100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4804

 

Introduced , by Rep. Joe Sosnowski

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-205

    Amends the Property Tax Code. Requires county collectors to adopt a single bidder rule sufficient to prohibit a tax purchaser from registering more than one related bidding entity. Provides that violation of a single bidder rule is a Class A misdemeanor for a first offense and a Class 4 felony for a second or subsequent offense. Provides that a second or subsequent offense shall operate as a bar to any future participation in tax sales within Illinois. Effective immediately.


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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 21-205 as follows:
 
6    (35 ILCS 200/21-205)
7    Sec. 21-205. Tax sale procedures.
8    (a) The collector, in person or by deputy, shall attend, on
9the day and in the place specified in the notice for the sale
10of property for taxes, and shall, between 9:00 a.m. and 4:00
11p.m., or later at the collector's discretion, proceed to offer
12for sale, separately and in consecutive order, all property in
13the list on which the taxes, special assessments, interest or
14costs have not been paid. However, in any county with 3,000,000
15or more inhabitants, the offer for sale shall be made between
168:00 a.m. and 8:00 p.m. The collector's office shall be kept
17open during all hours in which the sale is in progress. The
18sale shall be continued from day to day, until all property in
19the delinquent list has been offered for sale. However, any
20city, village or incorporated town interested in the collection
21of any tax or special assessment, may, in default of bidders,
22withdraw from collection the special assessment levied against
23any property by the corporate authorities of the city, village

 

 

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1or incorporated town. In case of a withdrawal, there shall be
2no sale of that property on account of the delinquent special
3assessment thereon.
4    Until January 1, 2013, in every sale of property pursuant
5to the provisions of this Code, the collector may employ any
6automated means that the collector deems appropriate.
7Beginning on January 1, 2013, either (i) the collector shall
8employ an automated bidding system that is programmed to accept
9the lowest redemption price bid by an eligible tax purchaser,
10subject to the penalty percentage limitation set forth in
11Section 21-215, or (ii) all tax sales shall be digitally
12recorded with video and audio. All bidders are required to
13personally attend the sale and, if automated means are used,
14all hardware and software used with respect to those automated
15means must be certified by the Department and re-certified by
16the Department every 5 years. If the tax sales are digitally
17recorded and no automated bidding system is used, then the
18recordings shall be maintained by the collector for a period of
19at least 3 years from the date of the tax sale. The changes
20made by this amendatory Act of the 94th General Assembly are
21declarative of existing law.
22    (b) For tax sales conducted on or after the effective date
23of this amendatory Act of the 100th General Assembly, each
24county collector shall adopt a single bidder rule. The single
25bidder rule shall prohibit a tax purchaser from registering
26more than one related bidding entity. Each bidding entity shall

 

 

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1register only once for the purpose of bidding on or purchasing
2tax lien certificates and may not maintain multiple
3registrations for the purpose of increasing the principal's
4likelihood of obtaining a successful bid on a parcel. A tax
5purchaser shall not have a financial, legal, or contractual
6relationship with any other bidder or bidding entity registered
7in the same tax sale. No bidder shall employ or participate in
8any post-sale certificate transfer strategy intended to
9circumvent the spirit of the single bidder rule.
10    A person who knowingly violates a single bidder rule
11adopted by a county collector under this Section is guilty of a
12Class A misdemeanor for a first offense and a Class 4 felony
13for a second or subsequent offense. A person who is convicted
14of a second or subsequent offense of knowingly violating a
15single bidder rule is prohibited from any future participation
16in tax sales under this Act within the State.
17    For purposes of this subsection (b):
18        "Related bidding entity" means any individual,
19    corporation, partnership, joint venture, limited liability
20    company, business organization, or other individual or
21    commercial formation that has a shareholder, member,
22    partner, principal, officer, general partner, or other
23    person or entity having an ownership interest in common
24    with, or a contractual relationship with, any other
25    registered participant in the same annual tax sale.
26        "Contractual, legal, or financial relationship" means

 

 

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1    2 or more individuals, corporate entities, shareholders,
2    principals, officers, partnerships, general or limited
3    partners, or other commercial ventures that have any type
4    of ownership interest in common.
5        It is prima facie evidence that a financial, legal,
6    contractual, or bidding relationship exists when 2 or more
7    bidding entities display any of the following
8    characteristics:
9        (1) they share a single registration or Taxpayer
10    Identification Number (TIN);
11        (2) they report earnings using a single tax return;
12        (3) they reside or are domiciled at the same address;
13        (4) they share common employees;
14        (5) they display non-competitive bidding behavior;
15        (6) they share a common pool of capital; or
16        (7) they employ any bidding or registration strategy
17    meant to gain an advantage when determining the winner
18    among tie bids.
19(Source: P.A. 97-557, eff. 7-1-12; 97-1125, eff. 8-28-12.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.