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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3394 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
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| 35 ILCS 200/21-310 | | 35 ILCS 516/255 | |
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Amends the Property Tax Code. Provides that the owner of the certificate of purchase shall promptly notify the county collector in writing that a petition for a sale in error has been filed. Provides that the court may deny the petition for a sale in error if the notice is not filed. Amends the Property Tax Code and the Mobile Home Local Services Tax Enforcement Act. Provides that, when the owner of the certificate of purchase is the county as trustee for taxing districts, then, upon request of or consent by the county as trustee, the county collector may declare an administrative sale in error at any time and for any reason. Provides that the declaration shall state the reason why the sale should not have occurred. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by changing |
| 5 | | Section 21-310 as follows:
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| 6 | | (35 ILCS 200/21-310)
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| 7 | | Sec. 21-310. Sales in error.
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| 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
the |
| 11 | | satisfaction of the court which ordered the property sold that |
| 12 | | any of the
following subsections are applicable, the court |
| 13 | | shall declare the sale to be a
sale in error:
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| 14 | | (1) the property was not subject to taxation, or all |
| 15 | | or any part of the
lien of taxes sold has become null and |
| 16 | | void pursuant to Section 21-95
or unenforceable pursuant |
| 17 | | to subsection (c) of Section 18-250 or subsection
(b) of |
| 18 | | Section 22-40,
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| 19 | | (2) the taxes or special assessments had been paid |
| 20 | | prior to the sale of
the property,
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| 21 | | (3) there is a double assessment,
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| 22 | | (4) the description is void for uncertainty,
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| 23 | | (5) the assessor, chief county assessment officer, |
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| 1 | | board of review,
board of appeals, or other county |
| 2 | | official has made an error (other than an
error of |
| 3 | | judgment as to
the value of any property),
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| 4 | | (5.5) the owner of the homestead property had tendered |
| 5 | | timely and full
payment to the county collector that the |
| 6 | | owner reasonably believed was due and
owing on the |
| 7 | | homestead property, and the county collector did not apply |
| 8 | | the
payment to the homestead property; provided that this |
| 9 | | provision applies only to
homeowners, not their agents or |
| 10 | | third-party payors,
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| 11 | | (6) prior to the tax sale a voluntary or involuntary |
| 12 | | petition has been
filed by or against the legal or |
| 13 | | beneficial owner of the property requesting
relief under |
| 14 | | the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
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| 15 | | (7) the property is owned by the United States, the |
| 16 | | State of Illinois,
a municipality, or a
taxing district, |
| 17 | | or |
| 18 | | (8) the owner of the property is a reservist or |
| 19 | | guardsperson who is granted an extension of his or her due |
| 20 | | date under Sections 21-15, 21-20, and 21-25 of this Act.
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| 21 | | (b) When, upon application of the owner of the certificate |
| 22 | | of purchase
only, it appears to the satisfaction of the court |
| 23 | | which ordered the property
sold that any of the following |
| 24 | | subsections are applicable, the court shall
declare the sale |
| 25 | | to be a sale in error:
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| 26 | | (1) A voluntary or involuntary petition under the |
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| 1 | | provisions of 11
U.S.C. Chapter 7, 11, 12, or 13 has been |
| 2 | | filed
subsequent to the tax sale and prior to the issuance |
| 3 | | of the tax deed.
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| 4 | | (2) The improvements upon the property sold have been |
| 5 | | substantially
destroyed or rendered uninhabitable or |
| 6 | | otherwise unfit for occupancy subsequent
to the tax sale |
| 7 | | and prior to the issuance of the tax deed; however, if the |
| 8 | | court declares a sale in error under this paragraph (2), |
| 9 | | the court may order the holder of the certificate of |
| 10 | | purchase to assign the certificate to the county collector |
| 11 | | if requested by the county collector. The county collector |
| 12 | | may, upon request of the county, as trustee, or upon |
| 13 | | request of a taxing district having an interest in the |
| 14 | | taxes sold, further assign any certificate of purchase |
| 15 | | received pursuant to this paragraph (2) to the county |
| 16 | | acting as trustee for taxing districts pursuant to Section |
| 17 | | 21-90 of this Code or to the taxing district having an |
| 18 | | interest in the taxes sold.
