98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0126

 

Introduced 1/10/2013, by Rep. Jehan A. Gordon

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-260

    Amends the Property Tax Code. In a Section concerning scavenger sales, provides that any taxing district in which the property is located (instead of the county only) may bid as trustee for all taxing districts and no cash need be paid. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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
5Section 21-260 as follows:
 
6    (35 ILCS 200/21-260)
7    Sec. 21-260. Collector's scavenger sale. Upon the county
8collector's application under Section 21-145, to be known as
9the Scavenger Sale Application, the Court shall enter judgment
10for the general taxes, special taxes, special assessments,
11interest, penalties and costs as are included in the
12advertisement and appear to be due thereon after allowing an
13opportunity to object and a hearing upon the objections as
14provided in Section 21-175, and order those properties sold by
15the County Collector at public sale to the highest bidder for
16cash, notwithstanding the bid may be less than the full amount
17of taxes, special taxes, special assessments, interest,
18penalties and costs for which judgment has been entered.
19    (a) Conducting the sale - Bidding. All properties shall be
20offered for sale in consecutive order as they appear in the
21delinquent list. The minimum bid for any property shall be $250
22or one-half of the tax if the total liability is less than
23$500. The successful bidder shall immediately pay the amount of

 

 

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1minimum bid to the County Collector in cash, by certified or
2cashier's check, by money order, or, if the successful bidder
3is a governmental unit, by a check issued by that governmental
4unit. If the bid exceeds the minimum bid, the successful bidder
5shall pay the balance of the bid to the county collector in
6cash, by certified or cashier's check, by money order, or, if
7the successful bidder is a governmental unit, by a check issued
8by that governmental unit by the close of the next business
9day. If the minimum bid is not paid at the time of sale or if
10the balance is not paid by the close of the next business day,
11then the sale is void and the minimum bid, if paid, is
12forfeited to the county general fund. In that event, the
13property shall be reoffered for sale within 30 days of the last
14offering of property in regular order. The collector shall make
15available to the public a list of all properties to be included
16in any reoffering due to the voiding of the original sale. The
17collector is not required to serve or publish any other notice
18of the reoffering of those properties. In the event that any of
19the properties are not sold upon reoffering, or are sold for
20less than the amount of the original voided sale, the original
21bidder who failed to pay the bid amount shall remain liable for
22the unpaid balance of the bid in an action under Section
2321-240. Liability shall not be reduced where the bidder upon
24reoffering also fails to pay the bid amount, and in that event
25both bidders shall remain liable for the unpaid balance of
26their respective bids. A sale of properties under this Section

 

 

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1shall not be final until confirmed by the court.
2    (b) Confirmation of sales. The county collector shall file
3his or her report of sale in the court within 30 days of the
4date of sale of each property. No notice of the county
5collector's application to confirm the sales shall be required
6except as prescribed by rule of the court. Upon confirmation,
7except in cases where the sale becomes void under Section
822-85, or in cases where the order of confirmation is vacated
9by the court, a sale under this Section shall extinguish the in
10rem lien of the general taxes, special taxes and special
11assessments for which judgment has been entered and a
12redemption shall not revive the lien. Confirmation of the sale
13shall in no event affect the owner's personal liability to pay
14the taxes, interest and penalties as provided in this Code or
15prevent institution of a proceeding under Section 21-440 to
16collect any amount that may remain due after the sale.
17    (c) Issuance of tax sale certificates. Upon confirmation of
18the sale the County Clerk and the County Collector shall issue
19to the purchaser a certificate of purchase in the form
20prescribed by Section 21-250 as near as may be. A certificate
21of purchase shall not be issued to any person who is ineligible
22to bid at the sale or to receive a certificate of purchase
23under Section 21-265.
24    (d) Scavenger Tax Judgment, Sale and Redemption Record -
25Sale of parcels not sold. The county collector shall prepare a
26Scavenger Tax Judgment, Sale and Redemption Record. The county

 

 

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1clerk shall write or stamp on the scavenger tax judgment, sale,
2forfeiture and redemption record opposite the description of
3any property offered for sale and not sold, or not confirmed
4for any reason, the words "offered but not sold". The
5properties which are offered for sale under this Section and
6not sold or not confirmed shall be offered for sale annually
7thereafter in the manner provided in this Section until sold,
8except in the case of mineral rights, which after 10
9consecutive years of being offered for sale under this Section
10and not sold or confirmed shall no longer be required to be
11offered for sale. At any time between annual sales the County
12Collector may advertise for sale any properties subject to sale
13under judgments for sale previously entered under this Section
14and not executed for any reason. The advertisement and sale
15shall be regulated by the provisions of this Code as far as
16applicable.
17    (e) Proceeding to tax deed. The owner of the certificate of
18purchase shall give notice as required by Sections 22-5 through
1922-30, and may extend the period of redemption as provided by
20Section 21-385. At any time within 6 months prior to expiration
21of the period of redemption from a sale under this Code, the
22owner of a certificate of purchase may file a petition and may
23obtain a tax deed under Sections 22-30 through 22-55. All
24proceedings for the issuance of a tax deed and all tax deeds
25for properties sold under this Section shall be subject to
26Sections 22-30 through 22-55. Deeds issued under this Section

 

 

