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| Public Act 094-0312 |
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AN ACT concerning taxes.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Property Tax Code is amended by changing
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Sections 21-15, 21-20, 21-25, 21-30, and 21-310 as follows:
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(35 ILCS 200/21-15)
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Sec. 21-15. General tax due dates; default by mortgage | ||||
lender. Except as otherwise provided in this Section or Section | ||||
21-40, all property
upon which the first installment of taxes | ||||
remains unpaid on June 1 annually
shall be deemed delinquent | ||||
and shall bear interest after June 1 at the rate of
1 1/2% per | ||||
month or portion thereof. Except as otherwise provided in this
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Section or Section 21-40, all property upon which the second | ||||
installment of
taxes remains due and unpaid on September 1, | ||||
annually, shall be deemed
delinquent and shall bear interest | ||||
after September 1 at the same interest rate.
All interest | ||||
collected shall be paid into the general fund of the county.
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Payment received by mail and postmarked on or before the | ||||
required due date is
not delinquent.
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Property not subject to the interest charge in Section | ||||
9-260 or Section
9-265 shall also not
be subject to the | ||||
interest charge imposed by this Section until such time as
the | ||||
owner of the property receives actual notice of and is billed | ||||
for the
principal amount of back taxes due and owing.
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If an Illinois resident who is a member of the Illinois | ||||
National Guard
or a reserve component of the armed forces of | ||||
the United States
and who has
an ownership interest in property | ||||
taxed under this Act is called to active duty
for deployment | ||||
outside the continental United States
and
is on active duty on | ||||
the due date of any installment of taxes due under
this Act, he | ||||
or she shall not be deemed delinquent in the payment of the
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installment and no interest shall accrue or be charged as a | ||||
penalty on the
installment until 180
30 days after that member | ||
returns from active duty. To be deemed not delinquent in the | ||
payment of an installment of taxes and any
interest
on that | ||
installment, the reservist or guardsperson must make a | ||
reasonable effort to notify the county clerk and the county | ||
collector of his or her activation to active duty and must | ||
notify the county clerk and the county collector
within 180
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days after his or her deactivation and provide verification of | ||
the date of his
or her
deactivation. An installment of property | ||
taxes on the property of any reservist
or
guardsperson who | ||
fails to provide timely notice and verification of
deactivation | ||
to the
county clerk is subject to interest and penalties as | ||
delinquent taxes under
this Code from
the date of deactivation.
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Notwithstanding any other provision of law, when any unpaid | ||
taxes become
delinquent under this Section through the fault of | ||
the mortgage lender,
(i) the
interest assessed under this | ||
Section for delinquent taxes shall be charged
against the | ||
mortgage lender and not the mortgagor and (ii) the mortgage
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lender shall pay the taxes, redeem the property and take all | ||
necessary steps to
remove any liens accruing against the | ||
property because of the delinquency.
In the event that more | ||
than
one entity meets the definition of mortgage lender with | ||
respect to any
mortgage, the interest shall be assessed against | ||
the mortgage lender
responsible for servicing the mortgage. | ||
Unpaid taxes shall be deemed
delinquent through the fault of | ||
the mortgage lender only if: (a) the
mortgage
lender has | ||
received all payments due the mortgage lender for the property | ||
being
taxed under the written terms of the mortgage or | ||
promissory note secured by
the mortgage, (b) the mortgage | ||
lender holds funds in escrow to pay the taxes,
and (c) the | ||
funds are sufficient to pay the taxes
after deducting all | ||
amounts reasonably anticipated to become due for all hazard
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insurance premiums and mortgage insurance premiums and any | ||
other assessments to
be paid from the escrow under the terms of | ||
the mortgage. For purposes of this
Section, an
amount
is | ||
reasonably anticipated to become due if it is payable within 12 | ||
months from
the time of determining the sufficiency of funds | ||
held in escrow. Unpaid taxes
shall not be deemed delinquent | ||
through the fault of the mortgage lender if the
mortgage lender | ||
was directed in writing by the mortgagor not to pay the
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property taxes, or
if the failure to pay the taxes when due | ||
resulted from inadequate or inaccurate
parcel information | ||
provided by the mortgagor, a title or abstract company, or
by | ||
the agency or unit of government assessing the tax.
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(Source: P.A. 93-560, eff. 8-20-03.)
