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Illinois House Bill HB3394

Illinois 2023-2024 Regular Session

Illinois House Bill HB3394 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3394 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED: 35 ILCS 200/21-310 35 ILCS 516/255 Amends the Property Tax Code. Provides that the owner of the certificate of purchase shall promptly notify the county collector in writing that a petition for a sale in error has been filed. Provides that the court may deny the petition for a sale in error if the notice is not filed. Amends the Property Tax Code and the Mobile Home Local Services Tax Enforcement Act. Provides that, when the owner of the certificate of purchase is the county as trustee for taxing districts, then, upon request of or consent by the county as trustee, the county collector may declare an administrative sale in error at any time and for any reason. Provides that the declaration shall state the reason why the sale should not have occurred. Effective immediately. LRB103 25282 HLH 51626 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3394 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED: 35 ILCS 200/21-310 35 ILCS 516/255 35 ILCS 200/21-310 35 ILCS 516/255 Amends the Property Tax Code. Provides that the owner of the certificate of purchase shall promptly notify the county collector in writing that a petition for a sale in error has been filed. Provides that the court may deny the petition for a sale in error if the notice is not filed. Amends the Property Tax Code and the Mobile Home Local Services Tax Enforcement Act. Provides that, when the owner of the certificate of purchase is the county as trustee for taxing districts, then, upon request of or consent by the county as trustee, the county collector may declare an administrative sale in error at any time and for any reason. Provides that the declaration shall state the reason why the sale should not have occurred. Effective immediately. LRB103 25282 HLH 51626 b LRB103 25282 HLH 51626 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3394 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
33 35 ILCS 200/21-310 35 ILCS 516/255 35 ILCS 200/21-310 35 ILCS 516/255
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66 Amends the Property Tax Code. Provides that the owner of the certificate of purchase shall promptly notify the county collector in writing that a petition for a sale in error has been filed. Provides that the court may deny the petition for a sale in error if the notice is not filed. Amends the Property Tax Code and the Mobile Home Local Services Tax Enforcement Act. Provides that, when the owner of the certificate of purchase is the county as trustee for taxing districts, then, upon request of or consent by the county as trustee, the county collector may declare an administrative sale in error at any time and for any reason. Provides that the declaration shall state the reason why the sale should not have occurred. Effective immediately.
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1212 1 AN ACT concerning revenue.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Property Tax Code is amended by changing
1616 5 Section 21-310 as follows:
1717 6 (35 ILCS 200/21-310)
1818 7 Sec. 21-310. Sales in error.
1919 8 (a) When, upon application of the county collector, the
2020 9 owner of the certificate of purchase, or a municipality which
2121 10 owns or has owned the property ordered sold, it appears to the
2222 11 satisfaction of the court which ordered the property sold that
2323 12 any of the following subsections are applicable, the court
2424 13 shall declare the sale to be a sale in error:
2525 14 (1) the property was not subject to taxation, or all
2626 15 or any part of the lien of taxes sold has become null and
2727 16 void pursuant to Section 21-95 or unenforceable pursuant
2828 17 to subsection (c) of Section 18-250 or subsection (b) of
2929 18 Section 22-40,
3030 19 (2) the taxes or special assessments had been paid
3131 20 prior to the sale of the property,
3232 21 (3) there is a double assessment,
3333 22 (4) the description is void for uncertainty,
3434 23 (5) the assessor, chief county assessment officer,
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3394 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
3939 35 ILCS 200/21-310 35 ILCS 516/255 35 ILCS 200/21-310 35 ILCS 516/255
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4141 35 ILCS 516/255
4242 Amends the Property Tax Code. Provides that the owner of the certificate of purchase shall promptly notify the county collector in writing that a petition for a sale in error has been filed. Provides that the court may deny the petition for a sale in error if the notice is not filed. Amends the Property Tax Code and the Mobile Home Local Services Tax Enforcement Act. Provides that, when the owner of the certificate of purchase is the county as trustee for taxing districts, then, upon request of or consent by the county as trustee, the county collector may declare an administrative sale in error at any time and for any reason. Provides that the declaration shall state the reason why the sale should not have occurred. Effective immediately.
