Bill Text: IL SB1710 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Amends the Property Tax Code. Provides that all tax sales that are not conducted using automated means shall be videotaped. In a Section concerning penalty bids, provides that the collector may, at his or her discretion, declare the taxes forfeited if multiple simultaneous bids of the same percentage are made and those bids are the lowest. Provides that, if there are multiple bids for 0%, then the collector shall randomly select one of the bidders to be the purchaser of the property. Provides that, during the sale, each bidder's penalty percentage shall be disclosed to the other bidders. Provides that bidders shall have the opportunity to reduce their bids during the sale after previous bids have been disclosed. Provides that a record of the winning bid and the name of the tax purchaser shall be open to public inspection.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB1710 Detail]

Download: Illinois-2011-SB1710-Amended.html

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Sen. William R. Haine

Filed: 3/8/2011

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AMENDMENT TO SENATE BILL 1710
AMENDMENT NO. ______. Amend Senate Bill 1710 by replacing
everything after the enacting clause with the following:
"Section 5. The Property Tax Code is amended by changing
Sections 21-205, 21-215, 21-310, and 21-315 as follows:
(35 ILCS 200/21-205)
Sec. 21-205. Tax sale procedures. The collector, in person
or by deputy, shall attend, on the day and in the place
specified in the notice for the sale of property for taxes, and
shall, between 9:00 a.m. and 4:00 p.m., or later at the
collector's discretion, proceed to offer for sale, separately
and in consecutive order, all property in the list on which the
taxes, special assessments, interest or costs have not been
paid. However, in any county with 3,000,000 or more
inhabitants, the offer for sale shall be made between 8:00 a.m.
and 8:00 p.m. The collector's office shall be kept open during

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all hours in which the sale is in progress. The sale shall be
continued from day to day, until all property in the delinquent
list has been offered for sale. However, any city, village or
incorporated town interested in the collection of any tax or
special assessment, may, in default of bidders, withdraw from
collection the special assessment levied against any property
by the corporate authorities of the city, village or
incorporated town. In case of a withdrawal, there shall be no
sale of that property on account of the delinquent special
assessment thereon.
In every sale of property pursuant to the provisions of
this Code, the collector may employ any automated means that
the collector deems appropriate, provided that bidders are
required to personally attend the sale and, in counties with
less than 3,000,000 inhabitants, the automated means must be
certified by the Department. On and after the effective date of
this amendatory Act of the 97th General Assembly, all tax sales
in counties with less than 3,000,000 inhabitants shall be
videotaped with audio. The changes made by this amendatory Act
of the 94th General Assembly are declarative of existing law.
(Source: P.A. 94-922, eff. 1-1-07.)
(35 ILCS 200/21-215)
Sec. 21-215. Penalty bids. The person at the sale offering
to pay the amount due on each property for the least penalty
percentage shall be the purchaser of that property. No bid

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shall be accepted for a penalty exceeding 18% of the amount of
the tax or special assessment on property. The collector may,
at his or her discretion, declare the taxes forfeited if
multiple simultaneous bids of the same percentage are made and
subsequent lower bids are not made. However, if there are
multiple bids for 0%, then the collector shall randomly select
one of the bidders to be the purchaser of the property. During
the sale, in counties with less than 3,000,000 inhabitants,
each bidder's percentage shall be disclosed to the other
bidders. In counties with less than 3,000,000 inhabitants,
bidders shall have the opportunity to reduce their bids during
the sale after other bids have been disclosed. At the
conclusion of the sale, a record of the winning bid and the
name of the tax purchaser shall be open to public inspection.
(Source: P.A. 86-1431; 86-1480; 88-455.)
(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

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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,
(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

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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
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

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issuance of a tax deed.
(b-5) When, upon application of the owner of the property,
it appears to the satisfaction of the court that ordered the
property sold that any of the following conditions apply, the
court shall declare the sale to be a sale in error:
(1) the sale was not videotaped as required by Section
21-205; or
(2) the sale was not held in the manner required by
Section 21-215.
Before the court may declare the sale to be a sale in error
under this subsection (b-5), the property owner must redeem the
property as provided in Section 21-355. Upon declaring the sale
to be a sale in error, the court shall determine whether the
property owner is required pay a penalty. If the court
determines that the property owner is required to pay a
penalty, then the court shall declare what the property owner
owes as the equitable accrued penalty.
(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
county collector intends to declare an administrative sale in
error and of the reasons therefor, including documentation

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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

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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 200/21-315)
Sec. 21-315. Refund of costs; interest on refund.
(a) If a sale in error under Section 21-310, 22-35, or
22-50 is declared, the amount refunded shall also include 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 shall also include
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, paragraph (1) or (2) of subsection (b-5) of Section

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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, 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
owner of the certificate of purchase. 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. If the owner of the certificate
of purchase files an objection to the county collector's
intention to declare an administrative sale in error, as
provided under subsection (c) of Section 21-310, and,
thereafter, the county collector elects to apply to the circuit

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court for a sale in error under subsection (a) of Section
21-310, then, if the circuit court grants the county
collector's application for a sale in error, the court may not
award interest to the owner of the certificate of purchase for
the period after the mailing date of the county collector's
notice of intention to declare an administrative sale in error.
(Source: P.A. 94-662, eff. 1-1-06.)".