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Full Text of SB3097  102nd General Assembly

SB3097 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3097

 

Introduced 1/11/2022, by Sen. Mattie Hunter

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-260

    Amends the Property Tax Code. Provides that, after filing a petition to obtain a tax deed, the owner of a certificate of purchase must file with the clerk of the circuit court (currently, the county clerk) the names and addresses of persons who are entitled to service of notice. Effective January 1, 2022.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3097LRB102 20576 HLH 29446 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 21-260 as follows:
 
6    (35 ILCS 200/21-260)
7    Sec. 21-260. Collector's scavenger sale. Upon the county
8collector's application under Section 21-145, to be known as
9the Scavenger Sale Application, the Court shall enter judgment
10for the general taxes, special taxes, special assessments,
11interest, penalties and costs as are included in the
12advertisement and appear to be due thereon after allowing an
13opportunity to object and a hearing upon the objections as
14provided in Section 21-175, and order those properties sold by
15the County Collector at public sale, or by electronic
16automated sale if the collector chooses to conduct an
17electronic automated sale pursuant to Section 21-261, to the
18highest bidder for cash, notwithstanding the bid may be less
19than the full amount of taxes, special taxes, special
20assessments, interest, penalties and costs for which judgment
21has been entered.
22    (a) Conducting the sale - Bidding. All properties shall be
23offered for sale in consecutive order as they appear in the

 

 

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1delinquent list. The minimum bid for any property shall be
2$250 or one-half of the tax if the total liability is less than
3$500. For in-person scavenger sales, the successful bidder
4shall pay the amount of minimum bid to the County Collector by
5the end of the business day on which the bid was placed. That
6amount shall be paid in cash, by certified or cashier's check,
7by money order, or, if the successful bidder is a governmental
8unit, by a check issued by that governmental unit. For
9electronic automated scavenger sales, the successful bidder
10shall pay the minimum bid amount by the close of the business
11day on which the bid was placed. That amount shall be paid
12online via ACH debit or by the electronic payment method
13required by the county collector. For in-person scavenger
14sales, if the bid exceeds the minimum bid, the successful
15bidder shall pay the balance of the bid to the county collector
16in cash, by certified or cashier's check, by money order, or,
17if the successful bidder is a governmental unit, by a check
18issued by that governmental unit by the close of the next
19business day. For electronic automated scavenger sales, the
20successful bidder shall pay, by the close of the next business
21day, the balance of the bid online via ACH debit or by the
22electronic payment method required by the county collector. If
23the minimum bid is not paid at the time of sale or if the
24balance is not paid by the close of the next business day, then
25the sale is void and the minimum bid, if paid, is forfeited to
26the county general fund. In that event, the property shall be

 

 

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1reoffered for sale within 30 days of the last offering of
2property in regular order. The collector shall make available
3to the public a list of all properties to be included in any
4reoffering due to the voiding of the original sale. The
5collector is not required to serve or publish any other notice
6of the reoffering of those properties. In the event that any of
7the properties are not sold upon reoffering, or are sold for
8less than the amount of the original voided sale, the original
9bidder who failed to pay the bid amount shall remain liable for
10the unpaid balance of the bid in an action under Section
1121-240. Liability shall not be reduced where the bidder upon
12reoffering also fails to pay the bid amount, and in that event
13both bidders shall remain liable for the unpaid balance of
14their respective bids. A sale of properties under this Section
15shall not be final until confirmed by the court.
16    (b) Confirmation of sales. The county collector shall file
17his or her report of sale in the court within 30 days of the
18date of sale of each property. No notice of the county
19collector's application to confirm the sales shall be required
20except as prescribed by rule of the court. Upon confirmation,
21except in cases where the sale becomes void under Section
2222-85, or in cases where the order of confirmation is vacated
23by the court, a sale under this Section shall extinguish the in
24rem lien of the general taxes, special taxes and special
25assessments for which judgment has been entered and a
26redemption shall not revive the lien. Confirmation of the sale

 

 

