Illinois 2023-2024 Regular Session

Illinois House Bill HB3028 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3028 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED: 35 ILCS 200/21-310 35 ILCS 200/22-40 35 ILCS 200/22-85 Amends the Property Tax Code. In provisions concerning the issuance of a tax deed, provides that the court shall find that all forfeitures and sales of the property occurring after the tax sale at which the certificate of purchase was issued and including only subsequent years taxes have been redeemed (currently, all forfeitures and sales that occur subsequent to the sale). Provides that a sale of the property that occurs after the tax sale at which the certificate of purchase was issued and includes only tax years that are prior to the year or years sold, or includes tax years which are both prior to and after the year or years sold, shall be declared a sale in error, and those tax years shall be merged into the tax deed grantee's title. Effective immediately. LRB103 06054 HLH 51084 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3028 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED: 35 ILCS 200/21-310 35 ILCS 200/22-40 35 ILCS 200/22-85 35 ILCS 200/21-310 35 ILCS 200/22-40 35 ILCS 200/22-85 Amends the Property Tax Code. In provisions concerning the issuance of a tax deed, provides that the court shall find that all forfeitures and sales of the property occurring after the tax sale at which the certificate of purchase was issued and including only subsequent years taxes have been redeemed (currently, all forfeitures and sales that occur subsequent to the sale). Provides that a sale of the property that occurs after the tax sale at which the certificate of purchase was issued and includes only tax years that are prior to the year or years sold, or includes tax years which are both prior to and after the year or years sold, shall be declared a sale in error, and those tax years shall be merged into the tax deed grantee's title. Effective immediately. LRB103 06054 HLH 51084 b LRB103 06054 HLH 51084 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3028 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 200/21-310 35 ILCS 200/22-40 35 ILCS 200/22-85 35 ILCS 200/21-310 35 ILCS 200/22-40 35 ILCS 200/22-85
4	4	35 ILCS 200/21-310
5	5	35 ILCS 200/22-40
6	6	35 ILCS 200/22-85
7	7	Amends the Property Tax Code. In provisions concerning the issuance of a tax deed, provides that the court shall find that all forfeitures and sales of the property occurring after the tax sale at which the certificate of purchase was issued and including only subsequent years taxes have been redeemed (currently, all forfeitures and sales that occur subsequent to the sale). Provides that a sale of the property that occurs after the tax sale at which the certificate of purchase was issued and includes only tax years that are prior to the year or years sold, or includes tax years which are both prior to and after the year or years sold, shall be declared a sale in error, and those tax years shall be merged into the tax deed grantee's title. Effective immediately.
8	8	LRB103 06054 HLH 51084 b LRB103 06054 HLH 51084 b
9	9	LRB103 06054 HLH 51084 b
10	10	A BILL FOR
11	11	HB3028LRB103 06054 HLH 51084 b HB3028 LRB103 06054 HLH 51084 b
12	12	HB3028 LRB103 06054 HLH 51084 b
13	13	1 AN ACT concerning revenue.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Property Tax Code is amended by changing
17	17	5 Sections 21-310, 22-40, and 22-85 as follows:
18	18	6 (35 ILCS 200/21-310)
19	19	7 Sec. 21-310. Sales in error.
