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Public Act 91-0924
SB1693 Enrolled LRB9110187SMdv
AN ACT concerning taxation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 21-295, 21-310 and 21-355 as follows:
(35 ILCS 200/21-295)
Sec. 21-295. Creation of indemnity fund.
(a) In counties of less than 3,000,000 inhabitants, each
person purchasing any property at a sale under this Code
shall pay to the County Collector, prior to the issuance of
any certificate of purchase, a fee of $20 for each item
purchased. A like sum shall be paid for each year that all
or a portion of subsequent taxes are paid by the tax
purchaser and posted to the tax judgment, sale, redemption
and forfeiture record where the underlying certificate of
purchase is recorded.
(a-5) In counties of 3,000,000 or more inhabitants, each
person purchasing property at a sale under this Code shall
pay to the County Collector a fee of $80 for each item
purchased plus an additional sum equal to 5% of total taxes,
interest, and penalties paid by the purchaser, including the
taxes, interest, and penalties paid under Section 21-240. In
these counties, the certificate holder shall also pay to the
County Collector a fee of $80 for each year that all or a
portion of subsequent taxes are paid by the tax purchaser and
posted to the tax judgment, sale, redemption, and forfeiture
record, plus an additional sum equal to 5% of all subsequent
taxes, interest, and penalties. The additional 5% fees are
fee is not required after December 31, 2006. The changes to
this subsection made by this amendatory Act of the 91st
General Assembly are not a new enactment, but declaratory of
existing law.
(b) The amount paid prior to issuance of the certificate
of purchase pursuant to subsection (a) or (a-5) shall be
included in the purchase price of the property in the
certificate of purchase and all amounts paid under this
Section shall be included in the amount required to redeem
under Section 21-355. Except as otherwise provided in
subsection (b) of Section 21-300, all money received under
subsection (a) or (a-5) shall be paid by the Collector to the
County Treasurer of the County in which the land is situated,
for the purpose of an indemnity fund. The County Treasurer,
as trustee of that fund, shall invest all of that fund,
principal and income, in his or her hands from time to time,
if not immediately required for payments of indemnities under
subsection (a) of Section 21-305, in investments permitted by
the Illinois State Board of Investment under Article 22A of
the Illinois Pension Code. The county collector shall report
annually to the Circuit Court on the condition and income of
the fund. The indemnity fund shall be held to satisfy
judgments obtained against the County Treasurer, as trustee
of the fund. No payment shall be made from the fund, except
upon a judgment of the court which ordered the issuance of a
tax deed.
(Source: P.A. 91-564, eff. 8-14-99.)
(35 ILCS 200/21-310)
Sec. 21-310. Sales in error.
(a) When, upon application of the county collector, the
owner of the certificate of purchase tax purchaser, or a
municipality which owns or has owned the property ordered
sold, it appears to the satisfaction of the court which
ordered the property sold that any of the following
subsections are applicable, the court shall declare the sale
to be a sale in error:
(1) the property was not subject to taxation,
(2) the taxes or special assessments had been paid
prior to the sale of the property,
(3) there is a double assessment,
(4) the description is void for uncertainty,
(5) the assessor, chief county assessment officer,
board of review, or board of appeals, or other county
official has made an error (other than an error of
judgment as to the value of any property),
(5.5) the owner of the homestead property had
tendered timely and full payment to the county collector
that the owner reasonably believed was due and owing on
the homestead property, and the county collector did not
apply the payment to the homestead property; provided
that this provision applies only to homeowners, not their
agents or third-party payors,
(6) prior to the tax sale a voluntary or
involuntary petition has been filed by or against the
legal or beneficial owner of the property requesting
relief under the provisions of 11 U.S.C. Chapter 7, 11,
12, or 13, or
(7) a municipality has acquired the property (i)
through the foreclosure of a lien authorized under
Section 11-31-1 of the Illinois Municipal Code or through
a judicial deed issued under that Section or (ii) through
foreclosure of a receivership certificate lien.
(b) When, upon application of the owner of the
certificate of purchase tax purchaser or his or her assignee
only, it appears to the satisfaction of the court which
ordered the property sold that any of the following
subsections are applicable, the court shall declare the sale
to be a sale in error:
(1) A voluntary or involuntary petition under the
provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
filed subsequent to the tax sale and prior to the
issuance of the tax deed.
