Public Act 100-0890
 
SB3215 EnrolledLRB100 18597 HLH 33821 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 21-310 and 21-385 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 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 
    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; however, if the 
    court declares a sale in error under this paragraph (2), 
    the court may order the holder of the certificate of 
    purchase to assign the certificate to the county collector 
    if requested by the county collector. The county collector 
    may, upon request of the county, as trustee, or upon 
    request of a taxing district having an interest in the 
    taxes sold, further assign any certificate of purchase 
    received pursuant to this paragraph (2) to the county 
    acting as trustee for taxing districts pursuant to Section 
    21-90 of this Code or to the taxing district having an 
    interest in the taxes sold.


        (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.

    Whenever a court declares a sale in error under this 
subsection (b), the court shall promptly notify the county 
collector in writing. Every such declaration pursuant to any 
provision of this subsection (b) shall be made within the 
proceeding in which the tax sale was authorized. 
    (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 
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 
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. Alternatively, for sales in error declared under 
subsection (b)(2), the county collector may request the circuit 
court to direct the county clerk to record any assignment of 
the tax certificate to or from the county collector without 
charging a fee for the assignment.  The owner of the certificate 
of purchase shall receive all statutory refunds and payments.  
The county collector shall deduct costs and payments in the 
same manner as if a sale in error had occurred. 

(Source: P.A. 94-312, eff. 7-25-05; 94-662, eff. 1-1-06; 
95-331, eff. 8-21-07.)

 



    (35 ILCS 200/21-385)



    Sec. 21-385. Extension of period of redemption. The

purchaser or his or her assignee of property
sold for 
nonpayment of general taxes or special assessments may extend

the period of redemption at any time before the expiration of 
the
original period of redemption, or thereafter prior to the 
expiration of any
extended period of redemption, for a period 
which will expire not later than 3
years from the date of sale, 
by filing with the county clerk of
the county in which the 
property is located a written notice to that
effect describing 
the property, stating the date of the sale and
specifying the 
extended period of redemption.  If prior to the
expiration of 
the period of redemption or extended period of redemption
a 
petition for tax deed has been filed under Section
22-30, upon 
application of the petitioner, the court shall allow the

purchaser or his or her assignee to extend the period of 
redemption after
expiration of the original period or any 
extended period of redemption,
provided that any extension 
allowed will expire not later than 3 years from the
date of 
sale, unless the certificate has been assigned to the county 
collector by order of the court which ordered the property 
sold, in which case the period of redemption shall be extended 
for such period as may be designated by the holder of the 
certificate, such period not to exceed 36  months from the date 
of the assignment to the collector.  If the period of redemption 
is extended, the purchaser or his or
her assignee must give the 
notices provided for in Section 22-10 at the
specified times 
prior to the expiration of the extended period of redemption by

causing a sheriff (or if he or she is disqualified, a coroner) 
of the county in
which the property, or any part thereof, is 
located to serve the notices as
provided in Sections 22-15 and 
22-20.
The notices may also be served as provided in Sections 
22-15 and 22-20 by a
special process server appointed by the 
court under Section 22-15.

(Source: P.A. 91-209, eff. 1-1-00; 91-554, eff. 8-14-99.)