20	20	8 (a) When, upon application of the county collector, the
21	21	9 owner of the certificate of purchase, or a municipality which
22	22	10 owns or has owned the property ordered sold, or an owner of a
23	23	11 certificate of purchase whose lien is subject to prior tax
24	24	12 years sold subsequent to its purchase as set forth in
25	25	13 subsection (b) of Section 22-40, it appears to the
26	26	14 satisfaction of the court which ordered the property sold that
27	27	15 any of the following subsections are applicable, the court
28	28	16 shall declare the sale to be a sale in error:
29	29	17 (1) the property was not subject to taxation, or all
30	30	18 or any part of the lien of taxes sold has become null and
31	31	19 void pursuant to Section 21-95 or unenforceable pursuant
32	32	20 to subsection (c) of Section 18-250 or subsection (b) of
33	33	21 Section 22-40,
34	34	22 (2) the taxes or special assessments had been paid
35	35	23 prior to the sale of the property,
36	36
37	37
38	38
39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3028 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
40	40	35 ILCS 200/21-310 35 ILCS 200/22-40 35 ILCS 200/22-85 35 ILCS 200/21-310 35 ILCS 200/22-40 35 ILCS 200/22-85
41	41	35 ILCS 200/21-310
42	42	35 ILCS 200/22-40
43	43	35 ILCS 200/22-85
44	44	Amends the Property Tax Code. In provisions concerning the issuance of a tax deed, provides that the court shall find that all forfeitures and sales of the property occurring after the tax sale at which the certificate of purchase was issued and including only subsequent years taxes have been redeemed (currently, all forfeitures and sales that occur subsequent to the sale). Provides that a sale of the property that occurs after the tax sale at which the certificate of purchase was issued and includes only tax years that are prior to the year or years sold, or includes tax years which are both prior to and after the year or years sold, shall be declared a sale in error, and those tax years shall be merged into the tax deed grantee's title. Effective immediately.
45	45	LRB103 06054 HLH 51084 b LRB103 06054 HLH 51084 b
46	46	LRB103 06054 HLH 51084 b
47	47	A BILL FOR
48	48
49	49
50	50
51	51
52	52
53	53	35 ILCS 200/21-310
54	54	35 ILCS 200/22-40
55	55	35 ILCS 200/22-85
56	56
57	57
58	58
59	59	LRB103 06054 HLH 51084 b
60	60
61	61
62	62
63	63
64	64
65	65
66	66
67	67
68	68
69	69	HB3028 LRB103 06054 HLH 51084 b
70	70
71	71
72	72	HB3028- 2 -LRB103 06054 HLH 51084 b HB3028 - 2 - LRB103 06054 HLH 51084 b
73	73	HB3028 - 2 - LRB103 06054 HLH 51084 b
74	74	1 (3) there is a double assessment,
75	75	2 (4) the description is void for uncertainty,
76	76	3 (5) the assessor, chief county assessment officer,
77	77	4 board of review, board of appeals, or other county
78	78	5 official has made an error (other than an error of
79	79	6 judgment as to the value of any property),
80	80	7 (5.5) the owner of the homestead property had tendered
81	81	8 timely and full payment to the county collector that the
82	82	9 owner reasonably believed was due and owing on the
83	83	10 homestead property, and the county collector did not apply
84	84	11 the payment to the homestead property; provided that this
85	85	12 provision applies only to homeowners, not their agents or
86	86	13 third-party payors,
87	87	14 (6) prior to the tax sale a voluntary or involuntary
88	88	15 petition has been filed by or against the legal or
89	89	16 beneficial owner of the property requesting relief under
90	90	17 the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
91	91	18 (7) the property is owned by the United States, the
92	92	19 State of Illinois, a municipality, or a taxing district,
93	93	20 or
94	94	21 (8) the owner of the property is a reservist or
95	95	22 guardsperson who is granted an extension of his or her due
96	96	23 date under Sections 21-15, 21-20, and 21-25 of this Act.
97	97	24 (b) When, upon application of the owner of the certificate
98	98	25 of purchase only, it appears to the satisfaction of the court
99	99	26 which ordered the property sold that any of the following
100	100
101	101
102	102
103	103
104	104
105	105	HB3028 - 2 - LRB103 06054 HLH 51084 b
106	106
107	107
108	108	HB3028- 3 -LRB103 06054 HLH 51084 b HB3028 - 3 - LRB103 06054 HLH 51084 b
109	109	HB3028 - 3 - LRB103 06054 HLH 51084 b
110	110	1 subsections are applicable, the court shall declare the sale
111	111	2 to be a sale in error:
112	112	3 (1) A voluntary or involuntary petition under the
113	113	4 provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
114	114	5 filed subsequent to the tax sale and prior to the issuance
115	115	6 of the tax deed.
