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Public Act 92-0729
SB1666 Enrolled LRB9210095SMdvA
AN ACT in relation to taxes.
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
Sections 15-10, 21-310, 21-315, 21-320, 21-325, 21-330, and
21-335 and by adding Section 21-251 as follows:
(35 ILCS 200/15-10)
Sec. 15-10. Exempt property; procedures for
certification. All property granted an exemption by the
Department pursuant to the requirements of Section 15-5 and
described in the Sections following Section 15-30 and
preceding Section 16-5, to the extent therein limited, is
exempt from taxation. In order to maintain that exempt
status, the titleholder or the owner of the beneficial
interest of any property that is exempt must file with the
chief county assessment officer, on or before January 31 of
each year (May 31 in the case of property exempted by Section
15-170), an affidavit stating whether there has been any
change in the ownership or use of the property or the status
of the owner-resident, or that a disabled veteran who
qualifies under Section 15-165 owned and used the property as
of January 1 of that year. The nature of any change shall be
stated in the affidavit. Failure to file an affidavit
shall, in the discretion of the assessment officer,
constitute cause to terminate the exemption of that property,
notwithstanding any other provision of this Code. Owners of 5
or more such exempt parcels within a county may file a single
annual affidavit in lieu of an affidavit for each parcel.
The assessment officer, upon request, shall furnish an
affidavit form to the owners, in which the owner may state
whether there has been any change in the ownership or use of
the property or status of the owner or resident as of January
1 of that year. The owner of 5 or more exempt parcels shall
list all the properties giving the same information for each
parcel as required of owners who file individual affidavits.
However, titleholders or owners of the beneficial
interest in any property exempted under any of the following
provisions are not required to submit an annual filing under
this Section:
(1) Section 15-45 (burial grounds) in counties of
less than 3,000,000 inhabitants and owned by a
not-for-profit organization.
(2) Section 15-40.
(3) Section 15-50 (United States property).
(4) As is otherwise provided in Sections 15-170 and
15-175 (senior and general homestead exemptions).
If there is a change in use or ownership, however, notice
must be filed pursuant to Section 15-20.
An application for homestead exemptions shall be filed as
provided in Section 15-170 (senior citizens homestead
exemption), Section 15-172 (senior citizens assessment freeze
homestead exemption), and Section 15-175 (general homestead
exemption), respectively.
(Source: P.A. 92-333, eff. 8-10-01.)
(35 ILCS 200/21-251 new)
Sec. 21-251. Registry of owners of certificates of
purchase.
(a) The county clerk of each county shall create and
maintain a registry system that permanently records the
names, addresses, and telephone numbers of owners or
assignees of certificates of purchase issued pursuant to any
tax sale conducted under this Code. The registry may consist
of a single record or a combination of records maintained in
paper or electronic form and may include copies of records
kept by the county treasurer for other purposes, all to be
used as the county clerk deems appropriate to carry out the
purposes of this Section. The information in the registry
shall be made available to the public.
(b) The county clerk of each county is authorized to
promulgate reasonable rules, procedures, and forms for
purposes of creating and maintaining the registry and for
access to the registry information by members of the public.
In counties with 3,000,000 or more inhabitants, any owner of
a certificate of purchase pursuant to assignment may elect
whether to register that assignment as provided in this
Section, but all owners of certificates of purchase shall be
subject to the provisions of subsection (d) of this Section.
In counties with less than 3,000,000 inhabitants, the county
clerk shall provide by rule whether registration of
assignments of certificates of purchase shall be elective or
mandatory.
(c) The owner of a certificate of purchase pursuant to
assignment, in order to register that assignment, shall
submit to the county clerk the owner's name, address, and
telephone number in accordance with any rules, procedures,
and forms promulgated by the clerk. Any registered owner of a
certificate of purchase may update the registration at any
time without charge by submitting to the county clerk any
lawful change of name, address, or telephone number.
(d) If notice is required to be given to the owner of
the certificate of purchase in any proceeding, whether
judicial or administrative, affecting a tax sale conducted
under any provision of this Code, the notice may be directed
to the most recent owner of the certificate of purchase
appearing in the county clerk's registry under this Section.