(2) The improvements upon the property sold have
been substantially destroyed or rendered uninhabitable or
otherwise unfit for occupancy subsequent to the tax sale
and prior to the issuance of the tax deed.
(3) There is an interest held by the United States
in the property sold which could not be extinguished by
the tax deed.
(4) The real property contains a hazardous
substance, hazardous waste, or underground storage tank
that would require cleanup or other removal under any
federal, State, or local law, ordinance, or regulation,
only if the tax purchaser purchased the property without
actual knowledge of the hazardous substance, hazardous
waste, or underground storage tank. This paragraph (4)
applies only to tax purchases occurring after January 1,
1990 and if the owner of the certificate of purchase tax
purchaser or his or her assignee has made application for
a sale in error at any time before the issuance of a tax
deed.
If a sale is declared to be a sale in error, the county
clerk shall make entry in the tax judgment, sale, redemption
and forfeiture record, that the property was erroneously
sold, and the county collector shall, on demand of the owner
of the certificate of purchase, refund the amount paid, pay
any interest and costs as may be ordered under Sections
21-315 through 21-335, and cancel the certificate so far as
it relates to the property. The county collector shall deduct
from the accounts of the appropriate taxing bodies their pro
rata amounts paid.
(Source: P.A. 91-177, eff. 1-1-00; 91-357, eff. 7-29-99.)
(35 ILCS 200/21-355)
Sec. 21-355. Amount of redemption. Any person desiring
to redeem shall deposit an amount specified in this Section
with the county clerk of the county in which the property is
situated, in legal money of the United States, or by
cashier's check, certified check, post office money order or
money order issued by a financial institution insured by an
agency or instrumentality of the United States, payable to
the county clerk of the proper county. The deposit shall be
deemed timely only if actually received in person at the
county clerk's office prior to the close of business as
defined in Section 3-2007 of the Counties Code on or before
the expiration of the period of redemption or by United
States mail with a post office cancellation mark dated not
less than one day prior to the expiration of the period of
redemption. The deposit shall be in an amount equal to the
total of the following:
(a) the certificate amount, which shall include all
tax principal, special assessments, interest and
penalties paid by the tax purchaser together with costs
and fees of sale and fees paid under Sections 21-295 and
21-315 through 21-335;
(b) the accrued penalty, computed through the date
of redemption as a percentage of the certificate amount,
as follows:
(1) if the redemption occurs on or before the
expiration of 6 months from the date of sale, the
certificate amount times the penalty bid at sale;
(2) if the redemption occurs after 6 months
from the date of sale, and on or before the
expiration of 12 months from the date of sale, the
certificate amount times 2 times the penalty bid at
sale;
(3) if the redemption occurs after 12 months
from the date of sale and on or before the
expiration of 18 months from the date of sale, the
certificate amount times 3 times the penalty bid at
sale;
(4) if the redemption occurs after 18 months
from the date of sale and on or before the
expiration of 24 months from the date of sale, the
certificate amount times 4 times the penalty bid at
sale;
(5) if the redemption occurs after 24 months
from the date of sale and on or before the
expiration of 30 months from the date of sale, the
certificate amount times 5 times the penalty bid at
sale;
(6) if the redemption occurs after 30 months
from the date of sale and on or before the
expiration of 36 months from the date of sale, the
certificate amount times 6 times the penalty bid at
sale.
In the event that the property to be redeemed
has been purchased under Section 21-405 21-370, the
penalty bid shall be 12% per penalty period as set
forth in subparagraphs (1) through (6) of this
subsection (b). The changes to this subdivision
(b)(6) made by this amendatory Act of the 91st
General Assembly are not a new enactment, but
declaratory of existing law.
(c) The total of all taxes, special assessments,
accrued interest on those taxes and special assessments
and costs charged in connection with the payment of those
taxes or special assessments, which have been paid by the
tax certificate holder on or after the date those taxes
or special assessments became delinquent together with
12% penalty on each amount so paid for each year or
portion thereof intervening between the date of that
payment and the date of redemption. In counties with less
than 3,000,000 inhabitants, however, a tax certificate
holder may not pay all or part of an installment of a
subsequent tax or special assessment for any year, nor
shall any tender of such a payment be accepted, until
after the second or final installment of the subsequent
tax or special assessment has become delinquent or until
after the holder of the certificate of purchase has filed
a petition for a tax deed under Section 22.30. The
person redeeming shall also pay the amount of interest
charged on the subsequent tax or special assessment and
paid as a penalty by the tax certificate holder. This
amendatory Act of 1995 applies to tax years beginning
with the 1995 taxes, payable in 1996, and thereafter.
