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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||
5 | Sections 21-310 and 21-385 as follows:
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6 | (35 ILCS 200/21-310)
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7 | Sec. 21-310. Sales in error.
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8 | (a) When, upon application of the county collector, the | ||||||
9 | owner of the
certificate of purchase, or a
municipality which | ||||||
10 | owns or has owned the property ordered sold, it appears to
the | ||||||
11 | satisfaction of the court which ordered the property sold that | ||||||
12 | any of the
following subsections are applicable, the court | ||||||
13 | shall declare the sale to be a
sale in error:
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14 | (1) the property was not subject to taxation, or all or | ||||||
15 | any part of the
lien of taxes sold has become null and void | ||||||
16 | pursuant to Section 21-95
or unenforceable pursuant to | ||||||
17 | subsection (c) of Section 18-250 or subsection
(b) of | ||||||
18 | Section 22-40,
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19 | (2) the taxes or special assessments had been paid | ||||||
20 | prior to the sale of
the property,
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21 | (3) there is a double assessment,
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22 | (4) the description is void for uncertainty,
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23 | (5) the assessor, chief county assessment officer, |
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1 | board of review,
board of appeals, or other county official | ||||||
2 | has made an error (other than an
error of judgment as to
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3 | the value of any property),
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4 | (5.5) the owner of the homestead property had tendered | ||||||
5 | timely and full
payment to the county collector that the | ||||||
6 | owner reasonably believed was due and
owing on the | ||||||
7 | homestead property, and the county collector did not apply | ||||||
8 | the
payment to the homestead property; provided that this | ||||||
9 | provision applies only to
homeowners, not their agents or | ||||||
10 | third-party payors,
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11 | (6) prior to the tax sale a voluntary or involuntary | ||||||
12 | petition has been
filed by or against the legal or | ||||||
13 | beneficial owner of the property requesting
relief under | ||||||
14 | the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
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15 | (7) the property is owned by the United States, the | ||||||
16 | State of Illinois,
a municipality, or a
taxing district, or | ||||||
17 | (8) the owner of the property is a reservist or | ||||||
18 | guardsperson who is granted an extension of his or her due | ||||||
19 | date under Sections 21-15, 21-20, and 21-25 of this Act.
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20 | (b) When, upon application of the owner of the certificate | ||||||
21 | of purchase
only, it appears to the satisfaction of the court | ||||||
22 | which ordered the property
sold that any of the following | ||||||
23 | subsections are applicable, the court shall
declare the sale to | ||||||
24 | be a sale in error:
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25 | (1) A voluntary or involuntary petition under the | ||||||
26 | provisions of 11
U.S.C. Chapter 7, 11, 12, or 13 has been |
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1 | filed
subsequent to the tax sale and prior to the issuance | ||||||
2 | of the tax deed.
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3 | (2) The improvements upon the property sold have been | ||||||
4 | substantially
destroyed or rendered uninhabitable or | ||||||
5 | otherwise unfit for occupancy subsequent
to the tax sale | ||||||
6 | and prior to the issuance of the tax deed ; however, if the | ||||||
7 | court declares a sale in error under this paragraph (2), | ||||||
8 | the court may order the holder of the certificate of | ||||||
9 | purchase to assign the certificate to the county collector | ||||||
10 | if requested by the county collector. The county collector | ||||||
11 | may, upon request of the county, as trustee, or upon | ||||||
12 | request of a taxing district having an interest in the | ||||||
13 | taxes sold, further assign any certificate of purchase | ||||||
14 | received pursuant to this paragraph (2) to the county | ||||||
15 | acting as trustee for taxing districts pursuant to Section | ||||||
16 | 21-90 of this Code or to the taxing district having an | ||||||
17 | interest in the taxes sold .
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18 | (3) There is an interest held by the United States in | ||||||
19 | the property sold
which could not be extinguished by the | ||||||
20 | tax deed.
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21 | (4) The real property contains a hazardous
substance, | ||||||
22 | hazardous waste, or underground storage tank that would
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23 | require cleanup or other removal under any federal,
State, | ||||||
24 | or local law, ordinance, or regulation, only if the tax | ||||||
25 | purchaser
purchased the property without actual knowledge | ||||||
26 | of the hazardous substance,
hazardous waste, or |
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1 | underground storage tank. This paragraph (4) applies only | ||||||
2 | if the owner of the
certificate of purchase has made | ||||||
3 | application for a sale in error at any time
before the | ||||||
4 | issuance of a tax deed.
