Sen. Pat McGuire
Filed: 4/17/2015
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1 | AMENDMENT TO SENATE BILL 1365
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2 | AMENDMENT NO. ______. Amend Senate Bill 1365 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Property Tax Code is amended by changing | ||||||
5 | Sections 21-310, 21-315, 21-330, 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 |
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1 | subsection (c) of Section 18-250 or subsection
(b) of | ||||||
2 | Section 22-40,
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3 | (2) the taxes or special assessments had been paid | ||||||
4 | prior to the sale of
the property,
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5 | (3) there is a double assessment,
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6 | (4) the description is void for uncertainty,
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7 | (5) the assessor, chief county assessment officer, | ||||||
8 | board of review,
board of appeals, or other county official | ||||||
9 | has made an error (other than an
error of judgment as to
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10 | the value of any property),
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11 | (5.5) the owner of the homestead property had tendered | ||||||
12 | timely and full
payment to the county collector that the | ||||||
13 | owner reasonably believed was due and
owing on the | ||||||
14 | homestead property, and the county collector did not apply | ||||||
15 | the
payment to the homestead property; provided that this | ||||||
16 | provision applies only to
homeowners, not their agents or | ||||||
17 | third-party payors,
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18 | (6) prior to the tax sale a voluntary or involuntary | ||||||
19 | petition has been
filed by or against the legal or | ||||||
20 | beneficial owner of the property requesting
relief under | ||||||
21 | the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
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22 | (7) the property is owned by the United States, the | ||||||
23 | State of Illinois,
a municipality, or a
taxing district, or | ||||||
24 | (8) the owner of the property is a reservist or | ||||||
25 | guardsperson who is granted an extension of his or her due | ||||||
26 | date under Sections 21-15, 21-20, and 21-25 of this Act.
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1 | (b) When, upon application of the owner of the certificate | ||||||
2 | of purchase
only, it appears to the satisfaction of the court | ||||||
3 | which ordered the property
sold that any of the following | ||||||
4 | subsections are applicable, the court shall
declare the sale to | ||||||
5 | be a sale in error:
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6 | (1) A voluntary or involuntary petition under the | ||||||
7 | provisions of 11
U.S.C. Chapter 7, 11, 12, or 13 has been | ||||||
8 | filed
subsequent to the tax sale and prior to the issuance | ||||||
9 | of the tax deed.
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10 | (2) The improvements upon the property sold have been | ||||||
11 | substantially
destroyed or rendered uninhabitable or | ||||||
12 | otherwise unfit for occupancy subsequent
to the tax sale | ||||||
13 | and prior to the issuance of the tax deed ; however, if the | ||||||
14 | court declares a sale in error under this paragraph (2), | ||||||
15 | the court may order assignment of the certificate of | ||||||
16 | purchase to the county collector or the delinquent county | ||||||
17 | tax agent, if requested by the county collector .
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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. | ||||||
8 | (c) When the county collector discovers, prior to the | ||||||
9 | expiration of the period of redemption, that a tax sale
should | ||||||
10 | not have occurred for one or more of the reasons set forth in
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11 | subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, | ||||||
12 | the county
collector shall notify the last known owner of the | ||||||
13 | certificate of purchase by
certified and regular mail, or other | ||||||
14 | means reasonably calculated to provide
actual notice, that the | ||||||
15 | county collector intends to declare an administrative
sale in | ||||||
16 | error and of the reasons therefor, including documentation | ||||||
17 | sufficient
to establish the reason why the sale should not have | ||||||
18 | occurred. The owner of the
certificate of purchase may object | ||||||
19 | in writing within 28 days after the date of
the mailing by the | ||||||
20 | county collector. If an objection is filed, the county
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21 | collector shall not administratively declare a sale in error, | ||||||
22 | but may apply to
the circuit court for a sale in error as | ||||||
23 | provided in subsection (a) of this
Section. Thirty days | ||||||
24 | following the receipt of notice by the last known owner of
the | ||||||
25 | certificate of purchase, or within a reasonable time | ||||||
26 | thereafter, the county
collector shall make a written |
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1 | declaration, based upon clear and convincing
evidence, that the | ||||||
2 | taxes were sold in error and shall deliver a copy thereof to
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3 | the county clerk within 30 days after the date the declaration | ||||||
4 | is made for
entry in the tax judgment, sale, redemption, and | ||||||
5 | forfeiture record pursuant to
subsection (d) of this Section. | ||||||
6 | The county collector shall promptly notify the
last known owner | ||||||
7 | of the certificate of purchase of the declaration by regular
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8 | mail and shall promptly pay the amount of the tax sale, | ||||||
9 | together with interest
and costs as provided in Section 21-315, | ||||||
10 | upon surrender of the original
certificate of purchase.
