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| Public Act 094-0662 |
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AN ACT concerning revenue.
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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 | ||||
Sections 21-310 and 21-315 as follows:
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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.
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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, prior to the | ||
expiration of the period of redemption
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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(35 ILCS 200/21-315)
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Sec. 21-315. Refund of costs; interest on refund.
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(a) If a sale in
error under Section 21-310, 22-35, or | ||
22-50
is declared, the amount refunded
shall also include all | ||
costs paid by the owner of the
certificate of
purchase or his | ||
or her assignor which were posted to the tax judgment, sale,
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redemption and forfeiture record.
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(b) In those cases which arise solely under grounds set | ||
forth in Section
21-310, the amount refunded shall also include
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interest
on the refund of the amount paid
for the certificate | ||
of purchase, except as otherwise provided in this Section.
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Interest shall be awarded and paid to the tax purchaser at the | ||
rate of 1% per
month from the date of sale to the date of | ||
payment, or in an amount equivalent
to the penalty interest | ||
which would be recovered on a redemption at the time of
payment | ||
pursuant to the order for sale in error, whichever is less. | ||
Interest
shall not be paid when the sale in error is made | ||
pursuant to paragraph (2) or
(4) of
subsection (b) of Section | ||
21-310, Section 22-35, Section 22-50, any ground
not enumerated | ||
in Section 21-310, or in any other case where the court
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determines that the
tax purchaser had actual knowledge prior to | ||
the sale of the grounds on which
the sale is declared to be | ||
erroneous.
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(c) When the county collector files a petition for sale in | ||
error under
Section 21-310 and mails a notice thereof by
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certified or registered mail to the
last known owner of the | ||
certificate of purchase, any interest otherwise
payable under | ||
this Section shall cease to accrue as of the date the
petition | ||
is filed, unless the tax purchaser agrees to an order for sale | ||
in
error upon the presentation of the petition to the court. | ||
Notices under
this subsection may be mailed to the last known | ||
owner of the
certificate of
purchase. When the
owner of the | ||
certificate of purchase contests the collector's petition
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solely to determine whether the grounds for sale in error are | ||
such as to
support a claim for interest, the court may direct | ||
that the principal
amount of the refund be paid to the owner of | ||
the certificate of purchase
forthwith. If the court thereafter | ||
determines that a claim for interest
lies under this Section, | ||
it shall award such interest from the date of sale
to the date | ||
the principal amount was paid. If the owner of the certificate | ||
of purchase files an objection to the county collector's | ||
intention to declare an administrative sale in error, as | ||
provided under subsection (c) of Section 21-310, and, | ||
thereafter, the county collector elects to apply to the circuit | ||
court for a sale in error under subsection (a) of Section | ||
21-310, then, if the circuit court grants the county | ||
collector's application for a sale in error, the court may not | ||
award interest to the owner of the certificate of purchase for | ||
the period after the mailing date of the county collector's | ||
notice of intention to declare an administrative sale in error.
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(Source: P.A. 92-224, eff. 1-1-02; 92-729, eff. 7-25-02.)
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