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1shall in no event affect the owner's personal liability to pay
2the taxes, interest and penalties as provided in this Code or
3prevent institution of a proceeding under Section 21-440 to
4collect any amount that may remain due after the sale.
5    (c) Issuance of tax sale certificates. Upon confirmation
6of the sale the County Clerk and the County Collector shall
7issue to the purchaser a certificate of purchase in the form
8prescribed by Section 21-250 as near as may be. A certificate
9of purchase shall not be issued to any person who is ineligible
10to bid at the sale or to receive a certificate of purchase
11under Section 21-265.
12    (d) Scavenger Tax Judgment, Sale and Redemption Record -
13Sale of parcels not sold. The county collector shall prepare a
14Scavenger Tax Judgment, Sale and Redemption Record. The county
15clerk shall write or stamp on the scavenger tax judgment,
16sale, forfeiture and redemption record opposite the
17description of any property offered for sale and not sold, or
18not confirmed for any reason, the words "offered but not
19sold". The properties which are offered for sale under this
20Section and not sold or not confirmed shall be offered for sale
21annually thereafter in the manner provided in this Section
22until sold, except in the case of mineral rights, which after
2310 consecutive years of being offered for sale under this
24Section and not sold or confirmed shall no longer be required
25to be offered for sale. At any time between annual sales the
26County Collector may advertise for sale any properties subject

 

 

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1to sale under judgments for sale previously entered under this
2Section and not executed for any reason. The advertisement and
3sale shall be regulated by the provisions of this Code as far
4as applicable.
5    (e) Proceeding to tax deed. The owner of the certificate
6of purchase shall give notice as required by Sections 22-5
7through 22-30, and may extend the period of redemption as
8provided by Section 21-385. At any time within 6 months prior
9to expiration of the period of redemption from a sale under
10this Code, the owner of a certificate of purchase may file a
11petition and may obtain a tax deed under Sections 22-30
12through 22-55. Within 30 days from filing of the petition, the
13owner of a certificate must file with the clerk of the circuit
14court county clerk the names and addresses of the owners of the
15property and those persons entitled to service of notice at
16their last known addresses. The clerk shall mail notice within
1730 days from the date of the filing of addresses with the
18clerk. All proceedings for the issuance of a tax deed and all
19tax deeds for properties sold under this Section shall be
20subject to Sections 22-30 through 22-55. Deeds issued under
21this Section are subject to Section 22-70. This Section shall
22be liberally construed so that the deeds provided for in this
23Section convey merchantable title.
24    (f) Redemptions from scavenger sales. Redemptions may be
25made from sales under this Section in the same manner and upon
26the same terms and conditions as redemptions from sales made

 

 

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1under the County Collector's annual application for judgment
2and order of sale, except that in lieu of penalty the person
3redeeming shall pay interest as follows if the sale occurs
4before September 9, 1993:
5        (1) If redeemed within the first 2 months from the
6    date of the sale, 3% per month or portion thereof upon the
7    amount for which the property was sold;
8        (2) If redeemed between 2 and 6 months from the date of
9    the sale, 12% of the amount for which the property was
10    sold;
11        (3) If redeemed between 6 and 12 months from the date
12    of the sale, 24% of the amount for which the property was
13    sold;
14        (4) If redeemed between 12 and 18 months from the date
15    of the sale, 36% of the amount for which the property was
16    sold;
17        (5) If redeemed between 18 and 24 months from the date
18    of the sale, 48% of the amount for which the property was
19    sold;
20        (6) If redeemed after 24 months from the date of sale,
21    the 48% herein provided together with interest at 6% per
22    year thereafter.
23    If the sale occurs on or after September 9, 1993, the
24person redeeming shall pay interest on that part of the amount
25for which the property was sold equal to or less than the full
26amount of delinquent taxes, special assessments, penalties,

 

 