116	116	7 (2) The improvements upon the property sold have been
117	117	8 substantially destroyed or rendered uninhabitable or
118	118	9 otherwise unfit for occupancy subsequent to the tax sale
119	119	10 and prior to the issuance of the tax deed; however, if the
120	120	11 court declares a sale in error under this paragraph (2),
121	121	12 the court may order the holder of the certificate of
122	122	13 purchase to assign the certificate to the county collector
123	123	14 if requested by the county collector. The county collector
124	124	15 may, upon request of the county, as trustee, or upon
125	125	16 request of a taxing district having an interest in the
126	126	17 taxes sold, further assign any certificate of purchase
127	127	18 received pursuant to this paragraph (2) to the county
128	128	19 acting as trustee for taxing districts pursuant to Section
129	129	20 21-90 of this Code or to the taxing district having an
130	130	21 interest in the taxes sold.
131	131	22 (3) There is an interest held by the United States in
132	132	23 the property sold which could not be extinguished by the
133	133	24 tax deed.
134	134	25 (4) The real property contains a hazardous substance,
135	135	26 hazardous waste, or underground storage tank that would
136	136
137	137
138	138
139	139
140	140
141	141	HB3028 - 3 - LRB103 06054 HLH 51084 b
142	142
143	143
144	144	HB3028- 4 -LRB103 06054 HLH 51084 b HB3028 - 4 - LRB103 06054 HLH 51084 b
145	145	HB3028 - 4 - LRB103 06054 HLH 51084 b
146	146	1 require cleanup or other removal under any federal, State,
147	147	2 or local law, ordinance, or regulation, only if the tax
148	148	3 purchaser purchased the property without actual knowledge
149	149	4 of the hazardous substance, hazardous waste, or
150	150	5 underground storage tank. This paragraph (4) applies only
151	151	6 if the owner of the certificate of purchase has made
152	152	7 application for a sale in error at any time before the
153	153	8 issuance of a tax deed. If the court declares a sale in
154	154	9 error under this paragraph (4), the court may order the
155	155	10 holder of the certificate of purchase to assign the
156	156	11 certificate to the county collector if requested by the
157	157	12 county collector. The county collector may, upon request
158	158	13 of the county, as trustee, or upon request of a taxing
159	159	14 district having an interest in the taxes sold, further
160	160	15 assign any certificate of purchase received pursuant to
161	161	16 this paragraph (4) to the county acting as trustee for
162	162	17 taxing districts pursuant to Section 21-90 of this Code or
163	163	18 to the taxing district having an interest in the taxes
164	164	19 sold.
165	165	20 Whenever a court declares a sale in error under this
166	166	21 subsection (b), the court shall promptly notify the county
167	167	22 collector in writing. Every such declaration pursuant to any
168	168	23 provision of this subsection (b) shall be made within the
169	169	24 proceeding in which the tax sale was authorized.