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11 | (d) If a sale is declared to be a sale in error, the county
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12 | clerk shall make entry in the tax judgment, sale, redemption | ||||||
13 | and
forfeiture record, that the property was erroneously sold, | ||||||
14 | and the county
collector shall, on demand of the owner of the | ||||||
15 | certificate of purchase, refund
the amount paid, pay any | ||||||
16 | interest and costs as may be ordered under Sections
21-315 | ||||||
17 | through 21-335, and cancel the certificate so far as it relates | ||||||
18 | to the
property. The county collector shall deduct from the | ||||||
19 | accounts of the
appropriate taxing bodies their pro rata | ||||||
20 | amounts paid. Alternatively, for sales in error declared under | ||||||
21 | subsection (b)(2), the county collector may request the circuit | ||||||
22 | court to direct the county clerk to assign the tax certificate | ||||||
23 | to the county collector or the county delinquent tax agent | ||||||
24 | without charging a fee for the assignment. The owner of the | ||||||
25 | certificate of purchase shall receive all statutory refunds and | ||||||
26 | payments. The county collector shall deduct costs and payments |
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1 | in the same manner as if a sale in error had occurred. The | ||||||
2 | county delinquent tax agent shall extend the redemption period | ||||||
3 | by 24 months in order to proceed with filing a petition for tax | ||||||
4 | deed.
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5 | (Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06; | ||||||
6 | 95-331, eff. 8-21-07.)
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7 | (35 ILCS 200/21-315)
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8 | Sec. 21-315. Refund of costs; interest on refund.
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9 | (a) If a sale in
error under Section 21-310, 22-35, or | ||||||
10 | 22-50
is declared, the amount refunded
shall also include all | ||||||
11 | costs paid by the owner of the
certificate of
purchase or his | ||||||
12 | or her assignor which were posted to the tax judgment, sale,
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13 | redemption and forfeiture record.
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14 | (b) In those cases which arise solely under grounds set | ||||||
15 | forth in Section
21-310, the amount refunded shall also include
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16 | interest
on the refund of the amount paid
for the certificate | ||||||
17 | of purchase, except as otherwise provided in this Section.
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18 | Interest shall be awarded and paid to the tax purchaser at the | ||||||
19 | rate of 1% per
month from the date of sale to the date of | ||||||
20 | payment, or in an amount equivalent
to the penalty interest | ||||||
21 | which would be recovered on a redemption at the time of
payment | ||||||
22 | pursuant to the order for sale in error, whichever is less. | ||||||
23 | Interest
shall not be paid when the sale in error is made | ||||||
24 | pursuant to paragraph (2) or
(4) of
subsection (b) of Section | ||||||
25 | 21-310, Section 22-35, Section 22-50, any ground
not enumerated |
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1 | in Section 21-310, or in any other case where the court
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2 | determines that the
tax purchaser had actual knowledge prior to | ||||||
3 | the sale of the grounds on which
the sale is declared to be | ||||||
4 | erroneous.
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5 | (c) When the county collector files a petition for sale in | ||||||
6 | error under
Section 21-310 and mails a notice thereof by
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7 | certified or registered mail to the
last known owner of the | ||||||
8 | certificate of purchase, any interest otherwise
payable under | ||||||
9 | this Section shall cease to accrue as of the date the
petition | ||||||
10 | is filed, unless the tax purchaser agrees to an order for sale | ||||||
11 | in
error upon the presentation of the petition to the court. | ||||||
12 | Notices under
this subsection may be mailed to the last known | ||||||
13 | owner of the
certificate of
purchase. When the
owner of the | ||||||
14 | certificate of purchase contests the collector's petition
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15 | solely to determine whether the grounds for sale in error are | ||||||
16 | such as to
support a claim for interest, the court may direct | ||||||
17 | that the principal
amount of the refund be paid to the owner of | ||||||
18 | the certificate of purchase
forthwith. If the court thereafter | ||||||
19 | determines that a claim for interest
lies under this Section, | ||||||
20 | it shall award such interest from the date of sale
to the date | ||||||
21 | the principal amount was paid. If the owner of the certificate | ||||||
22 | of purchase files an objection to the county collector's | ||||||
23 | intention to declare an administrative sale in error, as | ||||||
24 | provided under subsection (c) of Section 21-310, and, | ||||||
25 | thereafter, the county collector elects to apply to the circuit | ||||||
26 | court for a sale in error under subsection (a) of Section |
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1 | 21-310, then, if the circuit court grants the county | ||||||
2 | collector's application for a sale in error, the court may not | ||||||
3 | award interest to the owner of the certificate of purchase for | ||||||
4 | the period after the mailing date of the county collector's | ||||||
5 | notice of intention to declare an administrative sale in error.
