Bill Text: IL HB1225 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. In a provision setting forth requirements for the issuance of a tax deed, provides that the requirement that all forfeitures and sales occurring subsequent to the tax sale must be redeemed applies only to forfeitures and sales of subsequent years' taxes. Provides that liens for delinquent taxes must be merged into the tax deed grantee's title even if the liens are included in a subsequent sale. Makes corresponding changes in a Section concerning sales in error. Provides that the amendatory Act is declarative of existing law.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB1225 Detail]

Download: Illinois-2011-HB1225-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB1225 Introduced 2/8/2011, by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED:
35 ILCS 200/21-310
35 ILCS 200/22-40
Amends the Property Tax Code. In a provision setting forth requirements for the issuance of a tax deed, provides that the requirement that all forfeitures and sales occurring subsequent to the tax sale must be redeemed applies only to forfeitures and sales of subsequent years' taxes. Provides that liens for delinquent taxes must be merged into the tax deed grantee's title even if the liens are included in a subsequent sale. Makes corresponding changes in a Section concerning sales in error. Provides that the amendatory Act is declarative of existing law.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
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 21-310 and 22-40 as follows:
(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 has or will become null
and void pursuant to 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,

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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,
(7) the property is owned by the United States, the
State of Illinois, a municipality, or a taxing district, or
(8) the owner of the property is a reservist or
guardsperson who is granted an extension of his or her due
date under Sections 21-15, 21-20, and 21-25 of this Act.
(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

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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
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, prior to the
expiration of the period of redemption, 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

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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

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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. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06;
95-331, eff. 8-21-07.)
(35 ILCS 200/22-40)
Sec. 22-40. Issuance of deed; possession.
(a) If the redemption period expires and the property has
not been redeemed and all taxes and special assessments which
became due and payable subsequent to the sale have been paid
and all forfeitures and sales of only subsequent years' taxes
which occur subsequent to the sale have been redeemed and the
notices required by law have been given and all advancements of
public funds under the police power made by a city, village or
town under Section 22-35 have been paid and the petitioner has
complied with all the provisions of law entitling him or her to
a deed, the court shall so find and shall enter an order
directing the county clerk on the production of the certificate
of purchase and a certified copy of the order, to issue to the
purchaser or his or her assignee a tax deed. The court shall
insist on strict compliance with Section 22-10 through 22-25.
Prior to the entry of an order directing the issuance of a tax

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deed, the petitioner shall furnish the court with a report of
proceedings of the evidence received on the application for tax
deed and the report of proceedings shall be filed and made a
part of the court record.
(b) If taxes for years prior to any the year or years sold
are or become delinquent subsequent to the date of sale, the
court shall find that the lien of those delinquent taxes, even
if included in a subsequent sale, has been or will be merged
into the tax deed grantee's title if the court determines that
the tax deed grantee or any prior holder of the certificate of
purchase, or any person or entity under common ownership or
control with any such grantee or prior holder of the
certificate of purchase, was at no time the holder of any
certificate of purchase for the years sought to be merged. If
delinquent taxes are merged into the tax deed pursuant to this
subsection, the court shall enter an order declaring which
specific taxes have been or will be merged into the tax deed
title and directing the county treasurer and county clerk to
reflect that declaration in the warrant and judgment records;
provided, that no such order shall be effective until a tax
deed has been issued and timely recorded. Nothing contained in
this Section shall relieve any owner liable for delinquent
property taxes under this Code from the payment of the taxes
that have been merged into the title upon issuance of the tax
deed.
(c) The county clerk is entitled to a fee of $10 in

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counties of 3,000,000 or more inhabitants and $5 in counties
with less than 3,000,000 inhabitants for the issuance of the
tax deed. The clerk may not include in a tax deed more than one
property as listed, assessed and sold in one description,
except in cases where several properties are owned by one
person.
Upon application the court shall, enter an order to place
the tax deed grantee or the grantee's successor in interest in
possession of the property and may enter orders and grant
relief as may be necessary or desirable to maintain the grantee
or the grantee's successor in interest in possession.
(d) The court shall retain jurisdiction to enter orders
pursuant to subsections (b) and (c) of this Section. This
amendatory Act of the 92nd General Assembly, and this
amendatory Act of the 95th General Assembly, and this
amendatory Act of the 97th General Assembly shall be construed
as being declarative of existing law and not as a new
enactment.
(Source: P.A. 95-477, eff. 6-1-08.)