....................
17TELEPHONE:..................
 
18
..........................
19
Purchaser or Assignee.
20
Dated (insert date).

 
21    In counties with 3,000,000 or more inhabitants, the notice
22shall also state the address, room number, and time at which
23the matter is set for hearing.
24    The changes to this Section made by Public Act 97-557

 

 

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1apply only to matters in which a petition for tax deed is filed
2on or after July 1, 2012 (the effective date of Public Act
397-557).
4    The changes to this Section made by Public Act 102-1003
5this amendatory Act of the 102nd General Assembly apply to
6matters in which a petition for tax deed is filed on or after
7May 27, 2022 (the effective date of Public Act 102-1003) this
8amendatory Act of the 102nd General Assembly. Failure of any
9party or any public official to comply with the changes made to
10this Section by Public Act 102-528 does not invalidate any tax
11deed issued prior to May 27, 2022 (the effective date of Public
12Act 102-1003) this amendatory Act of the 102nd General
13Assembly.
14(Source: P.A. 102-528, eff. 1-1-22; 102-813, eff. 5-13-22;
15102-1003, eff. 5-27-22; revised 9-1-22.)
 
16    (35 ILCS 200/22-35)
17    Sec. 22-35. Reimbursement of a county or municipality
18before issuance of tax deed. Except in any proceeding in which
19the tax purchaser is a county acting as a trustee for taxing
20districts as provided in Section 21-90, an order for the
21issuance of a tax deed under this Code shall not be entered
22affecting the title to or interest in any property in which a
23county, city, village or incorporated town has an interest
24under the police and welfare power by advancements made from
25public funds, until the purchaser or assignee makes

 

 

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1reimbursement to the county, city, village or incorporated
2town of the money so advanced or the county, city, village, or
3town waives its lien on the property for the money so advanced.
4However, in lieu of reimbursement or waiver, the purchaser or
5his or her assignee may make application for and the court
6shall order that the tax purchase be set aside as a sale in
7error, except in cases where the tax purchaser holds a lien
8that shall remain on the property until paid with 5% interest
9per year as provided in Section 21-240. A sale in error may not
10be granted under this Section if the lien has been released,
11satisfied, discharged, or waived. A filing or appearance fee
12shall not be required of a county, city, village or
13incorporated town seeking to enforce its claim under this
14Section in a tax deed proceeding.
15(Source: P.A. 101-379, eff. 1-1-20.)
 
16    (35 ILCS 200/22-50)
17    Sec. 22-50. Denial of deed. If the court refuses to enter
18an order directing the county clerk to execute and deliver the
19tax deed, because of the failure of the purchaser to fulfill
20any of the above provisions, and if the purchaser, or his or
21her assignee has made a bona fide attempt to comply with the
22statutory requirements for the issuance of the tax deed, then
23upon application of the owner of the certificate of purchase
24the court shall declare the sale to be a sale in error, unless
25the purchaser failed to comply with any of the above

 

 

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1provisions for obtaining a tax deed because the purchaser made
2a reasonably avoidable error.
3(Source: P.A. 92-224, eff. 1-1-02.)".