Bill Text: IL SB2950 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that no tax deed shall be issued for property in which a person with a disability has any ownership interest so long as an objection is raised by or on behalf of that person prior to the issuance of the tax deed or pursuant to certain provisions of the Code of Civil Procedure. Provides that any tax deed issued for property in which a person with a disability has an ownership interest shall be vacated upon petition by or on behalf of the person with a disability. Provides that, if the court refuses to enter an order directing the county clerk to execute and deliver the tax deed or if the court vacates the issuance of a tax deed, then, upon application of the owner of the certificate of purchase, the court shall declare the sale to be a sale in error. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2010-06-27 - Senate Floor Amendment No. 1 Re-referred to Assignments; Pursuant to Senate Rule 3-9(b). [SB2950 Detail]

Download: Illinois-2009-SB2950-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB2950 Introduced 1/28/2010, by Sen. Ira I. Silverstein SYNOPSIS AS INTRODUCED:
35 ILCS 200/21-315
35 ILCS 200/21-320
35 ILCS 200/21-330
35 ILCS 200/21-335
35 ILCS 200/22-39 new
Amends the Property Tax Code. Provides that no tax deed shall be issued for property in which a person with a disability has any ownership interest so long as an objection is raised by or on behalf of that person prior to the issuance of the tax deed or pursuant to certain provisions of the Code of Civil Procedure. Provides that any tax deed issued for property in which a person with a disability has an ownership interest shall be vacated upon petition by or on behalf of the person with a disability. Provides that, if the court refuses to enter an order directing the county clerk to execute and deliver the tax deed or if the court vacates the issuance of a tax deed, then, upon application of the owner of the certificate of purchase, the court shall declare the sale to be a sale in error. Effective immediately.
LRB096 19858 HLH 35313 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
SB2950 LRB096 19858 HLH 35313 b
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 21-315, 21-320, 21-330, and 21-335 and by adding
Section 22-39 as follows:
(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, 22-39,
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 or 22-39, 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. Except as previously stated in this subsection,

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interest 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, 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

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provided under subsection (c) of Section 21-310, and,
thereafter, the county collector elects to apply to the circuit
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.)
(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, 22-39, or 22-50 is declared, the amount refunded
shall also include 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; 92-729, eff. 7-25-02.)

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(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
interest and costs by 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, 22-39, or 22-50 or by declaration of the county
collector under subsection (c) of Section 21-310. Any moneys

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accumulated in the fund by the county treasurer in excess of
(i) $100,000 in counties with 250,000 or less inhabitants or
(ii) $500,000 in counties with more than 250,000 inhabitants
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. 94-362, eff. 7-29-05.)
(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, 22-39, or 22-50. Any claim
for interest or costs which is not included in the petition is
waived. 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 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
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

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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; 92-729, eff. 7-25-02.)
(35 ILCS 200/22-39 new)
Sec. 22-39. Protection of persons with disabilities.
(a) A "person with a disability" means any one of the
following:
(1) a person with a developmental disability as defined
by Section 11a-1 of the Probate Act of 1975 or Section
1-106 of the Mental Health and Developmental Disabilities
Code during any portion of the redemption period;
(2) a person who, by a preponderance of the evidence,
establishes that he or she was suffering from some mental
disability, deterioration, physical incapacity, or mental
illness, and, as result of that mental disability,
deterioration, physical incapacity, or mental illness, was
unable to fully manage his or her estate or financial
affairs during any portion of the redemption period;
(3) a person who, prior to or during the redemption
period, was adjudged a disabled person in accordance with
Sections 11a-2 and 11a-3 of the Probate Act of 1975 and for

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whom a plenary or limited guardian was appointed in
accordance with Section 11a-12 of the Probate Act of 1975,
if that limited or plenary guardian did not receive the
notices required under Sections 22-5, 22-10, 22-15, 22-20,
22-25, and 22-30 of this Code; or
(4) any person receiving treatment at a mental health
facility in accordance with the Mental Health And
Developmental Disabilities Code during any portion of the
redemption period.
(b) No tax deed shall be issued for property in which a
person with a disability has any ownership interest so long as
an objection is raised by or on behalf of the person with a
disability prior to the issuance of the tax deed. Within 30
days after the issuance of the tax deed, such objection may be
raised by or on behalf of the person with a disability pursuant
to Section 2-1203 of the Code of Civil Procedure.
(c) Any tax deed issued for property in which a person with
a disability has an ownership interest shall be vacated upon
petition by or on behalf of the person with a disability. To
the extent that the provisions of Section 22-45 of this Code
limit relief under Section 2-1401 of the Code of Civil
Procedure, those provisions shall not bar or otherwise limit a
person with a disability from invoking this Section as a basis
for vacating the issuance of a tax deed pursuant to this
Section.
(d) An objection or petition to vacate a tax deed brought

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pursuant to this Section is to be considered in light of
equitable principles.
(e) If the court refuses to enter an order directing the
county clerk to execute and deliver the tax deed or if the
court vacates the issuance of a tax deed in accordance with
this Section, then, upon application of the owner of the
certificate of purchase, the court shall declare the sale to be
a sale in error.
(f) That a person with a disability does not raise an
objection to the issuance of a tax deed or seek to vacate a tax
deed based upon this Section does not bar any indemnity action
pursuant to Section 21-305 of this Code brought by or on behalf
of the person with a disability.
Section 99. Effective date. This Act takes effect upon
becoming law.