Full Text of HB5747 102nd General Assembly
HB5747 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB5747 Introduced 11/16/2022, by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED: |
| |
Amends the Property Tax Code. Provides that, for the purposes of the single bidder rule, certain entities that share information, office space, or bidding strategy related to any parcel offered at a tax sale with any other registered individual are considered a related bidding entity. Provides that a registered participant that incurs damages as as a result of a violation of the single bidder rule may bring suit in the circuit court and may recover treble damages and reasonable attorney's fees.
|
| |
| | A BILL FOR |
|
| | | HB5747 | | LRB102 27243 HLH 38942 b |
|
| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 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, | 9 | | on the day and in the place specified in the notice for the | 10 | | sale
of property for taxes, and shall, between 9:00 a.m. and | 11 | | 4:00 p.m., or later at
the collector's discretion, proceed to | 12 | | offer for sale, separately and in
consecutive order, all | 13 | | property in the list on which the taxes, special
assessments, | 14 | | interest or costs have not been paid. However, in any county | 15 | | with
3,000,000 or more inhabitants, the offer for sale shall | 16 | | be made between 8:00
a.m. and 8:00 p.m. The collector's office | 17 | | shall be kept open during all hours
in which the sale is in | 18 | | progress. The sale shall be continued from day to day,
until | 19 | | all property in the delinquent list has been offered for sale. | 20 | | However,
any city, village or incorporated town interested in | 21 | | the collection of any tax
or special assessment, may, in | 22 | | default of bidders, withdraw from collection the
special | 23 | | assessment levied against any property by the corporate |
| | | HB5747 | - 2 - | LRB102 27243 HLH 38942 b |
|
| 1 | | authorities of
the city, village or incorporated town. In case | 2 | | of a withdrawal, there shall be
no sale of that property on | 3 | | account of the delinquent special assessment
thereon.
| 4 | | (b) Until January 1, 2013, in every sale of property | 5 | | pursuant to the provisions of this Code, the collector may | 6 | | employ any automated means that the collector deems | 7 | | appropriate. Beginning on January 1, 2013, either (i) the | 8 | | collector shall employ an automated bidding system that is | 9 | | programmed to accept the lowest redemption price bid by an | 10 | | eligible tax purchaser, subject to the penalty percentage | 11 | | limitation set forth in Section 21-215, or (ii) all tax sales | 12 | | shall be digitally recorded with video and audio. All bidders | 13 | | are required to personally attend the sale and, if automated | 14 | | means are used, all hardware and software used with respect to | 15 | | those automated means must be certified by the Department and | 16 | | re-certified by the Department every 5 years. If the tax sales | 17 | | are digitally recorded and no automated bidding system is | 18 | | used, then the recordings shall be maintained by the collector | 19 | | for a period of at least 3 years from the date of the tax sale. | 20 | | The changes made by this amendatory Act of the 94th General | 21 | | Assembly are declarative of existing law.
| 22 | | (b-5) For any annual tax sale conducted on or after the | 23 | | effective date of this amendatory Act of the 102nd General | 24 | | Assembly, each county collector in a county with 275,000 or | 25 | | more inhabitants shall adopt a single bidder rule sufficient | 26 | | to prohibit a tax purchaser from registering more than one |
| | | HB5747 | - 3 - | LRB102 27243 HLH 38942 b |
|
| 1 | | related bidding entity at the tax sale. The corporate | 2 | | authorities in any county with less than 275,000 inhabitants | 3 | | may, by ordinance, allow the county collector of that county | 4 | | to adopt such a single bidder rule. In any county that has | 5 | | adopted a single bidder rule under this subsection (b-5), the | 6 | | county treasurer shall include a representation and warranty | 7 | | form in each registration package attesting to compliance with | 8 | | the single bidder rule, except that the county may, by | 9 | | ordinance, opt out of this representation and warranty form | 10 | | requirement. A single bidder rule under this subsection may be | 11 | | in the following form: | 12 | | (1) A registered tax buying entity (principal) may | 13 | | only have one registered buyer at the tax sale and may not | 14 | | have a related bidding entity directly or indirectly | 15 | | register as a buyer or participate in the tax sale. A | 16 | | registered tax buying entity may not engage in any | 17 | | multiple bidding strategy for the purpose of having more | 18 | | than one related bidding entity submit bids at the tax | 19 | | sale. | 20 | | (2) A related bidding entity is defined as any | 21 | | individual, corporation, partnership, joint venture, | 22 | | limited liability company, business organization, or other | 23 | | entity that has a shareholder, partner, principal, | 24 | | officer, general partner, or other person or entity having | 25 | | (i) an ownership interest in a bidding entity in common | 26 | | with any other registered participant in the tax sale or |
| | | HB5747 | - 4 - | LRB102 27243 HLH 38942 b |
|
| 1 | | (ii) a common guarantor in connection with a source of | 2 | | financing with any other registered participant in the tax | 3 | | sale. An individual, assumed name or "doing business as" | 4 | | entity, corporation, partnership, joint venture, limited | 5 | | liability company, business organization, or other entity | 6 | | that shares information, office space, or bidding strategy | 7 | | related to any parcel offered at the tax sale with any | 8 | | other registered individual, assumed name or "doing | 9 | | business as" entity, corporation, partnership, joint | 10 | | venture, limited liability company, business organization, | 11 | | or other entity that is a registered participant is also | 12 | | considered a related bidding entity. The determination of | 13 | | whether registered entities are related so as to prohibit | 14 | | those entities from submitting duplicate bids in violation | 15 | | of the single bidder rule is at the sole and exclusive | 16 | | discretion of the county treasurer or his or her | 17 | | designated representatives. | 18 | | If a registered participant at a tax sale incurs damages | 19 | | on or after the effective date of this amendatory Act of the | 20 | | 102nd General Assembly as a result of a violation of the single | 21 | | bidder rule under this Section, then that registered | 22 | | participant may bring suit, in the circuit court of the county | 23 | | where the tax sale occurred, against the registered | 24 | | participant or participants who are alleged to have violated | 25 | | the single bidder rule. Upon a finding by the court that a | 26 | | violation of the single bidder rule occurred, the person |
| | | HB5747 | - 5 - | LRB102 27243 HLH 38942 b |
|
| 1 | | bringing suit shall recover treble damages and reasonable | 2 | | attorney's fees. An action for a violation of the single | 3 | | bidder rule must be filed within 2 years after the date of | 4 | | discovery of the violation that gave rise to the claim. | 5 | | (c) County collectors may, when applicable, eject tax | 6 | | bidders who disrupt the tax sale or use illegal bid practices. | 7 | | (Source: P.A. 102-519, eff. 8-20-21.)
|
|