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1interest, and costs, included in the judgment and order of
2sale as follows:
3        (1) If redeemed within the first 2 months from the
4    date of the sale, 3% per month upon the amount of taxes,
5    special assessments, penalties, interest, and costs due
6    for each of the first 2 months, or fraction thereof.
7        (2) If redeemed at any time between 2 and 6 months from
8    the date of the sale, 12% of the amount of taxes, special
9    assessments, penalties, interest, and costs due.
10        (3) If redeemed at any time between 6 and 12 months
11    from the date of the sale, 24% of the amount of taxes,
12    special assessments, penalties, interest, and costs due.
13        (4) If redeemed at any time between 12 and 18 months
14    from the date of the sale, 36% of the amount of taxes,
15    special assessments, penalties, interest, and costs due.
16        (5) If redeemed at any time between 18 and 24 months
17    from the date of the sale, 48% of the amount of taxes,
18    special assessments, penalties, interest, and costs due.
19        (6) If redeemed after 24 months from the date of sale,
20    the 48% provided for the 24 months together with interest
21    at 6% per annum thereafter on the amount of taxes, special
22    assessments, penalties, interest, and costs due.
23    The person redeeming shall not be required to pay any
24interest on any part of the amount for which the property was
25sold that exceeds the full amount of delinquent taxes, special
26assessments, penalties, interest, and costs included in the

 

 

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1judgment and order of sale.
2    Notwithstanding any other provision of this Section,
3except for owner-occupied single family residential units
4which are condominium units, cooperative units or dwellings,
5the amount required to be paid for redemption shall also
6include an amount equal to all delinquent taxes on the
7property which taxes were delinquent at the time of sale. The
8delinquent taxes shall be apportioned by the county collector
9among the taxing districts in which the property is situated
10in accordance with law. In the event that all moneys received
11from any sale held under this Section exceed an amount equal to
12all delinquent taxes on the property sold, which taxes were
13delinquent at the time of sale, together with all publication
14and other costs associated with the sale, then, upon
15redemption, the County Collector and the County Clerk shall
16apply the excess amount to the cost of redemption.
17    (g) Bidding by county or other taxing districts. Any
18taxing district may bid at a scavenger sale. The county board
19of the county in which properties offered for sale under this
20Section are located may bid as trustee for all taxing
21districts having an interest in the taxes for the nonpayment
22of which the parcels are offered. The County shall apply on the
23bid the unpaid taxes due upon the property and no cash need be
24paid. The County or other taxing district acquiring a tax sale
25certificate shall take all steps necessary to acquire title to
26the property and may manage and operate the property so

 

 

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1acquired.
2    When a county, or other taxing district within the county,
3is a petitioner for a tax deed, no filing fee shall be required
4on the petition. The county as a tax creditor and as trustee
5for other tax creditors, or other taxing district within the
6county shall not be required to allege and prove that all taxes
7and special assessments which become due and payable after the
8sale to the county have been paid. The county shall not be
9required to pay the subsequently accruing taxes or special
10assessments at any time. Upon the written request of the
11county board or its designee, the county collector shall not
12offer the property for sale at any tax sale subsequent to the
13sale of the property to the county under this Section. The lien
14of taxes and special assessments which become due and payable
15after a sale to a county shall merge in the fee title of the
16county, or other taxing district, on the issuance of a deed.
17The County may sell the properties so acquired, or the
18certificate of purchase thereto, and the proceeds of the sale
19shall be distributed to the taxing districts in proportion to
20their respective interests therein. The presiding officer of
21the county board, with the advice and consent of the County
22Board, may appoint some officer or person to attend scavenger
23sales and bid on its behalf.
24    (h) Miscellaneous provisions. In the event that the tract
25of land or lot sold at any such sale is not redeemed within the
26time permitted by law and a tax deed is issued, all moneys that

 

 

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1may be received from the sale of properties in excess of the
2delinquent taxes, together with all publication and other
3costs associated with the sale, shall, upon petition of any
4interested party to the court that issued the tax deed, be
5distributed by the County Collector pursuant to order of the
6court among the persons having legal or equitable interests in
7the property according to the fair value of their interests in
8the tract or lot. Section 21-415 does not apply to properties
9sold under this Section. Appeals may be taken from the orders
10and judgments entered under this Section as in other civil
11cases. The remedy herein provided is in addition to other
12remedies for the collection of delinquent taxes.
13    (i) The changes to this Section made by Public Act 95-477
14this amendatory Act of the 95th General Assembly apply only to
15matters in which a petition for tax deed is filed on or after
16June 1, 2008 (the effective date of Public Act 95-477) this
17amendatory Act of the 95th General Assembly.
18(Source: P.A. 102-519, eff. 8-20-21; 102-528, eff. 1-1-22;
19revised 10-12-21.)
 
20    Section 99. Effective date. This Act takes effect January
211, 2022.