State of Illinois
92nd General Assembly
Legislation

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92_HB3753

 
                                              LRB9210096SMdvA

 1        AN ACT in relation to taxes.

 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 21-310 as follows:

 6        (35 ILCS 200/21-310)
 7        Sec. 21-310. Sales in error.
 8        (a)  When, upon application of the county collector,  the
 9    owner of the certificate of purchase, or a municipality which
10    owns  or  has  owned the property ordered sold, it appears to
11    the satisfaction of the court which ordered the property sold
12    that any of the following  subsections  are  applicable,  the
13    court shall declare the sale to be a sale in error:
14             (1)  the  property  was  not subject to taxation, or
15        all or any part of the lien of taxes sold has become null
16        and void pursuant to Section 21-95,
17             (2)  the taxes or special assessments had been  paid
18        prior to the sale of the property,
19             (3)  there is a double assessment,
20             (4)  the description is void for uncertainty,
21             (5)  the  assessor, chief county assessment officer,
22        board of  review,  board  of  appeals,  or  other  county
23        official  has  made  an  error  (other  than  an error of
24        judgment as to the value of any property),
25             (5.5)  the  owner  of  the  homestead  property  had
26        tendered timely and full payment to the county  collector
27        that  the  owner reasonably believed was due and owing on
28        the homestead property, and the county collector did  not
29        apply  the  payment  to  the homestead property; provided
30        that this provision applies only to homeowners, not their
31        agents or third-party payors,
 
                            -2-               LRB9210096SMdvA
 1             (6)  prior  to  the  tax   sale   a   voluntary   or
 2        involuntary  petition  has  been  filed by or against the
 3        legal or beneficial  owner  of  the  property  requesting
 4        relief  under  the provisions of 11 U.S.C. Chapter 7, 11,
 5        12, or 13, or
 6             (7)  the property is owned by the State of Illinois,
 7        a municipality, or a taxing district.
 8        (b)  When,  upon  application  of  the   owner   of   the
 9    certificate  of purchase only, it appears to the satisfaction
10    of the court which ordered the property sold that any of  the
11    following subsections are applicable, the court shall declare
12    the sale to be a sale in error:
13             (1)  A  voluntary  or involuntary petition under the
14        provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
15        filed subsequent  to  the  tax  sale  and  prior  to  the
16        issuance of the tax deed.
17             (2)  The  improvements  upon  the property sold have
18        been substantially destroyed or rendered uninhabitable or
19        otherwise unfit for occupancy subsequent to the tax  sale
20        and prior to the issuance of the tax deed.
21             (3)  There  is an interest held by the United States
22        in the property sold which could not be  extinguished  by
23        the tax deed.
24             (4)  The   real   property   contains   a  hazardous
25        substance, hazardous waste, or underground  storage  tank
26        that  would  require  cleanup  or other removal under any
27        federal, State, or local law, ordinance,  or  regulation,
28        only  if the tax purchaser purchased the property without
29        actual knowledge of the  hazardous  substance,  hazardous
30        waste,  or  underground storage tank.  This paragraph (4)
31        applies only to tax purchases occurring after January  1,
32        1990  and if the owner of the certificate of purchase has
33        made application for a sale in error at any  time  before
34        the issuance of a tax deed.
 
                            -3-               LRB9210096SMdvA
 1        (c)  When  the  county collector discovers through his or
 2    her own investigation, within one year after the date of sale
 3    if taxes were sold at an annual tax sale and within 180  days
 4    after  the date of sale if taxes were sold at a scavenger tax
 5    sale, that a tax sale should not have  occurred  for  one  or
 6    more  of  the  reasons  set forth in this subsection (c), the
 7    county collector shall notify, in writing, by  regular  mail,
 8    the  tax  purchaser  or subsequent holder of a certificate of
 9    purchase registered with the county  clerk  that  he  or  she
10    intends  to  declare an administrative sale in error. The tax
11    purchaser or subsequent holder of a certificate  of  purchase
12    may  file  written  objections  with supporting documentation
13    within 21 days after the date of the mailing  by  the  county
14    collector.  If  an  objection  is filed, the county collector
15    shall not administratively declare a sale in error, but shall
16    apply to the circuit court for a sale in error as provided in
17    subsection (a). If a sale in error is granted by the  circuit
18    court,  the  interest  due on the funds to be refunded to the
19    tax purchaser  or  subsequent  holder  of  a  certificate  of
20    purchase  shall  accrue  up  to  the  date  of  the filing of
21    objections by the tax purchaser or  subsequent  holder  of  a
22    certificate of purchase with the county collector. The county
23    collector  must,  in  order  to declare a sale in error, find
24    that:
25             (1)  the  property  was  the  subject   of   federal
26        forfeiture at the time of the sale;
27             (2)  the  property  was  not subject to taxation, or
28        all or any part of the lien of taxes sold has become null
29        and void pursuant to Section 21-95;
30             (3)  the taxes or special assessments had been  paid
31        prior to the sale of the property;
32             (4)  prior   to   the   tax   sale  a  voluntary  or
33        involuntary petition was filed by or against the legal or
34        beneficial owner of the property requesting relief  under
 
                            -4-               LRB9210096SMdvA
 1        the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13; or
 2             (5)  the property is owned by the State of Illinois,
 3        a municipality, or a taxing district.
 4        At any time after 30 days following the mailing of notice
 5    to the tax purchaser or subsequent holder of a certificate of
 6    purchase  by the county collector, the county collector shall
 7    make a written  finding,  based  upon  clear  and  convincing
 8    evidence,  that  the  taxes were sold in error and shall post
 9    that finding in the warrant book.
10        (d)  If a sale is declared to be a  sale  in  error,  the
11    county  clerk  shall  make  entry  in the tax judgment, sale,
12    redemption and  forfeiture  record,  that  the  property  was
13    erroneously  sold,  and the county collector shall, on demand
14    of the owner of  the  certificate  of  purchase,  refund  the
15    amount  paid,  pay  any  interest and costs as may be ordered
16    under  Sections  21-315  through  21-335,  and   cancel   the
17    certificate  so far as it relates to the property. The county
18    collector shall deduct from the accounts of  the  appropriate
19    taxing bodies their pro rata amounts paid.
20    (Source:  P.A.  91-177,  eff.  1-1-00;  91-357, eff. 7-29-99;
21    91-924, eff. 1-1-01; 92-224, eff. 1-1-02.)

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

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