(d) Any amount paid to redeem a forfeiture
occurring subsequent to the tax sale together with 12%
penalty thereon for each year or portion thereof
intervening between the date of the forfeiture redemption
and the date of redemption from the sale.
(e) Any amount paid by the certificate holder for
redemption of a subsequently occurring tax sale.
(f) All fees paid to the county clerk under Section
22-5.
(g) All fees paid to the registrar of titles
incident to registering the tax certificate in compliance
with the Registered Titles (Torrens) Act.
(h) All fees paid to the circuit clerk and the
sheriff or coroner in connection with the filing of the
petition for tax deed and service of notices under
Sections 22-15 through 22-30 and 22-40 in addition to (1)
a fee of $35 if a petition for tax deed has been filed,
which fee shall be posted to the tax judgement, sale,
redemption, and forfeiture record, to be paid to the
purchaser or his or her assignee; (2) a fee of $4 if a
notice under Section 22-5 has been filed, which fee shall
be posted to the tax judgment, sale, redemption, and
forfeiture record, to be paid to the purchaser or his or
her assignee; and (3) all costs paid to record a lis
pendens notice in connection with filing a petition under
this Code. The fees in (1) and (2) of this paragraph (h)
shall be exempt from the posting requirements of Section
21-360.
(i) All fees paid for publication of notice of the
tax sale in accordance with Section 22-20.
(j) All sums paid to any city, village or
incorporated town for reimbursement under Section 22-35.
(k) All costs and expenses of receivership under
Section 21-410, to the extent that these costs and
expenses exceed any income from the property in question,
if the costs and expenditures have been approved by the
court appointing the receiver and a certified copy of the
order or approval is filed and posted by the certificate
holder with the county clerk. Only actual costs expended
may be posted on the tax judgment, sale, redemption and
forfeiture record.
(Source: P.A. 88-455; 89-57, eff. 6-30-95; 89-69, eff.
6-30-95; 89-626, eff. 8-9-96.)
Section 10. The Code of Civil Procedure is amended by
adding Section 12-144.5 and changing Section 12-145 as
follows:
(735 ILCS 5/12-144.5 new)
Sec. 12-144.5. Report of sale and confirmation of sale.
(a) When the premises mentioned in the certificate are
not redeemed in pursuance of law, the legal holder of the
certificate shall promptly make a report to the court that
issued the underlying judgment. The report shall include a
copy of the certificate of sale; an affidavit, under oath,
containing a good faith appraisal of the fair market value of
the property; and a listing of all liens and mortgages
including the value thereof.
(b) Upon motion and notice in accordance with court
rules applicable to motions generally, including notice to
the judgment debtor, the court issuing the underlying
judgment shall conduct a hearing to confirm the sale. Unless
the court finds that (i) notice as required by law was not
given, (ii) the terms of the sale were unconscionable, (iii)
the sale was conducted fraudulently, or (iv) justice was
otherwise not done, the court shall then enter an order
confirming the sale. In making these findings, the court
shall take into account the purchase price at the sale in
relation to the fair market value of the property less the
value of any mortgages and liens.
(735 ILCS 5/12-145) (from Ch. 110, par. 12-145)
Sec. 12-145. Time of execution of deed. When the
premises mentioned in such certificate are not redeemed in
pursuance of law, and the court issuing the underlying
judgment has entered an order confirming the sale in
accordance with Section 12-144.5, the legal holder of the
certificate is entitled to a deed therefor at any time within
5 years from the expiration of the time of redemption. The
deed shall be executed by the sheriff or other officer who
made the sale, or by his or her successor in office, or by
some person specially appointed by the court for the purpose.
If the deed is not taken within the time limited by Part 1 of
Article XII of this Act, the certificate of purchase is void
unless the purchaser under the certificate of sale has gone
into possession of the premises under and in reliance on the
certificate of sale within the 5 year period. If, however,
the deed is wrongfully withheld by the officer whose duty it
is to execute it, or if the execution of the deed is
restrained by injunction or order of a court, the time during
which the deed is so withheld or the execution thereof
restrained shall not be considered as any part of the 5 years
within which the holder is required to take a deed.
(Source: P.A. 83-707.)
Section 99. Effective date. This Section and the
changes to Sections 21-295 of the Property Tax Code take
effect upon becoming law.
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