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7171 1 board of review, board of appeals, or other county
7272 2 official has made an error (other than an error of
7373 3 judgment as to the value of any property),
7474 4 (5.5) the owner of the homestead property had tendered
7575 5 timely and full payment to the county collector that the
7676 6 owner reasonably believed was due and owing on the
7777 7 homestead property, and the county collector did not apply
7878 8 the payment to the homestead property; provided that this
7979 9 provision applies only to homeowners, not their agents or
8080 10 third-party payors,
8181 11 (6) prior to the tax sale a voluntary or involuntary
8282 12 petition has been filed by or against the legal or
8383 13 beneficial owner of the property requesting relief under
8484 14 the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
8585 15 (7) the property is owned by the United States, the
8686 16 State of Illinois, a municipality, or a taxing district,
8787 17 or
8888 18 (8) the owner of the property is a reservist or
8989 19 guardsperson who is granted an extension of his or her due
9090 20 date under Sections 21-15, 21-20, and 21-25 of this Act.
9191 21 (b) When, upon application of the owner of the certificate
9292 22 of purchase only, it appears to the satisfaction of the court
9393 23 which ordered the property sold that any of the following
9494 24 subsections are applicable, the court shall declare the sale
9595 25 to be a sale in error:
9696 26 (1) A voluntary or involuntary petition under the
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107107 1 provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
108108 2 filed subsequent to the tax sale and prior to the issuance
109109 3 of the tax deed.
110110 4 (2) The improvements upon the property sold have been
111111 5 substantially destroyed or rendered uninhabitable or
112112 6 otherwise unfit for occupancy subsequent to the tax sale
113113 7 and prior to the issuance of the tax deed; however, if the
114114 8 court declares a sale in error under this paragraph (2),
115115 9 the court may order the holder of the certificate of
116116 10 purchase to assign the certificate to the county collector
117117 11 if requested by the county collector. The county collector
118118 12 may, upon request of the county, as trustee, or upon
119119 13 request of a taxing district having an interest in the
120120 14 taxes sold, further assign any certificate of purchase
121121 15 received pursuant to this paragraph (2) to the county
122122 16 acting as trustee for taxing districts pursuant to Section
123123 17 21-90 of this Code or to the taxing district having an
124124 18 interest in the taxes sold.
125125 19 (3) There is an interest held by the United States in
126126 20 the property sold which could not be extinguished by the
127127 21 tax deed.
128128 22 (4) The real property contains a hazardous substance,
129129 23 hazardous waste, or underground storage tank that would
130130 24 require cleanup or other removal under any federal, State,
131131 25 or local law, ordinance, or regulation, only if the tax
132132 26 purchaser purchased the property without actual knowledge
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143143 1 of the hazardous substance, hazardous waste, or
144144 2 underground storage tank. This paragraph (4) applies only
145145 3 if the owner of the certificate of purchase has made
146146 4 application for a sale in error at any time before the
147147 5 issuance of a tax deed. If the court declares a sale in
148148 6 error under this paragraph (4), the court may order the
149149 7 holder of the certificate of purchase to assign the
150150 8 certificate to the county collector if requested by the
151151 9 county collector. The county collector may, upon request
152152 10 of the county, as trustee, or upon request of a taxing
153153 11 district having an interest in the taxes sold, further
154154 12 assign any certificate of purchase received pursuant to
155155 13 this paragraph (4) to the county acting as trustee for
156156 14 taxing districts pursuant to Section 21-90 of this Code or
157157 15 to the taxing district having an interest in the taxes
158158 16 sold.
159159 17 (b-5) Upon filing a petition for a sale in error under
160160 18 subsection (b), the owner of the certificate of purchase shall
161161 19 promptly notify the county collector in writing that such a
162162 20 petition has been filed. The court may deny the petition for a
163163 21 sale in error if the owner of the certificate of purchase fails
164164 22 to file the notice under this subsection.
165165 23 (b-10) Whenever a court declares a sale in error under
166166 24 this subsection (b), the court shall promptly notify the
167167 25 county collector in writing. Every such declaration pursuant
168168 26 to any provision of this subsection (b) shall be made within
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179179 1 the proceeding in which the tax sale was authorized.
