Illinois General Assembly - Full Text of HB0250
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Full Text of HB0250  101st General Assembly


Sen. Jason A. Barickman

Filed: 5/2/2019





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2    AMENDMENT NO. ______. Amend House Bill 250 by replacing
3everything after the enacting clause with the following:
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



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



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



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



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



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



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