170	170	25 (c) When the county collector discovers, prior to the
171	171	26 expiration of the period of redemption, that a tax sale should
172	172
173	173
174	174
175	175
176	176
177	177	HB3028 - 4 - LRB103 06054 HLH 51084 b
178	178
179	179
180	180	HB3028- 5 -LRB103 06054 HLH 51084 b HB3028 - 5 - LRB103 06054 HLH 51084 b
181	181	HB3028 - 5 - LRB103 06054 HLH 51084 b
182	182	1 not have occurred for one or more of the reasons set forth in
183	183	2 subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
184	184	3 the county collector shall notify the last known owner of the
185	185	4 certificate of purchase by certified and regular mail, or
186	186	5 other means reasonably calculated to provide actual notice,
187	187	6 that the county collector intends to declare an administrative
188	188	7 sale in error and of the reasons therefor, including
189	189	8 documentation sufficient to establish the reason why the sale
190	190	9 should not have occurred. The owner of the certificate of
191	191	10 purchase may object in writing within 28 days after the date of
192	192	11 the mailing by the county collector. If an objection is filed,
193	193	12 the county collector shall not administratively declare a sale
194	194	13 in error, but may apply to the circuit court for a sale in
195	195	14 error as provided in subsection (a) of this Section. Thirty
196	196	15 days following the receipt of notice by the last known owner of
197	197	16 the certificate of purchase, or within a reasonable time
198	198	17 thereafter, the county collector shall make a written
199	199	18 declaration, based upon clear and convincing evidence, that
200	200	19 the taxes were sold in error and shall deliver a copy thereof
201	201	20 to the county clerk within 30 days after the date the
202	202	21 declaration is made for entry in the tax judgment, sale,
203	203	22 redemption, and forfeiture record pursuant to subsection (d)
204	204	23 of this Section. The county collector shall promptly notify
205	205	24 the last known owner of the certificate of purchase of the
206	206	25 declaration by regular mail and shall promptly pay the amount
207	207	26 of the tax sale, together with interest and costs as provided
208	208
209	209
210	210
211	211
212	212
213	213	HB3028 - 5 - LRB103 06054 HLH 51084 b
214	214
215	215
216	216	HB3028- 6 -LRB103 06054 HLH 51084 b HB3028 - 6 - LRB103 06054 HLH 51084 b
217	217	HB3028 - 6 - LRB103 06054 HLH 51084 b
218	218	1 in Section 21-315, upon surrender of the original certificate
219	219	2 of purchase.
220	220	3 (d) If a sale is declared to be a sale in error, the county
221	221	4 clerk shall make entry in the tax judgment, sale, redemption
222	222	5 and forfeiture record, that the property was erroneously sold,
223	223	6 and the county collector shall, on demand of the owner of the
224	224	7 certificate of purchase, refund the amount paid, except for
225	225	8 the nonrefundable $80 fee paid, pursuant to Section 21-295,
226	226	9 for each item purchased at the tax sale, pay any interest and
227	227	10 costs as may be ordered under Sections 21-315 through 21-335,
228	228	11 and cancel the certificate so far as it relates to the
229	229	12 property. The county collector shall deduct from the accounts
230	230	13 of the appropriate taxing bodies their pro rata amounts paid.
231	231	14 Alternatively, for sales in error declared under subsection
232	232	15 (b)(2) or (b)(4), the county collector may request the circuit
233	233	16 court to direct the county clerk to record any assignment of
234	234	17 the tax certificate to or from the county collector without
235	235	18 charging a fee for the assignment. The owner of the
236	236	19 certificate of purchase shall receive all statutory refunds
237	237	20 and payments. The county collector shall deduct costs and
238	238	21 payments in the same manner as if a sale in error had occurred.
239	239	22 (Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20;
240	240	23 101-659, eff. 3-23-21.)
241	241	24 (35 ILCS 200/22-40)
242	242	25 Sec. 22-40. Issuance of deed; possession.
243	243
244	244
245	245
246	246
247	247
248	248	HB3028 - 6 - LRB103 06054 HLH 51084 b
249	249
250	250
251	251	HB3028- 7 -LRB103 06054 HLH 51084 b HB3028 - 7 - LRB103 06054 HLH 51084 b
252	252	HB3028 - 7 - LRB103 06054 HLH 51084 b
253	253	1 (a) The court If the redemption period expires and the
254	254	2 property has not been redeemed and all taxes and special
255	255	3 assessments which became due and payable subsequent to the
256	256	4 sale have been paid and all forfeitures and sales which occur
257	257	5 subsequent to the sale have been redeemed and the notices
258	258	6 required by law have been given and all advancements of public
259	259	7 funds under the police power made by a county, city, village or
260	260	8 town under Section 22-35 have been paid and the petitioner has
261	261	9 complied with all the provisions of law entitling him or her to
262	262	10 a deed, the court shall so find and shall enter an order
263	263	11 directing the county clerk, on the production of the
264	264	12 certificate of purchase and a certified copy of the order, to
265	265	13 issue to the purchaser or his or her assignee a tax deed if the
266	266	14 court finds all of the following: .