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(35 ILCS 200/21-20)
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Sec. 21-20. Due dates; accelerated billing in counties of | ||
less than
3,000,000. Except as otherwise provided in Section | ||
21-40, in counties with
less than 3,000,000 inhabitants in | ||
which the
accelerated method of billing and paying taxes | ||
provided for in Section 21-30 is
in effect, the estimated first | ||
installment of unpaid taxes shall be deemed
delinquent and | ||
shall bear interest after a date not later than June 1 annually
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as provided for in the ordinance or resolution of the county | ||
board adopting the
accelerated method, at the rate of 1 1/2% | ||
per month or portion thereof until
paid or forfeited. The | ||
second installment of unpaid taxes shall be deemed
delinquent | ||
and shall bear interest after August 1 annually at the same | ||
interest
rate until paid or forfeited. Payment received by mail | ||
and postmarked on or
before the required due date is not | ||
delinquent.
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If an Illinois resident who is a member of the Illinois | ||
National Guard
or a reserve component of the armed forces of | ||
the United States and
who has
an ownership interest in property | ||
taxed under this Act is called to active duty
for deployment | ||
outside the continental United States
and
is on active duty on | ||
the due date of any installment of taxes due under
this Act, he | ||
or she shall not be deemed delinquent in the payment of the
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installment and no interest shall accrue or be charged as a | ||
penalty on the
installment until 180
30 days after that member | ||
returns from
active
duty.
To be deemed not delinquent in the | ||
payment of an installment of taxes and any
interest
on that | ||
installment, the reservist or guardsperson must make a | ||
reasonable effort to notify the county clerk and the county | ||
collector of his or her activation to active duty and must | ||
notify the county clerk and the county collector
within 180
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days after his or her deactivation and provide verification of | ||
the date of his
or her
deactivation. An installment of property | ||
taxes on the property of any reservist
or
guardsperson who | ||
fails to provide timely notice and verification of
deactivation | ||
to the
county clerk is subject to interest and penalties as | ||
delinquent taxes under
this Code from
the date of deactivation.
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(Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)
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(35 ILCS 200/21-25)
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Sec. 21-25. Due dates; accelerated billing in counties of | ||
3,000,000 or more.
Except as hereinafter provided and as | ||
provided in Section 21-40, in
counties with 3,000,000 or more | ||
inhabitants
in which the accelerated method of billing and | ||
paying taxes provided for in
Section 21-30 is in effect, the | ||
estimated first installment of unpaid taxes
shall be deemed | ||
delinquent and shall bear interest after March 1 at the rate of
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1 1/2% per month or portion thereof until paid or forfeited. | ||
The second
installment of unpaid taxes shall be deemed | ||
delinquent and shall bear interest
after August 1 annually at | ||
the same interest rate until paid or forfeited.
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If the county board elects by ordinance adopted prior to | ||
July 1 of a levy
year to provide for taxes to be paid in 4 | ||
installments, each installment for
that levy year and each | ||
subsequent year shall be deemed delinquent and shall
begin to | ||
bear interest 30 days after the date specified by the ordinance | ||
for
mailing bills, at the rate of 1 1/2% per month or portion | ||
thereof, until paid
or forfeited.
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Payment received by mail and postmarked on or before the | ||
required due date
is not delinquent.
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Taxes levied on homestead property in which a member of the | ||
National Guard or
reserves of the armed forces of the United | ||
States who was called to active duty
on or after August 1, | ||
1990, and who has an ownership interest, shall not be
deemed | ||
delinquent and no interest shall accrue or be charged as a | ||
penalty on
such taxes due and payable in 1991 or 1992 until one | ||
year after that member
returns to civilian status.
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If an Illinois resident who is a member of the Illinois | ||
National Guard
or a reserve component of the armed forces of | ||
the United States
and who has an ownership interest in property | ||
taxed under this Act is
called to
active duty
for deployment | ||
outside the continental United States
and
is on active duty on | ||
the due date of any installment of taxes due under
this Act, he | ||
or she shall not be deemed delinquent in the payment of the
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installment and no interest shall accrue or be charged as a | ||
penalty on the
installment until 180
30 days after that member | ||
returns to
civilian
status.
To be deemed not delinquent in the | ||
payment of an installment of taxes and any
interest
on that | ||
installment, the reservist or guardsperson must make a | ||
reasonable effort to notify the county clerk and the county | ||
collector of his or her activation to active duty and must | ||
notify the county clerk and the county collector
within 180
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days after his or her deactivation and provide verification of | ||
the date of his
or her
deactivation. An installment of property | ||
taxes on the property of any reservist
or
guardsperson who | ||
fails to provide timely notice and verification of
deactivation | ||
to the
county clerk is subject to interest and penalties as | ||
delinquent taxes under
this Code from
the date of deactivation.