Any notice that has been directed as provided in this Section
shall be conclusively presumed to be properly directed to the
owner of the certificate of purchase for all purposes related
to the proceeding in which the notice is given. No objection
or assertion by any assignee of a certificate of purchase in
any proceeding shall be heard on grounds that a notice to the
tax purchaser was misdirected, unless that assignee's current
and lawful name, address, and telephone number were submitted
to the county clerk's registry at the time of the notice in
question.
(e) The county clerk may assess an automation fee of no
more than $10 to be paid by the owner of the certificate of
purchase for each assignment of the certificate that is
registered under this Section. The fee shall be collected in
the same manner as other fees and costs and shall be held by
the county clerk in a fund for purposes of automating his or
her office. The fee provided for under this Section shall not
be chargeable to the cost of redemption under Section 21-355
nor shall it be posted under Section 21-360 of this Code.
(35 ILCS 200/21-310)
Sec. 21-310. Sales in error.
(a) When, upon application of the county collector, the
owner of the certificate of purchase, or a municipality which
owns or has owned the property ordered sold, it appears to
the satisfaction of the court which ordered the property sold
that any of the following subsections are applicable, the
court shall declare the sale to be a sale in error:
(1) the property was not subject to taxation, or
all or any part of the lien of taxes sold has become null
and void pursuant to Section 21-95 or unenforceable
pursuant to subsection (c) of Section 18-250 or
subsection (b) of Section 22-40,
(2) the taxes or special assessments had been paid
prior to the sale of the property,
(3) there is a double assessment,
(4) the description is void for uncertainty,
(5) the assessor, chief county assessment officer,
board of review, board of appeals, or other county
official has made an error (other than an error of
judgment as to the value of any property),
(5.5) the owner of the homestead property had
tendered timely and full payment to the county collector
that the owner reasonably believed was due and owing on
the homestead property, and the county collector did not
apply the payment to the homestead property; provided
that this provision applies only to homeowners, not their
agents or third-party payors,
(6) prior to the tax sale a voluntary or
involuntary petition has been filed by or against the
legal or beneficial owner of the property requesting
relief under the provisions of 11 U.S.C. Chapter 7, 11,
12, or 13, or
(7) the property is owned by the United States, the
State of Illinois, a municipality, or a taxing district.
(b) When, upon application of the owner of the
certificate of purchase only, it appears to the satisfaction
of the court which ordered the property sold that any of the
following subsections are applicable, the court shall declare
the sale to be a sale in error:
(1) A voluntary or involuntary petition under the
provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
filed subsequent to the tax sale and prior to the
issuance of the tax deed.
(2) The improvements upon the property sold have
been substantially destroyed or rendered uninhabitable or
otherwise unfit for occupancy subsequent to the tax sale
and prior to the issuance of the tax deed.
(3) There is an interest held by the United States
in the property sold which could not be extinguished by
the tax deed.
(4) The real property contains a hazardous
substance, hazardous waste, or underground storage tank
that would require cleanup or other removal under any
federal, State, or local law, ordinance, or regulation,
only if the tax purchaser purchased the property without
actual knowledge of the hazardous substance, hazardous
waste, or underground storage tank. This paragraph (4)
applies only to tax purchases occurring after January 1,
1990 and if the owner of the certificate of purchase has
made application for a sale in error at any time before
the issuance of a tax deed.