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1are subject to Section 22-70. This Section shall be liberally
2construed so that the deeds provided for in this Section convey
3merchantable title.
4    (f) Redemptions from scavenger sales. Redemptions may be
5made from sales under this Section in the same manner and upon
6the same terms and conditions as redemptions from sales made
7under the County Collector's annual application for judgment
8and order of sale, except that in lieu of penalty the person
9redeeming shall pay interest as follows if the sale occurs
10before September 9, 1993:
11        (1) If redeemed within the first 2 months from the date
12    of the sale, 3% per month or portion thereof upon the
13    amount for which the property was sold;
14        (2) If redeemed between 2 and 6 months from the date of
15    the sale, 12% of the amount for which the property was
16    sold;
17        (3) If redeemed between 6 and 12 months from the date
18    of the sale, 24% of the amount for which the property was
19    sold;
20        (4) If redeemed between 12 and 18 months from the date
21    of the sale, 36% of the amount for which the property was
22    sold;
23        (5) If redeemed between 18 and 24 months from the date
24    of the sale, 48% of the amount for which the property was
25    sold;
26        (6) If redeemed after 24 months from the date of sale,

 

 

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1    the 48% herein provided together with interest at 6% per
2    year thereafter.
3    If the sale occurs on or after September 9, 1993, the
4person redeeming shall pay interest on that part of the amount
5for which the property was sold equal to or less than the full
6amount of delinquent taxes, special assessments, penalties,
7interest, and costs, included in the judgment and order of sale
8as follows:
9        (1) If redeemed within the first 2 months from the date
10    of the sale, 3% per month upon the amount of taxes, special
11    assessments, penalties, interest, and costs due for each of
12    the first 2 months, or fraction thereof.
13        (2) If redeemed at any time between 2 and 6 months from
14    the date of the sale, 12% of the amount of taxes, special
15    assessments, penalties, interest, and costs due.
16        (3) If redeemed at any time between 6 and 12 months
17    from the date of the sale, 24% of the amount of taxes,
18    special assessments, penalties, interest, and costs due.
19        (4) If redeemed at any time between 12 and 18 months
20    from the date of the sale, 36% of the amount of taxes,
21    special assessments, penalties, interest, and costs due.
22        (5) If redeemed at any time between 18 and 24 months
23    from the date of the sale, 48% of the amount of taxes,
24    special assessments, penalties, interest, and costs due.
25        (6) If redeemed after 24 months from the date of sale,
26    the 48% provided for the 24 months together with interest

 

 

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1    at 6% per annum thereafter on the amount of taxes, special
2    assessments, penalties, interest, and costs due.
3    The person redeeming shall not be required to pay any
4interest on any part of the amount for which the property was
5sold that exceeds the full amount of delinquent taxes, special
6assessments, penalties, interest, and costs included in the
7judgment and order of sale.
8    Notwithstanding any other provision of this Section,
9except for owner-occupied single family residential units
10which are condominium units, cooperative units or dwellings,
11the amount required to be paid for redemption shall also
12include an amount equal to all delinquent taxes on the property
13which taxes were delinquent at the time of sale. The delinquent
14taxes shall be apportioned by the county collector among the
15taxing districts in which the property is situated in
16accordance with law. In the event that all moneys received from
17any sale held under this Section exceed an amount equal to all
18delinquent taxes on the property sold, which taxes were
19delinquent at the time of sale, together with all publication
20and other costs associated with the sale, then, upon
21redemption, the County Collector and the County Clerk shall
22apply the excess amount to the cost of redemption.
23    (g) Bidding by county or other taxing districts. Any taxing
24district may bid at a scavenger sale. The county board of the
25county in which properties offered for sale under this Section
26are located, or the corporate authorities of any taxing

 

 

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1district in which the property is located, may bid as trustee
2for all taxing districts having an interest in the taxes for
3the nonpayment of which the parcels are offered. The County or
4taxing district shall apply on the bid the unpaid taxes due
5upon the property and no cash need be paid. The County or other
6taxing district acquiring a tax sale certificate shall take all
7steps necessary to acquire title to the property and may manage
8and operate the property so acquired.
9    When a county, or other taxing district within the county,
10is a petitioner for a tax deed, no filing fee shall be required
11on the petition. The county as a tax creditor and as trustee
12for other tax creditors, or other taxing district within which
13the property is located, the county shall not be required to
14allege and prove that all taxes and special assessments which
15become due and payable after the sale to the county have been
16paid. The county or taxing district shall not be required to
17pay the subsequently accruing taxes or special assessments at
18any time. Upon the written request of the county board or its
19designee, the county collector shall not offer the property for
20sale at any tax sale subsequent to the sale of the property to
21the county under this Section. The lien of taxes and special
22assessments which become due and payable after a sale to a
23county shall merge in the fee title of the county, or other
24taxing district, on the issuance of a deed. The County or
25taxing district may sell the properties so acquired, or the
26certificate of purchase thereto, and the proceeds of the sale

 

 

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1shall be distributed to the taxing districts in proportion to
2their respective interests therein. The presiding officer of
3the county board, with the advice and consent of the County
4Board, may appoint some officer or person to attend scavenger
5sales and bid on its behalf.
6    (h) Miscellaneous provisions. In the event that the tract
7of land or lot sold at any such sale is not redeemed within the
8time permitted by law and a tax deed is issued, all moneys that
9may be received from the sale of properties in excess of the
10delinquent taxes, together with all publication and other costs
11associated with the sale, shall, upon petition of any
12interested party to the court that issued the tax deed, be
13distributed by the County Collector pursuant to order of the
14court among the persons having legal or equitable interests in
15the property according to the fair value of their interests in
16the tract or lot. Section 21-415 does not apply to properties
17sold under this Section. Appeals may be taken from the orders
18and judgments entered under this Section as in other civil
19cases. The remedy herein provided is in addition to other
20remedies for the collection of delinquent taxes.
21    (i) The changes to this Section made by this amendatory Act
22of the 95th General Assembly apply only to matters in which a
23petition for tax deed is filed on or after the effective date
24of this amendatory Act of the 95th General Assembly.
25(Source: P.A. 95-477, eff. 6-1-08.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.