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5 | Whenever a court declares a sale in error under this | ||||||
6 | subsection (b), the court shall promptly notify the county | ||||||
7 | collector in writing. Every such declaration pursuant to any | ||||||
8 | provision of this subsection (b) shall be made within the | ||||||
9 | proceeding in which the tax sale was authorized. | ||||||
10 | (c) When the county collector discovers, prior to the | ||||||
11 | expiration of the period of redemption, that a tax sale
should | ||||||
12 | not have occurred for one or more of the reasons set forth in
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13 | subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, | ||||||
14 | the county
collector shall notify the last known owner of the | ||||||
15 | certificate of purchase by
certified and regular mail, or other | ||||||
16 | means reasonably calculated to provide
actual notice, that the | ||||||
17 | county collector intends to declare an administrative
sale in | ||||||
18 | error and of the reasons therefor, including documentation | ||||||
19 | sufficient
to establish the reason why the sale should not have | ||||||
20 | occurred. The owner of the
certificate of purchase may object | ||||||
21 | in writing within 28 days after the date of
the mailing by the | ||||||
22 | county collector. If an objection is filed, the county
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23 | collector shall not administratively declare a sale in error, | ||||||
24 | but may apply to
the circuit court for a sale in error as | ||||||
25 | provided in subsection (a) of this
Section. Thirty days | ||||||
26 | following the receipt of notice by the last known owner of
the |
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1 | certificate of purchase, or within a reasonable time | ||||||
2 | thereafter, the county
collector shall make a written | ||||||
3 | declaration, based upon clear and convincing
evidence, that the | ||||||
4 | taxes were sold in error and shall deliver a copy thereof to
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5 | the county clerk within 30 days after the date the declaration | ||||||
6 | is made for
entry in the tax judgment, sale, redemption, and | ||||||
7 | forfeiture record pursuant to
subsection (d) of this Section. | ||||||
8 | The county collector shall promptly notify the
last known owner | ||||||
9 | of the certificate of purchase of the declaration by regular
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10 | mail and shall promptly pay the amount of the tax sale, | ||||||
11 | together with interest
and costs as provided in Section 21-315, | ||||||
12 | upon surrender of the original
certificate of purchase.
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13 | (d) If a sale is declared to be a sale in error, the county
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14 | clerk shall make entry in the tax judgment, sale, redemption | ||||||
15 | and
forfeiture record, that the property was erroneously sold, | ||||||
16 | and the county
collector shall, on demand of the owner of the | ||||||
17 | certificate of purchase, refund
the amount paid, pay any | ||||||
18 | interest and costs as may be ordered under Sections
21-315 | ||||||
19 | through 21-335, and cancel the certificate so far as it relates | ||||||
20 | to the
property. The county collector shall deduct from the | ||||||
21 | accounts of the
appropriate taxing bodies their pro rata | ||||||
22 | amounts paid. Alternatively, for sales in error declared under | ||||||
23 | subsection (b)(2), the county collector may request the circuit | ||||||
24 | court to direct the county clerk to record any assignment of | ||||||
25 | the tax certificate to or from the county collector without | ||||||
26 | charging a fee for the assignment. The owner of the certificate |
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1 | of purchase shall receive all statutory refunds and payments. | ||||||
2 | The county collector shall deduct costs and payments in the | ||||||
3 | same manner as if a sale in error had occurred.
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4 | (Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06; | ||||||
5 | 95-331, eff. 8-21-07.)
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6 | (35 ILCS 200/21-385)
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7 | Sec. 21-385. Extension of period of redemption. The
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8 | purchaser or his or her assignee of property
sold for | ||||||
9 | nonpayment of general taxes or special assessments may extend
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10 | the period of redemption at any time before the expiration of | ||||||
11 | the
original period of redemption, or thereafter prior to the | ||||||
12 | expiration of any
extended period of redemption, for a period | ||||||
13 | which will expire not later than 3
years from the date of sale, | ||||||
14 | by filing with the county clerk of
the county in which the | ||||||
15 | property is located a written notice to that
effect describing | ||||||
16 | the property, stating the date of the sale and
specifying the | ||||||
17 | extended period of redemption. If prior to the
expiration of | ||||||
18 | the period of redemption or extended period of redemption
a | ||||||
19 | petition for tax deed has been filed under Section
22-30, upon | ||||||
20 | application of the petitioner, the court shall allow the
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21 | purchaser or his or her assignee to extend the period of | ||||||
22 | redemption after
expiration of the original period or any | ||||||
23 | extended period of redemption,
provided that any extension | ||||||
24 | allowed will expire not later than 3 years from the
date of | ||||||
25 | sale , unless the certificate has been assigned to the county |
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1 | collector by order of the court which ordered the property | ||||||
2 | sold, in which case the period of redemption shall be extended | ||||||
3 | for such period as may be designated by the holder of the | ||||||
4 | certificate, such period not to exceed 36 months from the date | ||||||
5 | of the assignment to the collector . If the period of redemption | ||||||
6 | is extended, the purchaser or his or
her assignee must give the | ||||||
7 | notices provided for in Section 22-10 at the
specified times | ||||||
8 | prior to the expiration of the extended period of redemption by
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9 | causing a sheriff (or if he or she is disqualified, a coroner) | ||||||
10 | of the county in
which the property, or any part thereof, is | ||||||
11 | located to serve the notices as
provided in Sections 22-15 and | ||||||
12 | 22-20.
The notices may also be served as provided in Sections | ||||||
13 | 22-15 and 22-20 by a
special process server appointed by the | ||||||
14 | court under Section 22-15.
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15 | (Source: P.A. 91-209, eff. 1-1-00; 91-554, eff. 8-14-99.)
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