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| 19 | | (3) There is an interest held by the United States in |
| 20 | | the property sold
which could not be extinguished by the |
| 21 | | tax deed.
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| 22 | | (4) The real property contains a hazardous
substance, |
| 23 | | hazardous waste, or underground storage tank that would
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| 24 | | require cleanup or other removal under any federal,
State, |
| 25 | | or local law, ordinance, or regulation, only if the tax |
| 26 | | purchaser
purchased the property without actual knowledge |
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| 1 | | of the hazardous substance,
hazardous waste, or |
| 2 | | underground storage tank. This paragraph (4) applies only |
| 3 | | if the owner of the
certificate of purchase has made |
| 4 | | application for a sale in error at any time
before the |
| 5 | | issuance of a tax deed. If the court declares a sale in |
| 6 | | error under this paragraph (4), the court may order the |
| 7 | | holder of the certificate of purchase to assign the |
| 8 | | certificate to the county collector if requested by the |
| 9 | | county collector. The county collector may, upon request |
| 10 | | of the county, as trustee, or upon request of a taxing |
| 11 | | district having an interest in the taxes sold, further |
| 12 | | assign any certificate of purchase received pursuant to |
| 13 | | this paragraph (4) to the county acting as trustee for |
| 14 | | taxing districts pursuant to Section 21-90 of this Code or |
| 15 | | to the taxing district having an interest in the taxes |
| 16 | | sold.
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| 17 | | (b-5) Upon filing a petition for a sale in error under |
| 18 | | subsection (b), the owner of the certificate of purchase shall |
| 19 | | promptly notify the county collector in writing that such a |
| 20 | | petition has been filed. The court may deny the petition for a |
| 21 | | sale in error if the owner of the certificate of purchase fails |
| 22 | | to file the notice under this subsection. |
| 23 | | (b-10) Whenever a court declares a sale in error under |
| 24 | | this subsection (b), the court shall promptly notify the |
| 25 | | county collector in writing. Every such declaration pursuant |
| 26 | | to any provision of this subsection (b) shall be made within |
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| 1 | | the proceeding in which the tax sale was authorized. |
| 2 | | (c) When the county collector discovers, prior to the |
| 3 | | expiration of the period of redemption, that a tax sale
should |
| 4 | | not have occurred for one or more of the reasons set forth in
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| 5 | | subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, |
| 6 | | the county
collector shall notify the last known owner of the |
| 7 | | certificate of purchase by
certified and regular mail, or |
| 8 | | other means reasonably calculated to provide
actual notice, |
| 9 | | that the county collector intends to declare an administrative
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| 10 | | sale in error and of the reasons therefor, including |
| 11 | | documentation sufficient
to establish the reason why the sale |
| 12 | | should not have occurred. The owner of the
certificate of |
| 13 | | purchase may object in writing within 28 days after the date of
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| 14 | | the mailing by the county collector. If an objection is filed, |
| 15 | | the county
collector shall not administratively declare a sale |
| 16 | | in error, but may apply to
the circuit court for a sale in |
| 17 | | error as provided in subsection (a) of this
Section. Thirty |
| 18 | | days following the receipt of notice by the last known owner of
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| 19 | | the certificate of purchase, or within a reasonable time |
| 20 | | thereafter, the county
collector shall make a written |
| 21 | | declaration, based upon clear and convincing
evidence, that |
| 22 | | the taxes were sold in error and shall deliver a copy thereof |
| 23 | | to
the county clerk within 30 days after the date the |
| 24 | | declaration is made for
entry in the tax judgment, sale, |
| 25 | | redemption, and forfeiture record pursuant to
subsection (d) |
| 26 | | of this Section. The county collector shall promptly notify |
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| 1 | | the
last known owner of the certificate of purchase of the |
| 2 | | declaration by regular
mail and shall promptly pay the amount |
| 3 | | of the tax sale, together with interest
and costs as provided |
| 4 | | in Section 21-315, upon surrender of the original
certificate |
| 5 | | of purchase. If the owner of the certificate of purchase is the |
| 6 | | county as trustee for taxing districts, then, upon request of |
| 7 | | or consent by the county as trustee, the county collector may |
| 8 | | declare an administrative sale in error at any time and for any |
| 9 | | reason. The declaration shall state the reason why the sale |
| 10 | | should not have occurred.
