101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4550

 

Introduced 2/5/2020, by Rep. Lamont J. Robinson, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-310

    Amends the Property Tax Code. In provisions requiring the court to declare a sale in error in the case of an error by the assessor, chief county assessment officer, board of review, board of appeals, or other county official, provides that the error must be material to the tax sale at issue and may not include an error in the description of the physical characteristics or location of any property displayed on the website of any county assessing official. Provides that, if the legal or beneficial owner of the property requests bankruptcy relief, a sale in error shall be granted only if the property is subject to an automatic stay pursuant to the bankruptcy petition, and the petition is active as of the date on which the petition for sale in error is filed. Effective immediately.


LRB101 16257 HLH 65630 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4550LRB101 16257 HLH 65630 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 21-310 as follows:
 
6    (35 ILCS 200/21-310)
7    Sec. 21-310. Sales in error.
8    (a) When, upon application of the county collector, the
9owner of the certificate of purchase, or a municipality which
10owns or has owned the property ordered sold, it appears to the
11satisfaction of the court which ordered the property sold that
12any of the following subsections are applicable, the court
13shall declare the sale to be a sale in error:
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,
19        (2) the taxes or special assessments had been paid
20    prior to the sale of the property,
21        (3) there is a double assessment,
22        (4) the description is void for uncertainty,
23        (5) the assessor, chief county assessment officer,

 

 

HB4550- 2 -LRB101 16257 HLH 65630 b

1    board of review, board of appeals, or other county official
2    has made an error material to the tax sale at issue (other
3    than an error of judgment as to the value of any property
4    or an error in the description of the physical
5    characteristics or location of any property displayed on
6    the website of any county assessing official),
7        (5.5) the owner of the homestead property had tendered
8    timely and full payment to the county collector that the
9    owner reasonably believed was due and owing on the
10    homestead property, and the county collector did not apply
11    the payment to the homestead property; provided that this
12    provision applies only to homeowners, not their agents or
13    third-party payors,
14        (6) prior to the tax sale a voluntary or involuntary
15    petition has been filed by or against the legal or
16    beneficial owner of the property requesting relief under
17    the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13, the
18    property is subject to an automatic stay pursuant to that
19    petition, and that petition is active on the date of the
20    application for judgment and order of sale or the date of
21    the tax sale,
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.

 

 

HB4550- 3 -LRB101 16257 HLH 65630 b

1    (b) When, upon application of the owner of the certificate
2of purchase only, it appears to the satisfaction of the court
3which ordered the property sold that any of the following
4subsections are applicable, the court shall declare the sale to
5be a sale in error:
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, the property is subject to an automatic
10    stay pursuant to that petition, and that petition is active
11    as of the date on which the petition for sale in error is
12    filed.
13        (2) The improvements upon the property sold have been
14    substantially destroyed or rendered uninhabitable or
15    otherwise unfit for occupancy subsequent to the tax sale
16    and prior to the issuance of the tax deed; however, if the
17    court declares a sale in error under this paragraph (2),
18    the court may order the holder of the certificate of
19    purchase to assign the certificate to the county collector
20    if requested by the county collector. The county collector
21    may, upon request of the county, as trustee, or upon
22    request of a taxing district having an interest in the
23    taxes sold, further assign any certificate of purchase
24    received pursuant to this paragraph (2) to the county
25    acting as trustee for taxing districts pursuant to Section
26    21-90 of this Code or to the taxing district having an

 

 

HB4550- 4 -LRB101 16257 HLH 65630 b

1    interest in the taxes sold.
2        (3) There is an interest held by the United States in
3    the property sold which could not be extinguished by the
4    tax deed.
5        (4) The real property contains a hazardous substance,
6    hazardous waste, or underground storage tank that would
7    require cleanup or other removal under any federal, State,
8    or local law, ordinance, or regulation, only if the tax
9    purchaser purchased the property without actual knowledge
10    of the hazardous substance, hazardous waste, or
11    underground storage tank. This paragraph (4) applies only
12    if the owner of the certificate of purchase has made
13    application for a sale in error at any time before the
14    issuance of a tax deed. If the court declares a sale in
15    error under this paragraph (4), the court may order the
16    holder of the certificate of purchase to assign the
17    certificate to the county collector if requested by the
18    county collector. The county collector may, upon request of
19    the county, as trustee, or upon request of a taxing
20    district having an interest in the taxes sold, further
21    assign any certificate of purchase received pursuant to
22    this paragraph (4) to the county acting as trustee for
23    taxing districts pursuant to Section 21-90 of this Code or
24    to the taxing district having an interest in the taxes
25    sold.
26    Whenever a court declares a sale in error under this

 

 

HB4550- 5 -LRB101 16257 HLH 65630 b

1subsection (b), the court shall promptly notify the county
2collector in writing. Every such declaration pursuant to any
3provision of this subsection (b) shall be made within the
4proceeding in which the tax sale was authorized.
5    (c) When the county collector discovers, prior to the
6expiration of the period of redemption, that a tax sale should
7not have occurred for one or more of the reasons set forth in
8subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
9the county collector shall notify the last known owner of the
10certificate of purchase by certified and regular mail, or other
11means reasonably calculated to provide actual notice, that the
12county collector intends to declare an administrative sale in
13error and of the reasons therefor, including documentation
14sufficient to establish the reason why the sale should not have
15occurred. The owner of the certificate of purchase may object
16in writing within 28 days after the date of the mailing by the
17county collector. If an objection is filed, the county
18collector shall not administratively declare a sale in error,
19but may apply to the circuit court for a sale in error as
20provided in subsection (a) of this Section. Thirty days
21following the receipt of notice by the last known owner of the
22certificate of purchase, or within a reasonable time
23thereafter, the county collector shall make a written
24declaration, based upon clear and convincing evidence, that the
25taxes were sold in error and shall deliver a copy thereof to
26the county clerk within 30 days after the date the declaration

 

 

HB4550- 6 -LRB101 16257 HLH 65630 b

1is made for entry in the tax judgment, sale, redemption, and
2forfeiture record pursuant to subsection (d) of this Section.
3The county collector shall promptly notify the last known owner
4of the certificate of purchase of the declaration by regular
5mail and shall promptly pay the amount of the tax sale,
6together with interest and costs as provided in Section 21-315,
7upon surrender of the original certificate of purchase.
8    (d) If a sale is declared to be a sale in error, the county
9clerk shall make entry in the tax judgment, sale, redemption
10and forfeiture record, that the property was erroneously sold,
11and the county collector shall, on demand of the owner of the
12certificate of purchase, refund the amount paid, pay any
13interest and costs as may be ordered under Sections 21-315
14through 21-335, and cancel the certificate so far as it relates
15to the property. The county collector shall deduct from the
16accounts of the appropriate taxing bodies their pro rata
17amounts paid. Alternatively, for sales in error declared under
18subsection (b)(2) or (b)(4), the county collector may request
19the circuit court to direct the county clerk to record any
20assignment of the tax certificate to or from the county
21collector without charging a fee for the assignment. The owner
22of the certificate of purchase shall receive all statutory
23refunds and payments. The county collector shall deduct costs
24and payments in the same manner as if a sale in error had
25occurred.
26    (e) The changes made to this Section by this amendatory Act

 

 

HB4550- 7 -LRB101 16257 HLH 65630 b

1of the 101st General Assembly apply only to tax sales commenced
2on or after January 1, 2021.
3(Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.