HB4318 103RD GENERAL ASSEMBLY

LRB103 33270 HLH 63080 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4318

Introduced 1/16/2024, by Rep. Curtis J. Tarver, II

SYNOPSIS AS INTRODUCED:

35 ILCS 200/22-77 new
35 ILCS 200/22-80

Amends the Property Tax Code. Provides that, within 30 days after recording of a tax deed with respect to residential property, the tax deed grantee shall pay the surplus to the previous owner of the property described in the deed. Sets forth the procedures to calculate the surplus.

A BILL FOR

AN ACT concerning property.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by changing Section 22-80 and by adding Section 22-77 as follows:

(35 ILCS 200/22-77 new)

Sec. 22-77. Payment of surplus to the previous owner.

(a) This Section applies to tax deeds issued with respect to residential property sold under this Code on or after the effective date of this amendatory Act of the 103rd General Assembly.

(b) Within 30 days after recording of the tax deed, the tax deed grantee shall pay the surplus to the previous owner of the property described in the deed. For the purposes of this Section, the surplus shall be calculated as follows:

(1) If the property has been sold since recording of the deed, the surplus shall be equal to the amount received from the sale, minus (i) the amount that would have been needed to redeem the property; (ii) the amount needed to pay all encumbrances on the property; and (iii) an administrative fee of $500, which may be retained by the grantee to offset the costs incurred in obtaining the deed; or

(2) If the property has not been sold since recording of the deed, the surplus shall be equal to the assessed value of the property on the date the tax deed was issued, as determined by the chief county assessment officer, minus (i) the amount that would have been needed to redeem the property; (ii) the amount needed to pay all encumbrances on the property; and (iii) an administrative fee of $500, which may be retained by the grantee to offset the costs incurred in obtaining the deed.

(c) Any civil action or proceeding to enforce the provisions of this Section against any person may be instituted in the circuit court for the county in which the property is located.

(35 ILCS 200/22-80)

Sec. 22-80. Order of court setting aside tax deed; payments to holder of deed.

(a) Any order of court vacating an order directing the county clerk to issue a tax deed based upon a finding that the property was not subject to taxation or special assessment, or that the taxes or special assessments had been paid prior to the sale of the property, or that the tax sale was otherwise void, shall declare the tax sale to be a sale in error pursuant to Section 21-310 of this Act. The order shall direct the county collector to refund to the tax deed grantee or his or her successors and assigns (or, if a tax deed has not yet issued, the holder of the certificate) the following amounts:

(1) all taxes and special assessments purchased, paid, or redeemed by the tax purchaser or his or her assignee, or by the tax deed grantee or his or her successors and assigns, whether before or after entry of the order for tax deed, with interest at the rate of 1% per month from the date each amount was paid until the date of payment pursuant to this Section;

(2) all costs paid and posted to the judgment record and not included in paragraph (1) of this subsection (a); and

(3) court reporter fees for the hearing on the application for tax deed and transcript thereof, cost of certification of tax deed order, cost of issuance of tax deed, and cost of recording of tax deed; and .

(4) any surplus paid by the tax deed grantee or tax purchaser under Section 22-77.

(b) Except in those cases described in subsection (a) of this Section, and unless the court on motion of the tax deed petitioner extends the redemption period to a date not later than 3 years from the date of sale, any order of court finding that an order directing the county clerk to issue a tax deed should be vacated shall direct the party who successfully contested the entry of the order to pay to the tax deed grantee or his or her successors and assigns (or, if a tax deed has not yet issued, the holder of the certificate) within 90 days after the date of the finding:

(1) the amount necessary to redeem the property from the sale as of the last day of the period of redemption, except that, if the sale is a scavenger sale pursuant to Section 21-260 of this Act, the redemption amount shall not include an amount equal to all delinquent taxes on such property which taxes were delinquent at the time of sale; and

(2) amounts in satisfaction of municipal liens paid by the tax purchaser or his or her assignee, and the amounts specified in paragraphs (1) and (3) of subsection (a) of this Section, to the extent the amounts are not included in paragraph (1) of this subsection (b).

If the payment is not made within the 90-day period, the petition to vacate the order directing the county clerk to issue a tax deed shall be denied with prejudice, and the order directing the county clerk to issue a tax deed shall remain in full force and effect. No final order vacating any order directing the county clerk to issue a tax deed shall be entered pursuant to this subsection (b) until the payment has been made.

(Source: P.A. 91-357, eff. 7-29-99.)