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| 11 | | (d) If a sale is declared to be a sale in error, the county
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| 12 | | clerk shall make entry in the tax judgment, sale, redemption |
| 13 | | and
forfeiture record, that the property was erroneously sold, |
| 14 | | and the county
collector shall, on demand of the owner of the |
| 15 | | certificate of purchase, refund
the amount paid, except for |
| 16 | | the nonrefundable $80 fee paid, pursuant to Section 21-295, |
| 17 | | for each item purchased at the tax sale, pay any interest and |
| 18 | | costs as may be ordered under Sections
21-315 through 21-335, |
| 19 | | and cancel the certificate so far as it relates to the
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| 20 | | property. The county collector shall deduct from the accounts |
| 21 | | of the
appropriate taxing bodies their pro rata amounts paid. |
| 22 | | Alternatively, for sales in error declared under subsection |
| 23 | | (b)(2) or (b)(4), the county collector may request the circuit |
| 24 | | court to direct the county clerk to record any assignment of |
| 25 | | the tax certificate to or from the county collector without |
| 26 | | charging a fee for the assignment. The owner of the |
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| 1 | | certificate of purchase shall receive all statutory refunds |
| 2 | | and payments. The county collector shall deduct costs and |
| 3 | | payments in the same manner as if a sale in error had occurred.
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| 4 | | (Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20; |
| 5 | | 101-659, eff. 3-23-21.)
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| 6 | | Section 10. The Mobile Home Local Services Tax Enforcement |
| 7 | | Act is amended by changing Section 255 as follows:
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| 8 | | (35 ILCS 516/255)
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| 9 | | Sec. 255. Sales in error.
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| 10 | | (a) When, upon application of the county collector, the |
| 11 | | owner of the
certificate of purchase, or a
municipality that |
| 12 | | owns or has owned the mobile home ordered sold, it appears to
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| 13 | | the satisfaction of the court that ordered the mobile home |
| 14 | | sold that any of the
following subsections are applicable, the |
| 15 | | court shall declare the sale to be a
sale in error:
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| 16 | | (1) the mobile home was not subject to taxation,
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| 17 | | (1.5) the mobile home has been moved to a different |
| 18 | | location,
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| 19 | | (2) the taxes had been paid prior to the sale of
the |
| 20 | | mobile home,
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| 21 | | (3) there is a double computation of the tax,
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| 22 | | (4) the description is void for uncertainty,
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| 23 | | (5) the assessor, chief county assessment officer, |
| 24 | | board of review,
board of appeals, or other county |
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| 1 | | official has made an error (other than an
error of |
| 2 | | judgment as to
the value of any mobile home),
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| 3 | | (5.5) the owner of the mobile home had tendered timely |
| 4 | | and full
payment to the county collector that the owner |
| 5 | | reasonably believed was due and
owing on the mobile home, |
| 6 | | and the county collector did not apply the
payment to the |
| 7 | | mobile home; provided that this provision applies only to
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| 8 | | mobile home owners, not their agents or third-party |
| 9 | | payors,
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| 10 | | (6) prior to the tax sale a voluntary or involuntary |
| 11 | | petition has been
filed by or against the legal or |
| 12 | | beneficial owner of the mobile home requesting
relief |
| 13 | | under the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13, |
| 14 | | or
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| 15 | | (7) the mobile home is owned by the United States, the |
| 16 | | State of Illinois, a municipality, or a taxing district. |
| 17 | | (b) When, upon application of the owner of the certificate |
| 18 | | of purchase
only, it appears to the satisfaction of the court |
| 19 | | that ordered the mobile home
sold that any of the following |
| 20 | | subsections are applicable, the court shall
declare the sale |
| 21 | | to be a sale in error:
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| 22 | | (1) A voluntary or involuntary petition under the |
| 23 | | provisions of 11
U.S.C. Chapter 7, 11, 12, or 13 has been |
| 24 | | filed
subsequent to the tax sale and prior to the issuance |
| 25 | | of the tax certificate of title.
