Bill Text: IL SB3568 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Property Tax Code. Makes changes concerning payments from the Indemnity Fund to provide that all property owners who sustain loss or damage by reason of the issuance of a tax deed are entitled to payments from the Indemnity Fund. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB3568 Detail]
Download: Illinois-2023-SB3568-Introduced.html
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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, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | |||||||||||||||||||
5 | Section 21-305 as follows:
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6 | (35 ILCS 200/21-305) | |||||||||||||||||||
7 | Sec. 21-305. Payments from Indemnity Fund. | |||||||||||||||||||
8 | (a) Any owner of property sold under any provision of this | |||||||||||||||||||
9 | Code who sustains loss or damage by reason of the issuance of a | |||||||||||||||||||
10 | tax deed under Section 21-445 or 22-40 and who is barred or is | |||||||||||||||||||
11 | in any way precluded from bringing an action for the recovery | |||||||||||||||||||
12 | of the property shall have the right to indemnity for the loss | |||||||||||||||||||
13 | or damage sustained, limited as follows: | |||||||||||||||||||
14 | (1) An owner who resided on property that contained 4 | |||||||||||||||||||
15 | or less dwelling units on the last day of the period of | |||||||||||||||||||
16 | redemption and who is equitably entitled to compensation | |||||||||||||||||||
17 | for the loss or damage sustained has the right to | |||||||||||||||||||
18 | indemnity. An equitable indemnity award shall be limited | |||||||||||||||||||
19 | to the fair cash value of the property as of the date the | |||||||||||||||||||
20 | tax deed was issued less any mortgages or liens on the | |||||||||||||||||||
21 | property , and the award will not exceed $99,000 . The Court | |||||||||||||||||||
22 | shall liberally construe this equitable entitlement | |||||||||||||||||||
23 | standard to provide compensation wherever, in the |
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1 | discretion of the Court, the equities warrant the action. | ||||||
2 | An owner of a property that contained 4 or less | ||||||
3 | dwelling units who requests an award in excess of $99,000 | ||||||
4 | must prove that the loss of his or her property was not | ||||||
5 | attributable to his or her own fault or negligence before | ||||||
6 | an award in excess of $99,000 will be granted. | ||||||
7 | (2) (Blank). An owner who sustains the loss or damage | ||||||
8 | of any property occasioned by reason of the issuance of a | ||||||
9 | tax deed, without fault or negligence of his or her own, | ||||||
10 | has the right to indemnity limited to the fair cash value | ||||||
11 | of the property less any mortgages or liens on the | ||||||
12 | property. In determining the existence of fault or | ||||||
13 | negligence, the court shall consider whether the owner | ||||||
14 | exercised ordinary reasonable diligence under all of the | ||||||
15 | relevant circumstances. | ||||||
16 | (3) In determining the fair cash value of property | ||||||
17 | less any mortgages or liens on the property, the fair cash | ||||||
18 | value shall be reduced by the principal amount of all | ||||||
19 | taxes paid by the tax purchaser or his or her assignee | ||||||
20 | before the issuance of the tax deed. | ||||||
21 | (4) If an award made under this Section paragraph (1) | ||||||
22 | or (2) is subject to a reduction by the amount of an | ||||||
23 | outstanding mortgage or lien on the property, other than | ||||||
24 | the principal amount of all taxes paid by the tax | ||||||
25 | purchaser or his or her assignee before the issuance of | ||||||
26 | the tax deed and the petitioner would be personally liable |
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1 | to the mortgagee or lienholder for all or part of that | ||||||
2 | reduction amount, the court shall order an additional | ||||||
3 | indemnity award to be paid directly to the mortgagee or | ||||||
4 | lienholder sufficient to discharge the petitioner's | ||||||
5 | personal liability. The court, in its discretion, may | ||||||
6 | order the joinder of the mortgagee or lienholder as an | ||||||
7 | additional party to the indemnity action. | ||||||
8 | (b) Indemnity fund; subrogation. | ||||||
9 | (1) Any person claiming indemnity hereunder shall | ||||||
10 | petition the Court which ordered the tax deed to issue, | ||||||
11 | shall name the County Treasurer, as Trustee of the | ||||||
12 | indemnity fund, as defendant to the petition, and shall | ||||||
13 | ask that judgment be entered against the County Treasurer, | ||||||
14 | as Trustee, in the amount of the indemnity sought. The | ||||||
15 | provisions of the Civil Practice Law shall apply to | ||||||
16 | proceedings under the petition, except that neither the | ||||||
17 | petitioner nor County Treasurer shall be entitled to trial | ||||||
18 | by jury on the issues presented in the petition. The Court | ||||||
19 | shall liberally construe this Section to provide | ||||||
20 | compensation wherever in the discretion of the Court the | ||||||
21 | equities warrant such action. | ||||||
22 | (2) The County Treasurer, as Trustee of the indemnity | ||||||
23 | fund, shall be subrogated to all parties in whose favor | ||||||
24 | judgment may be rendered against him or her, and by third | ||||||
25 | party complaint may bring in as a defendant any person, | ||||||
26 | other than the tax deed grantee and its successors in |
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1 | title, not a party to the action who is or may be liable to | ||||||
2 | him or her, as subrogee, for all or part of the | ||||||
3 | petitioner's claim against him or her. | ||||||
4 | (c) Any contract involving the proceeds of a judgment for | ||||||
5 | indemnity under this Section, between the tax deed grantee or | ||||||
6 | its successors in title and the indemnity petitioner or his or | ||||||
7 | her successors, shall be in writing. In any action brought | ||||||
8 | under Section 21-305, the Collector shall be entitled to | ||||||
9 | discovery regarding, but not limited to, the following: | ||||||
10 | (1) the identity of all persons beneficially | ||||||
11 | interested in the contract, directly or indirectly, | ||||||
12 | including at least the following information: the names | ||||||
13 | and addresses of any natural persons; the place of | ||||||
14 | incorporation of any corporation and the names and | ||||||
15 | addresses of its shareholders unless it is publicly held; | ||||||
16 | the names and addresses of all general and limited | ||||||
17 | partners of any partnership; the names and addresses of | ||||||
18 | all persons having an ownership interest in any entity | ||||||
19 | doing business under an assumed name, and the county in | ||||||
20 | which the assumed business name is registered; and the | ||||||
21 | nature and extent of the interest in the contract of each | ||||||
22 | person identified; | ||||||
23 | (2) the time period during which the contract was | ||||||
24 | negotiated and agreed upon, from the date of the first | ||||||
25 | direct or indirect contact between any of the contracting | ||||||
26 | parties to the date of its execution; |
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1 | (3) the name and address of each natural person who | ||||||
2 | took part in negotiating the contract, and the identity | ||||||
3 | and relationship of the party that the person represented | ||||||
4 | in the negotiations; and | ||||||
5 | (4) the existence of an agreement for payment of | ||||||
6 | attorney's fees by or on behalf of each party. | ||||||
7 | Any information disclosed during discovery may be subject | ||||||
8 | to protective order as deemed appropriate by the court. The | ||||||
9 | terms of the contract shall not be used as evidence of value. | ||||||
10 | (d) A petition of indemnity under this Section must be | ||||||
11 | filed within 10 years after the date the tax deed was issued. | ||||||
12 | (Source: P.A. 97-557, eff. 7-1-12 .)
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