HB4804 100TH GENERAL ASSEMBLY

LRB100 17222 HLH 32381 b

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.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by changing Section 21-205 as follows:

(35 ILCS 200/21-205)

Sec. 21-205. Tax sale procedures.

(a) The collector, in person or by deputy, shall attend, on the day and in the place specified in the notice for the sale of property for taxes, and shall, between 9:00 a.m. and 4:00 p.m., or later at the collector's discretion, proceed to offer for sale, separately and in consecutive order, all property in the list on which the taxes, special assessments, interest or costs have not been paid. However, in any county with 3,000,000 or more inhabitants, the offer for sale shall be made between 8:00 a.m. and 8:00 p.m. The collector's office shall be kept open during all hours in which the sale is in progress. The sale shall be continued from day to day, until all property in the delinquent list has been offered for sale. However, any city, village or incorporated town interested in the collection of any tax or special assessment, may, in default of bidders, withdraw from collection the special assessment levied against any property by the corporate authorities of the city, village or incorporated town. In case of a withdrawal, there shall be no sale of that property on account of the delinquent special assessment thereon.

Until January 1, 2013, in every sale of property pursuant to the provisions of this Code, the collector may employ any automated means that the collector deems appropriate. Beginning on January 1, 2013, either (i) the collector shall employ an automated bidding system that is programmed to accept the lowest redemption price bid by an eligible tax purchaser, subject to the penalty percentage limitation set forth in Section 21-215, or (ii) all tax sales shall be digitally recorded with video and audio. All bidders are required to personally attend the sale and, if automated means are used, all hardware and software used with respect to those automated means must be certified by the Department and re-certified by the Department every 5 years. If the tax sales are digitally recorded and no automated bidding system is used, then the recordings shall be maintained by the collector for a period of at least 3 years from the date of the tax sale. The changes made by this amendatory Act of the 94th General Assembly are declarative of existing law.

(b) For tax sales conducted on or after the effective date of this amendatory Act of the 100th General Assembly, each county collector shall adopt a single bidder rule. The single bidder rule shall prohibit a tax purchaser from registering more than one related bidding entity. Each bidding entity shall register only once for the purpose of bidding on or purchasing tax lien certificates and may not maintain multiple registrations for the purpose of increasing the principal's likelihood of obtaining a successful bid on a parcel. A tax purchaser shall not have a financial, legal, or contractual relationship with any other bidder or bidding entity registered in the same tax sale. No bidder shall employ or participate in any post-sale certificate transfer strategy intended to circumvent the spirit of the single bidder rule.

A person who knowingly violates a single bidder rule adopted by a county collector under this Section is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for a second or subsequent offense. A person who is convicted of a second or subsequent offense of knowingly violating a single bidder rule is prohibited from any future participation in tax sales under this Act within the State.

For purposes of this subsection (b):

"Related bidding entity" means any individual, corporation, partnership, joint venture, limited liability company, business organization, or other individual or commercial formation that has a shareholder, member, partner, principal, officer, general partner, or other person or entity having an ownership interest in common with, or a contractual relationship with, any other registered participant in the same annual tax sale.

"Contractual, legal, or financial relationship" means 2 or more individuals, corporate entities, shareholders, principals, officers, partnerships, general or limited partners, or other commercial ventures that have any type of ownership interest in common.

It is prima facie evidence that a financial, legal, contractual, or bidding relationship exists when 2 or more bidding entities display any of the following characteristics:

(1) they share a single registration or Taxpayer Identification Number (TIN);

(2) they report earnings using a single tax return;

(3) they reside or are domiciled at the same address;

(4) they share common employees;

(5) they display non-competitive bidding behavior;

(6) they share a common pool of capital; or

(7) they employ any bidding or registration strategy meant to gain an advantage when determining the winner among tie bids.

(Source: P.A. 97-557, eff. 7-1-12; 97-1125, eff. 8-28-12.)

Section 99. Effective date. This Act takes effect upon becoming law.