267	267	15 (1) that the redemption period has expired and the
268	268	16 property has not been redeemed;
269	269	17 (2) that all taxes and special assessments on the
270	270	18 property that became due and payable after the tax sale at
271	271	19 which the certificate of purchase was issued have been
272	272	20 paid;
273	273	21 (3) that all forfeitures and sales of the property
274	274	22 that occur after the tax sale at which the certificate of
275	275	23 purchase was issued and include only subsequent years
276	276	24 taxes have been redeemed;
277	277	25 (4) that the notices required by law have been given;
278	278	26 (5) that all advancements of public funds under the
279	279
280	280
281	281
282	282
283	283
284	284	HB3028 - 7 - LRB103 06054 HLH 51084 b
285	285
286	286
287	287	HB3028- 8 -LRB103 06054 HLH 51084 b HB3028 - 8 - LRB103 06054 HLH 51084 b
288	288	HB3028 - 8 - LRB103 06054 HLH 51084 b
289	289	1 police power made by a county, city, village or town under
290	290	2 Section 22-35 have been paid; and
291	291	3 (6) that the petitioner has complied with all the
292	292	4 provisions of law entitling him or her to a deed.
293	293	5 The court shall insist on strict compliance with Section
294	294	6 22-10 through 22-25. Prior to the entry of an order directing
295	295	7 the issuance of a tax deed, the petitioner shall furnish the
296	296	8 court with a report of proceedings of the evidence received on
297	297	9 the application for tax deed and the report of proceedings
298	298	10 shall be filed and made a part of the court record.
299	299	11 (b) If taxes for years prior to the year or years sold are
300	300	12 or become delinquent subsequent to the date of sale, the court
301	301	13 shall find that the lien of those delinquent taxes has been or
302	302	14 will be merged into the tax deed grantee's title if the court
303	303	15 determines that the tax deed grantee or any prior holder of the
304	304	16 certificate of purchase, or any person or entity under common
305	305	17 ownership or control with any such grantee or prior holder of
306	306	18 the certificate of purchase, was at no time the holder of any
307	307	19 certificate of purchase for the years sought to be merged. A
308	308	20 sale of the property that occurs after the tax sale at which
309	309	21 the certificate of purchase was issued and includes only tax
310	310	22 years that are prior to the year or years sold, or includes
311	311	23 both tax years that are prior to the year or years sold and tax
312	312	24 years that are after the year or years sold, shall be declared
313	313	25 a sale in error, and those tax years that are included in the
314	314	26 subsequent sale and are prior to the year or years sold shall
315	315
316	316
317	317
318	318
319	319
320	320	HB3028 - 8 - LRB103 06054 HLH 51084 b
321	321
322	322
323	323	HB3028- 9 -LRB103 06054 HLH 51084 b HB3028 - 9 - LRB103 06054 HLH 51084 b
324	324	HB3028 - 9 - LRB103 06054 HLH 51084 b
325	325	1 be merged into the tax deed grantee's title if the court
326	326	2 determines that the tax deed grantee or any prior holder of the
327	327	3 certificate of purchase, or any person or entity under common
328	328	4 ownership or control with any such grantee or prior holder of
329	329	5 the certificate of purchase, was at no time the holder of any
330	330	6 certificate of purchase for the years sought to be merged. If
331	331	7 delinquent taxes are merged into the tax deed pursuant to this
332	332	8 subsection, the court shall enter an order declaring which
333	333	9 specific taxes have been or will be merged into the tax deed
334	334	10 title and directing the county treasurer and county clerk to
335	335	11 reflect that declaration in the warrant and judgment records;
336	336	12 provided, that no such order shall be effective until a tax
337	337	13 deed has been issued and timely recorded. Nothing contained in
338	338	14 this Section shall relieve any owner liable for delinquent
339	339	15 property taxes under this Code from the payment of the taxes
340	340	16 that have been merged into the title upon issuance of the tax
341	341	17 deed.
