| ||||
| Public Act 100-0890 | ||||
| ||||
| ||||
AN ACT concerning revenue.
| ||||
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 21-310 and 21-385 as follows:
| ||||
(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, 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, or all or | ||||
any part of the
lien of taxes sold has become null and void | ||||
pursuant to Section 21-95
or unenforceable pursuant to | ||||
subsection (c) of Section 18-250 or subsection
(b) of | ||||
Section 22-40,
| ||||
(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,
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,
| ||
(7) the property is owned by the United States, the | ||
State of Illinois,
a municipality, or a
taxing district, or | ||
(8) the owner of the property is a reservist or | ||
guardsperson who is granted an extension of his or her due | ||
date under Sections 21-15, 21-20, and 21-25 of this Act.
| ||
(b) When, upon application of the owner of the certificate | ||
of purchase
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; however, if the | ||
court declares a sale in error under this paragraph (2), | ||
the court may order the holder of the certificate of | ||
purchase to assign the certificate to the county collector | ||
if requested by the county collector. The county collector | ||
may, upon request of the county, as trustee, or upon | ||
request of a taxing district having an interest in the | ||
taxes sold, further assign any certificate of purchase | ||
received pursuant to this paragraph (2) to the county | ||
acting as trustee for taxing districts pursuant to Section | ||
21-90 of this Code or to the taxing district having an | ||
interest in the taxes sold.
| ||
(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 | ||
if the owner of the
certificate of purchase has made | ||
application for a sale in error at any time
before the | ||
issuance of a tax deed.
| ||
Whenever a court declares a sale in error under this | ||
subsection (b), the court shall promptly notify the county | ||
collector in writing. Every such declaration pursuant to any | ||
provision of this subsection (b) shall be made within the | ||
proceeding in which the tax sale was authorized. | ||
(c) When the county collector discovers, prior to the | ||
expiration of the period of redemption, that a tax sale
should | ||
not have occurred for one or more of the reasons set forth in
| ||
subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, | ||
the county
collector shall notify the last known owner of the | ||
certificate of purchase by
certified and regular mail, or other | ||
means reasonably calculated to provide
actual notice, that the | ||
county collector intends to declare an administrative
sale in | ||
error and of the reasons therefor, including documentation | ||
sufficient
to establish the reason why the sale should not have | ||
occurred. The owner of the
certificate of purchase may object | ||
in writing within 28 days after the date of
the mailing by the | ||
county collector. If an objection is filed, the county
| ||
collector shall not administratively declare a sale in error, | ||
but may apply to
the circuit court for a sale in error as | ||
provided in subsection (a) of this
Section. Thirty days | ||
following the receipt of notice by the last known owner of
the | ||
certificate of purchase, or within a reasonable time | ||
thereafter, the county
collector shall make a written | ||
declaration, based upon clear and convincing
evidence, that the | ||
taxes were sold in error and shall deliver a copy thereof to
| ||
the county clerk within 30 days after the date the declaration | ||
is made for
entry in the tax judgment, sale, redemption, and | ||
forfeiture record pursuant to
subsection (d) of this Section. | ||
The county collector shall promptly notify the
last known owner | ||
of the certificate of purchase of the declaration by regular
| ||
mail and shall promptly pay the amount of the tax sale, | ||
together with interest
and costs as provided in Section 21-315, | ||
upon surrender of the original
certificate of purchase.
| ||
(d) 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. Alternatively, for sales in error declared under | ||
subsection (b)(2), the county collector may request the circuit | ||
court to direct the county clerk to record any assignment of | ||
the tax certificate to or from the county collector without | ||
charging a fee for the assignment. The owner of the certificate | ||
of purchase shall receive all statutory refunds and payments. | ||
The county collector shall deduct costs and payments in the | ||
same manner as if a sale in error had occurred.
| ||
(Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06; | ||
95-331, eff. 8-21-07.)
| ||
(35 ILCS 200/21-385)
| ||
Sec. 21-385. Extension of period of redemption. The
| ||
purchaser or his or her assignee of property
sold for | ||
nonpayment of general taxes or special assessments may extend
| ||
the period of redemption at any time before the expiration of | ||
the
original period of redemption, or thereafter prior to the | ||
expiration of any
extended period of redemption, for a period | ||
which will expire not later than 3
years from the date of sale, | ||
by filing with the county clerk of
the county in which the | ||
property is located a written notice to that
effect describing | ||
the property, stating the date of the sale and
specifying the | ||
extended period of redemption. If prior to the
expiration of | ||
the period of redemption or extended period of redemption
a | ||
petition for tax deed has been filed under Section
22-30, upon | ||
application of the petitioner, the court shall allow the
| ||
purchaser or his or her assignee to extend the period of | ||
redemption after
expiration of the original period or any | ||
extended period of redemption,
provided that any extension | ||
allowed will expire not later than 3 years from the
date of | ||
sale, unless the certificate has been assigned to the county | ||
collector by order of the court which ordered the property | ||
sold, in which case the period of redemption shall be extended | ||
for such period as may be designated by the holder of the | ||
certificate, such period not to exceed 36 months from the date | ||
of the assignment to the collector. If the period of redemption | ||
is extended, the purchaser or his or
her assignee must give the | ||
notices provided for in Section 22-10 at the
specified times | ||
prior to the expiration of the extended period of redemption by
| ||
causing a sheriff (or if he or she is disqualified, a coroner) | ||
of the county in
which the property, or any part thereof, is | ||
located to serve the notices as
provided in Sections 22-15 and | ||
22-20.
The notices may also be served as provided in Sections | ||
22-15 and 22-20 by a
special process server appointed by the | ||
court under Section 22-15.
| ||
(Source: P.A. 91-209, eff. 1-1-00; 91-554, eff. 8-14-99.)
| ||