(c) When the county collector discovers, within one year
after the date of sale if taxes were sold at an annual tax
sale or within 180 days after the date of sale if taxes were
sold at a scavenger tax sale, that a tax sale should not have
occurred for one or more of the reasons set forth in
subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this
Section, the county collector shall notify the last known
owner of the certificate of purchase by certified and regular
mail, or other means reasonably calculated to provide actual
notice, that the county collector intends to declare an
administrative sale in error and of the reasons therefor,
including documentation sufficient to establish the reason
why the sale should not have occurred. The owner of the
certificate of purchase may object in writing within 28 days
after the date of the mailing by the county collector. If an
objection is filed, the county collector shall not
administratively declare a sale in error, but may apply to
the circuit court for a sale in error as provided in
subsection (a) of this Section. Thirty days following the
receipt of notice by the last known owner of the certificate
of purchase, or within a reasonable time thereafter, the
county collector shall make a written declaration, based upon
clear and convincing evidence, that the taxes were sold in
error and shall deliver a copy thereof to the county clerk
within 30 days after the date the declaration is made for
entry in the tax judgment, sale, redemption, and forfeiture
record pursuant to subsection (d) of this Section. The county
collector shall promptly notify the last known owner of the
certificate of purchase of the declaration by regular mail
and shall promptly pay the amount of the tax sale, together
with interest and costs as provided in Section 21-315, upon
surrender of the original certificate of purchase.
(d) If a sale is declared to be a sale in error, the
county clerk shall make entry in the tax judgment, sale,
redemption and forfeiture record, that the property was
erroneously sold, and the county collector shall, on demand
of the owner of the certificate of purchase, refund the
amount paid, pay any interest and costs as may be ordered
under Sections 21-315 through 21-335, and cancel the
certificate so far as it relates to the property. The county
collector shall deduct from the accounts of the appropriate
taxing bodies their pro rata amounts paid.
(Source: P.A. 91-177, eff. 1-1-00; 91-357, eff. 7-29-99;
91-924, eff. 1-1-01; 92-224, eff. 1-1-02.)
(35 ILCS 200/21-315)
Sec. 21-315. Refund of costs; interest on refund.
(a) If The court which orders a sale in error under
Section 21-310, 22-35, or 22-50 is declared, the amount
refunded shall also include award a refund of all costs paid
by the owner of the certificate of purchase or his or her
assignor which were posted to the tax judgment, sale,
redemption and forfeiture record.
(b) In those cases which arise solely under grounds set
forth in Section 21-310, the amount refunded court shall also
include award interest on the refund of the amount paid for
the certificate of purchase, except as otherwise provided in
this Section. Interest shall be awarded and paid to the tax
purchaser at the rate of 1% per month from the date of sale
to the date of payment, or in an amount equivalent to the
penalty interest which would be recovered on a redemption at
the time of payment pursuant to the order for sale in error,
whichever is less. Interest shall not be paid when the sale
in error is made pursuant to paragraph (2) or (4) of
subsection (b) of Section 21-310, Section 22-35, Section
22-50, any ground not enumerated in Section 21-310, or in any
other case where the court determines that the tax purchaser
had actual knowledge prior to the sale of the grounds on
which the sale is declared to be erroneous.
(c) When the county collector files a petition for sale
in error under Section 21-310 and mails a notice thereof by
certified or registered mail to the last known owner of the
certificate of purchase tax purchaser, any interest otherwise
payable under this Section shall cease to accrue as of the
date the petition is filed, unless the tax purchaser agrees
to an order for sale in error upon the presentation of the
petition to the court. Notices under this subsection may be
mailed to the last known original owner of the certificate of
purchase, or to the latest assignee, if known. When the
owner of the certificate of purchase contests the collector's
petition solely to determine whether the grounds for sale in
error are such as to support a claim for interest, the court
may direct that the principal amount of the refund be paid to
the owner of the certificate of purchase forthwith. If the
court thereafter determines that a claim for interest lies
under this Section, it shall award such interest from the
date of sale to the date the principal amount was paid.
(Source: P.A. 92-224, eff. 1-1-02.)
(35 ILCS 200/21-320)
Sec. 21-320. Refund of other taxes paid by holder of
certificate of purchase. If a sale in error under Section
21-310, 22-35, or 22-50 is declared, the amount refunded
shall also include The court which orders a sale in error
shall order the refund of all other taxes paid or redeemed by
the owner of the certificate of purchase or his or her
assignor subsequent to the tax sale, together with interest
on those other taxes under the same terms as interest is
otherwise payable under Section 21-315. The interest under
this subsection shall be calculated at the rate of 1% per
month from the date the other taxes were paid and not from
the date of sale. The collector shall take credit in
settlement of his or her accounts for the refund of the other
taxes as in other cases of sale in error under Section
21-310.