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(Source: P.A. 91-199, eff. 1-1-00; 91-898, eff. 7-6-00.)
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(35 ILCS 200/21-30)
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Sec. 21-30. Accelerated billing. Except as provided in this | ||
Section, Section 9-260, and Section 21-40, in
counties with
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3,000,000 or more inhabitants, by January 31 annually, | ||
estimated tax bills
setting out the first installment of | ||
property taxes for the preceding year,
payable in that year, | ||
shall be prepared and mailed. The first installment of
taxes on | ||
the estimated tax bills shall be computed at 50% of the total | ||
of each
tax bill for the preceding year.
If, prior to the | ||
preparation of the estimated tax bills, a certificate of
error | ||
has been either approved by a court on or before November 30 of | ||
the
preceding year or certified pursuant to Section 14-15 on or | ||
before November 30
of the preceding year, then the first | ||
installment of taxes on the estimated tax
bills shall be | ||
computed at 50% of the total taxes for the preceding year as
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corrected by the certificate of error.
By June 30 annually, | ||
actual tax bills shall
be prepared and mailed. These bills | ||
shall set out total taxes due and the
amount of estimated taxes | ||
billed in the first installment, and shall state
the balance of | ||
taxes due for that year as represented by the sum derived
from | ||
subtracting the amount of the first installment from the total | ||
taxes due
for that year.
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The county board may provide by ordinance, in counties with | ||
3,000,000 or more
inhabitants, for taxes to be paid in 4 | ||
installments. For the levy year for
which the ordinance is | ||
first effective and each subsequent year, estimated tax
bills | ||
setting out the first, second, and third installment of taxes | ||
for the
preceding year, payable in that year, shall be prepared | ||
and mailed not later
than the date specified by ordinance. Each | ||
installment on estimated tax bills
shall be computed at 25% of | ||
the total of each tax bill for the preceding year.
By the date | ||
specified in the ordinance, actual tax bills shall be prepared | ||
and
mailed. These bills shall set out total taxes due and the | ||
amount of estimated
taxes billed in the first, second, and | ||
third installments and shall state the
balance of taxes due for | ||
that year as represented by the sum derived from
subtracting | ||
the amount of the estimated installments from the total taxes | ||
due
for that year.
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The county board of any county with less than 3,000,000 | ||
inhabitants may, by
ordinance or resolution, adopt an | ||
accelerated method of tax billing.
The county board may | ||
subsequently rescind the ordinance or resolution and
revert to | ||
the method otherwise provided for in this Code.
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Taxes levied on homestead property in which a member of the | ||
National Guard or
reserves of the armed forces of the United | ||
States who was called to active duty
on or after August 1, | ||
1990, and who has an ownership interest shall not be
deemed | ||
delinquent and no interest shall accrue or be charged as a | ||
penalty on
such taxes due and payable in 1991 or 1992 until one | ||
year after that member
returns to civilian status.
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(Source: P.A. 92-475, eff. 8-23-01; 93-560, eff. 8-20-03.)
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(35 ILCS 200/21-310)
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Sec. 21-310. Sales in error.
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(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:
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(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,
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(2) the taxes or special assessments had been paid | ||
prior to the sale of
the property,
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(3) there is a double assessment,
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(4) the description is void for uncertainty,
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(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
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the value of any property),
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(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,
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(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
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(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.
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(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:
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(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.
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(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.
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(3) There is an interest held by the United States in | ||
the property sold
which could not be extinguished by the | ||
tax deed.
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(4) The real property contains a hazardous
substance, | ||
hazardous waste, or underground storage tank that would
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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.
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(c) When the county collector discovers, within one year | ||
after the
date of sale if taxes were sold at an annual tax sale | ||
or within 180 days after
the date of sale if taxes were sold at | ||
a scavenger tax sale, 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
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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
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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
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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.
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(d) If a sale is declared to be a sale in error, the county
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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.
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(Source: P.A. 91-177, eff. 1-1-00; 91-357, eff. 7-29-99; | ||
91-924, eff. 1-1-01;
92-224, eff. 1-1-02; 92-729, eff. | ||
7-25-02.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||