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.


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A BILL FOR

 

HB4318LRB103 33270 HLH 63080 b

1    AN ACT concerning property.
 
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 22-80 and by adding Section 22-77 as follows:
 
6    (35 ILCS 200/22-77 new)
7    Sec. 22-77. Payment of surplus to the previous owner.
8    (a) This Section applies to tax deeds issued with respect
9to residential property sold under this Code on or after the
10effective date of this amendatory Act of the 103rd General
11Assembly.
12    (b) Within 30 days after recording of the tax deed, the tax
13deed grantee shall pay the surplus to the previous owner of the
14property described in the deed. For the purposes of this
15Section, the surplus shall be calculated as follows:
16        (1) If the property has been sold since recording of
17    the deed, the surplus shall be equal to the amount
18    received from the sale, minus (i) the amount that would
19    have been needed to redeem the property; (ii) the amount
20    needed to pay all encumbrances on the property; and (iii)
21    an administrative fee of $500, which may be retained by
22    the grantee to offset the costs incurred in obtaining the
23    deed; or

 

 

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1        (2) If the property has not been sold since recording
2    of the deed, the surplus shall be equal to the assessed
3    value of the property on the date the tax deed was issued,
4    as determined by the chief county assessment officer,
5    minus (i) the amount that would have been needed to redeem
6    the property; (ii) the amount needed to pay all
7    encumbrances on the property; and (iii) an administrative
8    fee of $500, which may be retained by the grantee to offset
9    the costs incurred in obtaining the deed.
10    (c) Any civil action or proceeding to enforce the
11provisions of this Section against any person may be
12instituted in the circuit court for the county in which the
13property is located.
 
14    (35 ILCS 200/22-80)
15    Sec. 22-80. Order of court setting aside tax deed;
16payments to holder of deed.
17    (a) Any order of court vacating an order directing the
18county clerk to issue a tax deed based upon a finding that the
19property was not subject to taxation or special assessment, or
20that the taxes or special assessments had been paid prior to
21the sale of the property, or that the tax sale was otherwise
22void, shall declare the tax sale to be a sale in error pursuant
23to Section 21-310 of this Act. The order shall direct the
24county collector to refund to the tax deed grantee or his or
25her successors and assigns (or, if a tax deed has not yet

 

 

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1issued, the holder of the certificate) the following amounts:
2        (1) all taxes and special assessments purchased, paid,
3    or redeemed by the tax purchaser or his or her assignee, or
4    by the tax deed grantee or his or her successors and
5    assigns, whether before or after entry of the order for
6    tax deed, with interest at the rate of 1% per month from
7    the date each amount was paid until the date of payment
8    pursuant to this Section;
9        (2) all costs paid and posted to the judgment record
10    and not included in paragraph (1) of this subsection (a);
11    and
12        (3) court reporter fees for the hearing on the
13    application for tax deed and transcript thereof, cost of
14    certification of tax deed order, cost of issuance of tax
15    deed, and cost of recording of tax deed; and .
16        (4) any surplus paid by the tax deed grantee or tax
17    purchaser under Section 22-77.
18    (b) Except in those cases described in subsection (a) of
19this Section, and unless the court on motion of the tax deed
20petitioner extends the redemption period to a date not later
21than 3 years from the date of sale, any order of court finding
22that an order directing the county clerk to issue a tax deed
23should be vacated shall direct the party who successfully
24contested the entry of the order to pay to the tax deed grantee
25or his or her successors and assigns (or, if a tax deed has not
26yet issued, the holder of the certificate) within 90 days

 

 

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1after the date of the finding:
2        (1) the amount necessary to redeem the property from
3    the sale as of the last day of the period of redemption,
4    except that, if the sale is a scavenger sale pursuant to
5    Section 21-260 of this Act, the redemption amount shall
6    not include an amount equal to all delinquent taxes on
7    such property which taxes were delinquent at the time of
8    sale; and
9        (2) amounts in satisfaction of municipal liens paid by
10    the tax purchaser or his or her assignee, and the amounts
11    specified in paragraphs (1) and (3) of subsection (a) of
12    this Section, to the extent the amounts are not included
13    in paragraph (1) of this subsection (b).
14    If the payment is not made within the 90-day period, the
15petition to vacate the order directing the county clerk to
16issue a tax deed shall be denied with prejudice, and the order
17directing the county clerk to issue a tax deed shall remain in
18full force and effect. No final order vacating any order
19directing the county clerk to issue a tax deed shall be entered
20pursuant to this subsection (b) until the payment has been
21made.
22(Source: P.A. 91-357, eff. 7-29-99.)