(Source: P.A. 92-224, eff. 1-1-02.)
(35 ILCS 200/21-325)
Sec. 21-325. Orders for Payment of interest - Counties
of 3,000,000 or more. In counties with 3,000,000 or more
inhabitants, all payments orders for payment of interest or
costs under Sections 21-315 and 21-320 and subsection (c) of
Section 21-310 shall be paid as provided in Sections 21-330,
21-335 and 21-340. In all other counties, the county
treasurer may determine in his or her discretion whether
payment of interest and costs shall be made as provided in
Sections 21-330, 21-335 and 21-340. In the other counties,
where the treasurer determines not to make payment as
provided in those subsections, the treasurer shall pay any
interest or costs awarded under this Section pro rata from
those accounts where the principal refund of the tax sale
purchase price under Section 21-310 is taken.
(Source: P.A. 86-286; 86-415; 87-669; 88-455.)
(35 ILCS 200/21-330)
Sec. 21-330. Fund for payment of interest. In counties
of under 3,000,000 inhabitants, the county board may impose a
fee of up to $60, which shall be paid to the county
collector, upon each person purchasing any property at a sale
held under this Code, prior to the issuance of any
certificate of purchase. Each person purchasing any property
at a sale held under this Code in a county with 3,000,000 or
more inhabitants shall pay to the county collector, prior to
the issuance of any certificate of purchase, a fee of $100
for each item purchased. That amount shall be included in
the price paid for the certificate of purchase and the amount
required to redeem under Section 21-355.
All sums of money received under this Section shall be
paid by the collector to the county treasurer of the county
in which the property is situated for deposit into a special
fund. It shall be the duty of the county treasurer, as
trustee of the fund, to invest the principal and income of
the fund from time to time, if not immediately required for
payments under this Section, in investments as are authorized
by Sections 3-10009 and 3-11002 of the Counties Code. The
fund shall be held to pay satisfy orders for payment of
interest and costs by obtained against the county treasurer
as trustee of the fund. No payment shall be made from the
fund except by order of the court declaring a sale in error
under Section 21-310, 22-35, or 22-50 or by declaration of
the county collector under subsection (c) of Section 21-310.
Any moneys accumulated in the fund by the county treasurer in
excess of $500,000 shall be paid each year prior to the
commencement of the annual tax sale, first to satisfy any
existing unpaid judgments entered pursuant to Section 21-295,
and any funds remaining thereafter shall be paid to the
general fund of the county.
(Source: P.A. 92-224, eff. 1-1-02.)
(35 ILCS 200/21-335)
Sec. 21-335. Claims for interest and costs. Any person
claiming interest or costs under Sections 21-315 through
21-330 shall include the claim in his or her petition for
sale in error under Section 21-310, 22-35, or 22-50. Any
claim for interest or costs which is not included in the
petition is waived., except Interest or costs may be
awarded, however, to the extent permitted by this Section
upon a sale in error petition filed by the county collector
or municipality or upon a declaration by the county collector
pursuant to subsection (c) of Section 21-310, without
requiring a separate filing by the claimant. Any refund of
order for interest or costs upon the petition for sale in
error or upon a declaration by the county collector pursuant
to subsection (c) of Section 21-310 shall be paid by deemed
to be entered against the county treasurer as trustee of the
fund created by this Section. The fund shall be the sole
source for payment and satisfaction of orders for interest
or costs, except as otherwise provided in this subsection.
If the court determines that the fund has been depleted and
will not be restored in time to pay an award with reasonable
promptness, the court may authorize the collector to pay the
interest portion of the award pro rata from those accounts
where the principal refund of the tax sale purchase price
under Section 21-310 is taken.
(Source: P.A. 92-224, eff. 1-1-02.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 15, 2002.
Approved July 25, 2002.
Effective July 25, 2002.
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