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