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6 | (d) When a petition for a sale in error is filed under | ||||||
7 | subsection (b) of Section 21-310, the petition shall be filed | ||||||
8 | under the order in which the court previously ordered the taxes | ||||||
9 | sold. The certificate holder shall not be required to pay a | ||||||
10 | filing fee under this Section. | ||||||
11 | (Source: P.A. 94-662, eff. 1-1-06.)
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12 | (35 ILCS 200/21-330)
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13 | Sec. 21-330. Fund for payment of interest. In counties of | ||||||
14 | under 3,000,000
inhabitants, the county board may impose a fee | ||||||
15 | of up to $100 $60 , which shall be
paid
to the county collector, | ||||||
16 | upon each person purchasing any property at a sale
held under | ||||||
17 | this Code, prior to the issuance of any certificate of | ||||||
18 | purchase.
Each person purchasing
any
property at a sale held | ||||||
19 | under this Code in a county with 3,000,000 or more
inhabitants | ||||||
20 | shall pay to the county collector,
prior to the issuance of any | ||||||
21 | certificate of purchase, a fee of $100 for each
item purchased. | ||||||
22 | That amount shall be included in the
price paid for the | ||||||
23 | certificate of purchase and the amount required to redeem
under | ||||||
24 | Section 21-355.
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25 | All sums of money received under this Section shall be paid |
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1 | by the
collector to the county treasurer of the county in which | ||||||
2 | the property is
situated for deposit into a special fund. It
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3 | shall be the duty of the county treasurer, as trustee of the | ||||||
4 | fund, to
invest the principal and income of the fund from time | ||||||
5 | to time, if not
immediately required for payments under this | ||||||
6 | Section, in investments as are
authorized by Sections 3-10009 | ||||||
7 | and 3-11002 of the Counties Code. The fund
shall be held to pay | ||||||
8 | interest and costs
by the county treasurer as trustee of the | ||||||
9 | fund. No payment shall be made
from the fund except by order of | ||||||
10 | the court declaring a sale in error under
Section 21-310, | ||||||
11 | 22-35, or 22-50
or by declaration of the county collector under | ||||||
12 | subsection (c) of Section
21-310.
Any moneys accumulated in the | ||||||
13 | fund by the county treasurer in excess of (i) $100,000 in | ||||||
14 | counties with 250,000 or less inhabitants or (ii) $500,000 in | ||||||
15 | counties with more than 250,000 inhabitants shall be paid each | ||||||
16 | year prior to the commencement of the
annual tax sale, first to | ||||||
17 | satisfy
any existing unpaid judgments entered pursuant to | ||||||
18 | Section 21-295, and any funds
remaining thereafter shall be | ||||||
19 | paid to the general fund of the county.
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20 | (Source: P.A. 94-362, eff. 7-29-05.)
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21 | (35 ILCS 200/21-385)
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22 | Sec. 21-385. Extension of period of redemption. The
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23 | purchaser or his or her assignee of property
sold for | ||||||
24 | nonpayment of general taxes or special assessments may extend
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25 | the period of redemption at any time before the expiration of |
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1 | the
original period of redemption, or thereafter prior to the | ||||||
2 | expiration of any
extended period of redemption, for a period | ||||||
3 | which will expire not later than 3
years from the date of sale, | ||||||
4 | by filing with the county clerk of
the county in which the | ||||||
5 | property is located a written notice to that
effect describing | ||||||
6 | the property, stating the date of the sale and
specifying the | ||||||
7 | extended period of redemption. If prior to the
expiration of | ||||||
8 | the period of redemption or extended period of redemption
a | ||||||
9 | petition for tax deed has been filed under Section
22-30, upon | ||||||
10 | application of the petitioner, the court shall allow the
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11 | purchaser or his or her assignee to extend the period of | ||||||
12 | redemption after
expiration of the original period or any | ||||||
13 | extended period of redemption,
provided that any extension | ||||||
14 | allowed will expire not later than 3 years from the
date of | ||||||
15 | sale , unless the certificate has been assigned to the county | ||||||
16 | collector or the county delinquent tax agent by the court which | ||||||
17 | ordered the property sold, in which case the period of | ||||||
18 | redemption shall be extended for 24 months . If the period of | ||||||
19 | redemption is extended, the purchaser or his or
her assignee | ||||||
20 | must give the notices provided for in Section 22-10 at the
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21 | specified times prior to the expiration of the extended period | ||||||
22 | of redemption by
causing a sheriff (or if he or she is | ||||||
23 | disqualified, a coroner) of the county in
which the property, | ||||||
24 | or any part thereof, is located to serve the notices as
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25 | provided in Sections 22-15 and 22-20.
The notices may also be | ||||||
26 | served as provided in Sections 22-15 and 22-20 by a
special |
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1 | process server appointed by the court under Section 22-15.
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2 | (Source: P.A. 91-209, eff. 1-1-00; 91-554, eff. 8-14-99.)".
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