103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2165

 

Introduced 2/7/2023, by Rep. Margaret Croke

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-295

    Amends the Property Tax Code. Provides that in counties of 3,000,000 or more inhabitants, the holder of a tax lien certificate on property sold under the Code shall pay to the County Collector an additional 2.5% of the subsequent taxes, interest, and penalties paid by the tax purchaser and posted to the tax judgment, sale, redemption, and forfeiture record. Effective immediately.


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A BILL FOR

 

HB2165LRB103 06056 HLH 51086 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 21-295 as follows:
 
6    (35 ILCS 200/21-295)
7    Sec. 21-295. Creation of indemnity fund.
8    (a) In counties of less than 3,000,000 inhabitants, each
9person purchasing any property at a sale under this Code shall
10pay to the County Collector, prior to the issuance of any
11certificate of purchase, an indemnity fee set by the county
12collector of not more than $20 for each item purchased. A like
13sum shall be paid for each year that all or a portion of
14subsequent taxes are paid by the tax purchaser and posted to
15the tax judgment, sale, redemption and forfeiture record where
16the underlying certificate of purchase is recorded.
17    (a-5) In counties of 3,000,000 or more inhabitants, each
18person purchasing property at a sale under this Code shall pay
19to the County Collector a nonrefundable fee of $80 for each
20item purchased plus an additional sum equal to 5% of the taxes,
21interest, and penalties paid under Section 21-240. In these
22counties, the certificate holder shall also pay to the County
23Collector a fee of $80 for each year that all or a portion of

 

 

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1subsequent taxes are paid by the tax purchaser and posted to
2the tax judgment, sale, redemption, and forfeiture record
3together with an additional 2.5% of the subsequent taxes,
4interest, and penalties paid by the tax purchaser and posted
5to the tax judgment, sale, redemption, and forfeiture record.
6The changes to this subsection made by this amendatory Act of
7the 91st General Assembly are not a new enactment, but
8declaratory of existing law.
9    (b) The amount paid prior to issuance of the certificate
10of purchase pursuant to subsection (a) or (a-5) shall be
11included in the purchase price of the property in the
12certificate of purchase and all amounts paid under this
13Section shall be included in the amount required to redeem
14under Section 21-355, except for the nonrefundable $80 fee for
15each item purchased at the tax sale as provided in this
16Section. Except as otherwise provided in subsection (b) of
17Section 21-300, all money received under subsection (a) or
18(a-5) shall be paid by the Collector to the County Treasurer of
19the County in which the land is situated, for the purpose of an
20indemnity fund. The County Treasurer, as trustee of that fund,
21shall invest all of that fund, principal and income, in his or
22her hands from time to time, if not immediately required for
23payments of indemnities under subsection (a) of Section
2421-305, in investments permitted by the Illinois State Board
25of Investment under Article 22A of the Illinois Pension Code.
26The county collector shall report annually to the county clerk

 

 

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1on the condition and income of the fund. The indemnity fund
2shall be held to satisfy judgments obtained against the County
3Treasurer, as trustee of the fund. No payment shall be made
4from the fund, except upon a judgment of the court which
5ordered the issuance of a tax deed.
6(Source: P.A. 100-1070, eff. 1-1-19; 101-659, eff. 3-23-21.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.