Full Text of HB5201 96th General Assembly
HB5201 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB5201
Introduced 2/3/2010, by Rep. Franco Coladipietro SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. In a provision concerning payments from the Indemnity Fund, provides that petitions for indemnity must be filed no later than 10 years after the tax deed was issued. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB5201 |
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LRB096 17051 HLH 32372 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing | 5 |
| Section 21-305 as follows:
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| (35 ILCS 200/21-305)
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| Sec. 21-305. Payments from Indemnity Fund.
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| (a) Any owner of property sold under any provision of this | 9 |
| Code who
sustains loss or damage by
reason of the issuance of a | 10 |
| tax deed under Section 21-445 or 22-40 and who is
barred or is | 11 |
| in any way
precluded from bringing an action for the recovery | 12 |
| of the property shall have
the right to indemnity for the
loss | 13 |
| or damage sustained, limited as follows:
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| (1) An owner who resided on property that contained 4 | 15 |
| or less dwelling
units on the last day
of the period of | 16 |
| redemption and who is equitably entitled to compensation | 17 |
| for
the loss or damage sustained
has the right to | 18 |
| indemnity. An equitable indemnity award shall be limited to
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| the fair cash value of the
property as of the date the tax | 20 |
| deed was issued less any mortgages or liens on
the | 21 |
| property, and the award will
not exceed $99,000. The Court | 22 |
| shall liberally construe this equitable
entitlement | 23 |
| standard to provide
compensation wherever, in the |
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HB5201 |
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LRB096 17051 HLH 32372 b |
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| discretion of the Court, the equities warrant the
action.
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| An owner of a property that contained 4 or less | 3 |
| dwelling units who requests
an award in excess of
$99,000 | 4 |
| must prove that the loss of his or her property was not | 5 |
| attributable to
his or her own fault or
negligence before | 6 |
| an award in excess of $99,000 will be granted.
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| (2) An owner who sustains the loss or damage of any | 8 |
| property occasioned
by reason of the
issuance of a tax | 9 |
| deed, without fault or negligence of his or her own, has | 10 |
| the
right to indemnity limited to the
fair cash value of | 11 |
| the property less any mortgages or liens on the property.
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| In determining the existence of
fault or negligence, the | 13 |
| court shall consider whether the owner exercised
ordinary | 14 |
| reasonable diligence under
all of the relevant | 15 |
| circumstances.
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| (3) In determining the fair cash value of property less | 17 |
| any mortgages or
liens on the
property, the fair cash value | 18 |
| shall be reduced by the principal amount of all
taxes paid | 19 |
| by the tax purchaser
or his or her assignee before the | 20 |
| issuance of the tax deed.
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| (4) If an award made under paragraph (1) or (2) is | 22 |
| subject to a reduction
by the amount of
an outstanding | 23 |
| mortgage or lien on the property, other than the principal
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| amount of all taxes paid by the tax
purchaser or his or her | 25 |
| assignee before the issuance of the tax deed and the
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| petitioner would be personally
liable to the mortgagee or |
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HB5201 |
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LRB096 17051 HLH 32372 b |
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| lienholder for all or part of that reduction amount,
the | 2 |
| court shall order an
additional indemnity award to be paid | 3 |
| directly to the mortgagee or lienholder
sufficient to | 4 |
| discharge the
petitioner's personal liability. The court, | 5 |
| in its discretion, may order the
joinder of the mortgagee | 6 |
| or
lienholder as an additional party to the indemnity | 7 |
| action.
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| (b) Indemnity fund; subrogation.
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| (1) Any person claiming indemnity hereunder
shall | 10 |
| petition the
Court which ordered the tax deed to issue, | 11 |
| shall name the County Treasurer, as
Trustee of the | 12 |
| indemnity fund, as defendant to the petition, and shall ask | 13 |
| that
judgment be entered against the County Treasurer, as | 14 |
| Trustee, in the amount of
the indemnity sought. The | 15 |
| provisions of the Civil Practice Law shall apply to
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| proceedings under the petition, except that neither the | 17 |
| petitioner nor County
Treasurer shall be entitled to trial | 18 |
| by jury on the issues presented in the
petition. The Court | 19 |
| shall liberally construe this Section to provide
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| compensation wherever in the discretion of the Court the | 21 |
| equities warrant such
action.
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| (2) The County Treasurer, as Trustee of the indemnity | 23 |
| fund, shall be
subrogated to all parties in whose favor | 24 |
| judgment may be rendered against him
or her, and by third | 25 |
| party complaint may bring in as a defendant any
person,
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| other than the tax deed grantee and its successors in |
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HB5201 |
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LRB096 17051 HLH 32372 b |
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| title, not a party to the
action who is or may be liable to | 2 |
| him or her, as subrogee, for all
or part of the | 3 |
| petitioner's claim against him or her.
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| (c) Any contract involving the proceeds of a judgment for | 5 |
| indemnity under
this Section, between the
tax deed grantee or | 6 |
| its successors in title and the indemnity petitioner or his
or | 7 |
| her successors, shall be in
writing. In any action brought | 8 |
| under Section 21-305, the Collector shall be
entitled to | 9 |
| discovery regarding,
but not limited to, the following:
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| (1) the identity of all persons beneficially | 11 |
| interested in the contract,
directly or indirectly,
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| including at least the following information: the names and | 13 |
| addresses of any
natural
persons; the place of | 14 |
| incorporation of any corporation and the names and
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| addresses of its
shareholders unless it is publicly held; | 16 |
| the names and addresses of all general
and limited
partners | 17 |
| of any partnership; the names and addresses of all persons | 18 |
| having an
ownership
interest in any entity doing business | 19 |
| under an assumed name, and the county in
which the
assumed | 20 |
| business name is registered; and the nature and extent of | 21 |
| the interest
in the
contract of each person identified;
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| (2) the time period during which the contract was | 23 |
| negotiated and agreed
upon, from the date
of the first | 24 |
| direct or indirect contact between any of the contracting | 25 |
| parties
to the date of its
execution;
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| (3) the name and address of each natural person who |
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| took part in
negotiating the contract,
and the identity and | 2 |
| relationship of the party that the person represented in
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| the
negotiations; and
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| (4) the existence of an agreement for payment of | 5 |
| attorney's fees by or on
behalf of each
party.
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| Any information disclosed during discovery may be subject | 7 |
| to protective order
as deemed appropriate by
the court. The | 8 |
| terms of the contract shall not be used as evidence of value.
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| (d) A petition of indemnity under this Section must be | 10 |
| filed within 10 years after the date the tax deed was issued. | 11 |
| (Source: P.A. 91-564, eff. 8-14-99.)
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| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.
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