180180 2 (c) When the county collector discovers, prior to the
181181 3 expiration of the period of redemption, that a tax sale should
182182 4 not have occurred for one or more of the reasons set forth in
183183 5 subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
184184 6 the county collector shall notify the last known owner of the
185185 7 certificate of purchase by certified and regular mail, or
186186 8 other means reasonably calculated to provide actual notice,
187187 9 that the county collector intends to declare an administrative
188188 10 sale in error and of the reasons therefor, including
189189 11 documentation sufficient to establish the reason why the sale
190190 12 should not have occurred. The owner of the certificate of
191191 13 purchase may object in writing within 28 days after the date of
192192 14 the mailing by the county collector. If an objection is filed,
193193 15 the county collector shall not administratively declare a sale
194194 16 in error, but may apply to the circuit court for a sale in
195195 17 error as provided in subsection (a) of this Section. Thirty
196196 18 days following the receipt of notice by the last known owner of
197197 19 the certificate of purchase, or within a reasonable time
198198 20 thereafter, the county collector shall make a written
199199 21 declaration, based upon clear and convincing evidence, that
200200 22 the taxes were sold in error and shall deliver a copy thereof
201201 23 to the county clerk within 30 days after the date the
202202 24 declaration is made for entry in the tax judgment, sale,
203203 25 redemption, and forfeiture record pursuant to subsection (d)
204204 26 of this Section. The county collector shall promptly notify
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215215 1 the last known owner of the certificate of purchase of the
216216 2 declaration by regular mail and shall promptly pay the amount
217217 3 of the tax sale, together with interest and costs as provided
218218 4 in Section 21-315, upon surrender of the original certificate
219219 5 of purchase. If the owner of the certificate of purchase is the
220220 6 county as trustee for taxing districts, then, upon request of
221221 7 or consent by the county as trustee, the county collector may
222222 8 declare an administrative sale in error at any time and for any
223223 9 reason. The declaration shall state the reason why the sale
224224 10 should not have occurred.
225225 11 (d) If a sale is declared to be a sale in error, the county
226226 12 clerk shall make entry in the tax judgment, sale, redemption
227227 13 and forfeiture record, that the property was erroneously sold,
228228 14 and the county collector shall, on demand of the owner of the
229229 15 certificate of purchase, refund the amount paid, except for
230230 16 the nonrefundable $80 fee paid, pursuant to Section 21-295,
231231 17 for each item purchased at the tax sale, pay any interest and
232232 18 costs as may be ordered under Sections 21-315 through 21-335,
233233 19 and cancel the certificate so far as it relates to the
234234 20 property. The county collector shall deduct from the accounts
235235 21 of the appropriate taxing bodies their pro rata amounts paid.
236236 22 Alternatively, for sales in error declared under subsection
237237 23 (b)(2) or (b)(4), the county collector may request the circuit
238238 24 court to direct the county clerk to record any assignment of
239239 25 the tax certificate to or from the county collector without
240240 26 charging a fee for the assignment. The owner of the
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251251 1 certificate of purchase shall receive all statutory refunds
252252 2 and payments. The county collector shall deduct costs and
253253 3 payments in the same manner as if a sale in error had occurred.
254254 4 (Source: P.A. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20;
255255 5 101-659, eff. 3-23-21.)
256256 6 Section 10. The Mobile Home Local Services Tax Enforcement
257257 7 Act is amended by changing Section 255 as follows:
258258 8 (35 ILCS 516/255)
259259 9 Sec. 255. Sales in error.
