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| Public Act 098-0949 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Mobile Home Local Services Tax Enforcement | ||||
Act is amended by changing Sections 255 and 260 as follows:
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(35 ILCS 516/255)
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Sec. 255. 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 that | ||||
owns or has owned the mobile home ordered sold, it appears to
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the satisfaction of the court that ordered the mobile home 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 mobile home was not subject to taxation,
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(1.5) the mobile home has been moved to a different | ||||
location,
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(2) the taxes had been paid prior to the sale of
the | ||||
mobile home,
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(3) there is a double computation of the tax,
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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 mobile home),
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(5.5) the owner of the mobile home had tendered timely | ||
and full
payment to the county collector that the owner | ||
reasonably believed was due and
owing on the mobile home, | ||
and the county collector did not apply the
payment to the | ||
mobile home; provided that this provision applies only to
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mobile home owners, not their agents or third-party payors, | ||
or
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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 mobile home requesting
relief under | ||
the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13, or .
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(7) the mobile home is owned by the United States, the | ||
State of Illinois, a municipality, or a taxing district. | ||
(b) When, upon application of the owner of the certificate | ||
of purchase
only, it appears to the satisfaction of the court | ||
that ordered the mobile home
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 certificate of title.
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(2) The mobile home sold has been substantially
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destroyed or rendered uninhabitable or otherwise unfit for | ||
occupancy subsequent
to the tax sale and prior to the | ||
issuance of the tax certificate of title.
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(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
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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 Sections 260 | ||
through 280, upon surrender of the original
certificate of | ||
purchase. | ||
(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 mobile home 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
260 through | ||
280, and cancel the certificate so far as it relates to the
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mobile home. 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. 92-807, eff. 1-1-03.)
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(35 ILCS 516/260)
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Sec. 260. Interest on refund.
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(a) In those cases which arise solely under grounds set | ||
forth in Section
255 or 395, and in no other cases, the court | ||
which orders a sale in
error shall
also award interest on the | ||
refund of the amount paid for the certificate of
purchase, | ||
together with all costs paid by the owner of the certificate of
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purchase or his or her assignor which were posted to the tax | ||
judgment, sale,
redemption and forfeiture record, except as | ||
otherwise provided in
this Section. Except as otherwise | ||
provided in this Section, interest shall be
awarded and paid at | ||
the rate of 1% per month from the date of sale to the
date of | ||
payment to the tax purchaser, or in an amount equivalent to the
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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.
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(b) Interest on the refund to the owner of the certificate | ||
of
purchase shall not be paid (i) in any case in which the | ||
mobile home
sold has been substantially destroyed or rendered | ||
uninhabitable or otherwise
unfit for occupancy,
(ii) when the | ||
sale in error is made pursuant to Section 395,
or (iii) in any | ||
other case where the court determines that the
tax purchaser | ||
had actual knowledge prior to the sale of the grounds on which
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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 255 and mails a notice thereof by
certified | ||
or registered mail to the tax purchaser, any interest otherwise
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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 original owner of the certificate of
purchase, or to the | ||
latest assignee, if known. When the
owner of the certificate of | ||
purchase contests the collector's petition
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
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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 255, and, thereafter, the county collector elects to | ||
apply to the circuit court for a sale in error under subsection | ||
(a) of Section 255, 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. 92-807, eff. 1-1-03.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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