102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0858

 

Introduced 2/10/2021, by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-310

    Amends the Property Tax Code. In provisions requiring the court to declare a sale in error when the assessor, chief county assessment officer, board of review, board of appeals, or other county official has made an error, provides that the error must be material to the tax sale at issue. Provides that those provisions do not apply if the error is in the description of the physical characteristics or location of any property displayed on the website of any county assessing official. Provides that, in the case of a sale in error where a voluntary or involuntary bankruptcy petition has been filed, the sale in error shall be granted if the property is subject to an automatic stay pursuant to that petition and the petition is active on the date of the application or the date of the tax sale. Effective immediately.


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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 21-310 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
15    or any part of the lien of taxes sold has become null and
16    void pursuant to Section 21-95 or unenforceable pursuant
17    to 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,

 

 

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

 

 

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1    guardsperson who is granted an extension of his or her due
2    date under Sections 21-15, 21-20, and 21-25 of this Act.
3    (b) When, upon application of the owner of the certificate
4of purchase only, it appears to the satisfaction of the court
5which ordered the property sold that any of the following
6subsections are applicable, the court shall declare the sale
7to be a sale in error:
8        (1) A voluntary or involuntary petition under the
9    provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
10    filed subsequent to the tax sale and prior to the issuance
11    of the tax deed, the property is subject to an automatic
12    stay pursuant to that petition, and that petition is
13    active as of the date on which the petition for sale in
14    error is filed.
15        (2) The improvements upon the property sold have been
16    substantially destroyed or rendered uninhabitable or
17    otherwise unfit for occupancy subsequent to the tax sale
18    and prior to the issuance of the tax deed; however, if the
19    court declares a sale in error under this paragraph (2),
20    the court may order the holder of the certificate of
21    purchase to assign the certificate to the county collector
22    if requested by the county collector. The county collector
23    may, upon request of the county, as trustee, or upon
24    request of a taxing district having an interest in the
25    taxes sold, further assign any certificate of purchase
26    received pursuant to this paragraph (2) to the county

 

 

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

 

 

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

 

 

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1the taxes were sold in error and shall deliver a copy thereof
2to the county clerk within 30 days after the date the
3declaration is made for entry in the tax judgment, sale,
4redemption, and forfeiture record pursuant to subsection (d)
5of this Section. The county collector shall promptly notify
6the last known owner of the certificate of purchase of the
7declaration by regular mail and shall promptly pay the amount
8of the tax sale, together with interest and costs as provided
9in Section 21-315, upon surrender of the original certificate
10of purchase.
11    (d) If a sale is declared to be a sale in error, the county
12clerk shall make entry in the tax judgment, sale, redemption
13and forfeiture record, that the property was erroneously sold,
14and the county collector shall, on demand of the owner of the
15certificate of purchase, refund the amount paid, pay any
16interest and costs as may be ordered under Sections 21-315
17through 21-335, and cancel the certificate so far as it
18relates to the property. The county collector shall deduct
19from the accounts of the appropriate taxing bodies their pro
20rata amounts paid. Alternatively, for sales in error declared
21under subsection (b)(2) or (b)(4), the county collector may
22request the circuit court to direct the county clerk to record
23any assignment of the tax certificate to or from the county
24collector without charging a fee for the assignment. The owner
25of the certificate of purchase shall receive all statutory
26refunds and payments. The county collector shall deduct costs

 

 

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1and payments in the same manner as if a sale in error had
2occurred.
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.