342	342	18 (c) The county clerk is entitled to a fee of $10 in
343	343	19 counties of 3,000,000 or more inhabitants and $5 in counties
344	344	20 with less than 3,000,000 inhabitants for the issuance of the
345	345	21 tax deed. The clerk may not include in a tax deed more than one
346	346	22 property as listed, assessed and sold in one description,
347	347	23 except in cases where several properties are owned by one
348	348	24 person.
349	349	25 Upon application the court shall, enter an order to place
350	350	26 the tax deed grantee or the grantee's successor in interest in
351	351
352	352
353	353
354	354
355	355
356	356	HB3028 - 9 - LRB103 06054 HLH 51084 b
357	357
358	358
359	359	HB3028- 10 -LRB103 06054 HLH 51084 b HB3028 - 10 - LRB103 06054 HLH 51084 b
360	360	HB3028 - 10 - LRB103 06054 HLH 51084 b
361	361	1 possession of the property and may enter orders and grant
362	362	2 relief as may be necessary or desirable to maintain the
363	363	3 grantee or the grantee's successor in interest in possession.
364	364	4 (d) The court shall retain jurisdiction to enter orders
365	365	5 pursuant to subsections (b) and (c) of this Section. This
366	366	6 amendatory Act of the 92nd General Assembly and this
367	367	7 amendatory Act of the 95th General Assembly shall be construed
368	368	8 as being declarative of existing law and not as a new
369	369	9 enactment.
370	370	10 (Source: P.A. 98-1162, eff. 6-1-15.)
371	371	11 (35 ILCS 200/22-85)
372	372	12 Sec. 22-85. Failure to timely take out and record deed;
373	373	13 deed is void. Unless the holder of the certificate purchased
374	374	14 at any tax sale under this Code takes out the deed in the time
375	375	15 provided by law, and records the same within one year from and
376	376	16 after the time for redemption expires, the certificate or
377	377	17 deed, and the sale on which it is based, shall, after the
378	378	18 expiration of the one year period, be absolutely void with no
379	379	19 right to reimbursement. If the holder of the certificate is
380	380	20 prevented from obtaining or recording a deed by injunction or
381	381	21 order of any court, or by the refusal or inability of any court
382	382	22 to act upon the application for a tax deed, or by the refusal
383	383	23 of the clerk to execute the same deed, or by the refusal,
384	384	24 inability, or delay of any county, city, village, or
385	385	25 incorporated town to issue transfer stamps, the time he or she
386	386
387	387
388	388
389	389
390	390
391	391	HB3028 - 10 - LRB103 06054 HLH 51084 b
392	392
393	393
394	394	HB3028- 11 -LRB103 06054 HLH 51084 b HB3028 - 11 - LRB103 06054 HLH 51084 b
395	395	HB3028 - 11 - LRB103 06054 HLH 51084 b
396	396	1 is so prevented shall be excluded from computation of the one
397	397	2 year period. Certificates of purchase and deeds executed by
398	398	3 the clerk shall recite the qualifications required in this
399	399	4 Section. The court shall retain jurisdiction to enter orders
400	400	5 pursuant to this Section.
401	401	6 (Source: P.A. 87-669; 88-455.)
402	402	7 Section 99. Effective date. This Act takes effect upon
403	403	8 becoming law.
404	404
405	405
406	406
407	407
408	408
409	409	HB3028 - 11 - LRB103 06054 HLH 51084 b