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| 26 | | (2) The mobile home sold has been substantially
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| 1 | | destroyed or rendered uninhabitable or otherwise unfit for |
| 2 | | occupancy subsequent
to the tax sale and prior to the |
| 3 | | issuance of the tax certificate of title.
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| 4 | | (c) When the county collector discovers, prior to the |
| 5 | | expiration of the period of redemption, that a tax sale
should |
| 6 | | not have occurred for one or more of the reasons set forth in
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| 7 | | subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, |
| 8 | | the county
collector shall notify the last known owner of the |
| 9 | | certificate of purchase by
certified and regular mail, or |
| 10 | | other means reasonably calculated to provide
actual notice, |
| 11 | | that the county collector intends to declare an administrative
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| 12 | | sale in error and of the reasons therefor, including |
| 13 | | documentation sufficient
to establish the reason why the sale |
| 14 | | should not have occurred. The owner of the
certificate of |
| 15 | | purchase may object in writing within 28 days after the date of
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| 16 | | the mailing by the county collector. If an objection is filed, |
| 17 | | the county
collector shall not administratively declare a sale |
| 18 | | in error, but may apply to
the circuit court for a sale in |
| 19 | | error as provided in subsection (a) of this
Section. Thirty |
| 20 | | days following the receipt of notice by the last known owner of
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| 21 | | the certificate of purchase, or within a reasonable time |
| 22 | | thereafter, the county
collector shall make a written |
| 23 | | declaration, based upon clear and convincing
evidence, that |
| 24 | | the taxes were sold in error and shall deliver a copy thereof |
| 25 | | to
the county clerk within 30 days after the date the |
| 26 | | declaration is made for
entry in the tax judgment, sale, |
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| 1 | | redemption, and forfeiture record pursuant to
subsection (d) |
| 2 | | of this Section. The county collector shall promptly notify |
| 3 | | the
last known owner of the certificate of purchase of the |
| 4 | | declaration by regular
mail and shall promptly pay the amount |
| 5 | | of the tax sale, together with interest
and costs as provided |
| 6 | | in Sections 260 through 280, upon surrender of the original
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| 7 | | certificate of purchase. If the owner of the certificate of |
| 8 | | purchase is the county as trustee for taxing districts, then, |
| 9 | | upon request of or consent by the county as trustee, the county |
| 10 | | collector may declare an administrative sale in error at any |
| 11 | | time and for any reason. The declaration shall state the |
| 12 | | reason why the sale should not have occurred. |
| 13 | | (d) If a sale is declared to be a sale in error, the county
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| 14 | | clerk shall make entry in the tax judgment, sale, redemption |
| 15 | | and
forfeiture record, that the mobile home was erroneously |
| 16 | | sold, and the county
collector shall, on demand of the owner of |
| 17 | | the certificate of purchase, refund
the amount paid, pay any |
| 18 | | interest and costs as may be ordered under Sections
260 |
| 19 | | through 280, and cancel the certificate so far as it relates to |
| 20 | | the
mobile home. The county collector shall deduct from the |
| 21 | | accounts of the
appropriate taxing bodies their pro rata |
| 22 | | amounts paid.
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| 23 | | (Source: P.A. 98-949, eff. 8-15-14.)
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| 24 | | Section 99. Effective date. This Act takes effect upon |
| 25 | | becoming law.
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