260260 10 (a) When, upon application of the county collector, the
261261 11 owner of the certificate of purchase, or a municipality that
262262 12 owns or has owned the mobile home ordered sold, it appears to
263263 13 the satisfaction of the court that ordered the mobile home
264264 14 sold that any of the following subsections are applicable, the
265265 15 court shall declare the sale to be a sale in error:
266266 16 (1) the mobile home was not subject to taxation,
267267 17 (1.5) the mobile home has been moved to a different
268268 18 location,
269269 19 (2) the taxes had been paid prior to the sale of the
270270 20 mobile home,
271271 21 (3) there is a double computation of the tax,
272272 22 (4) the description is void for uncertainty,
273273 23 (5) the assessor, chief county assessment officer,
274274 24 board of review, board of appeals, or other county
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285285 1 official has made an error (other than an error of
286286 2 judgment as to the value of any mobile home),
287287 3 (5.5) the owner of the mobile home had tendered timely
288288 4 and full payment to the county collector that the owner
289289 5 reasonably believed was due and owing on the mobile home,
290290 6 and the county collector did not apply the payment to the
291291 7 mobile home; provided that this provision applies only to
292292 8 mobile home owners, not their agents or third-party
293293 9 payors,
294294 10 (6) prior to the tax sale a voluntary or involuntary
295295 11 petition has been filed by or against the legal or
296296 12 beneficial owner of the mobile home requesting relief
297297 13 under the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13,
298298 14 or
299299 15 (7) the mobile home is owned by the United States, the
300300 16 State of Illinois, a municipality, or a taxing district.
301301 17 (b) When, upon application of the owner of the certificate
302302 18 of purchase only, it appears to the satisfaction of the court
303303 19 that ordered the mobile home sold that any of the following
304304 20 subsections are applicable, the court shall declare the sale
305305 21 to be a sale in error:
306306 22 (1) A voluntary or involuntary petition under the
307307 23 provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
308308 24 filed subsequent to the tax sale and prior to the issuance
309309 25 of the tax certificate of title.
310310 26 (2) The mobile home sold has been substantially
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321321 1 destroyed or rendered uninhabitable or otherwise unfit for
322322 2 occupancy subsequent to the tax sale and prior to the
323323 3 issuance of the tax certificate of title.
324324 4 (c) When the county collector discovers, prior to the
325325 5 expiration of the period of redemption, that a tax sale should
326326 6 not have occurred for one or more of the reasons set forth in
327327 7 subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section,
328328 8 the county collector shall notify the last known owner of the
329329 9 certificate of purchase by certified and regular mail, or
330330 10 other means reasonably calculated to provide actual notice,
331331 11 that the county collector intends to declare an administrative
332332 12 sale in error and of the reasons therefor, including
333333 13 documentation sufficient to establish the reason why the sale
334334 14 should not have occurred. The owner of the certificate of
335335 15 purchase may object in writing within 28 days after the date of
336336 16 the mailing by the county collector. If an objection is filed,
337337 17 the county collector shall not administratively declare a sale
338338 18 in error, but may apply to the circuit court for a sale in
339339 19 error as provided in subsection (a) of this Section. Thirty
340340 20 days following the receipt of notice by the last known owner of
341341 21 the certificate of purchase, or within a reasonable time
342342 22 thereafter, the county collector shall make a written
343343 23 declaration, based upon clear and convincing evidence, that
344344 24 the taxes were sold in error and shall deliver a copy thereof
345345 25 to the county clerk within 30 days after the date the
346346 26 declaration is made for entry in the tax judgment, sale,
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357357 1 redemption, and forfeiture record pursuant to subsection (d)
358358 2 of this Section. The county collector shall promptly notify
359359 3 the last known owner of the certificate of purchase of the
360360 4 declaration by regular mail and shall promptly pay the amount
361361 5 of the tax sale, together with interest and costs as provided
362362 6 in Sections 260 through 280, upon surrender of the original
363363 7 certificate of purchase. If the owner of the certificate of
364364 8 purchase is the county as trustee for taxing districts, then,
365365 9 upon request of or consent by the county as trustee, the county
366366 10 collector may declare an administrative sale in error at any
367367 11 time and for any reason. The declaration shall state the
368368 12 reason why the sale should not have occurred.
369369 13 (d) If a sale is declared to be a sale in error, the county
370370 14 clerk shall make entry in the tax judgment, sale, redemption
371371 15 and forfeiture record, that the mobile home was erroneously
372372 16 sold, and the county collector shall, on demand of the owner of
373373 17 the certificate of purchase, refund the amount paid, pay any
374374 18 interest and costs as may be ordered under Sections 260
375375 19 through 280, and cancel the certificate so far as it relates to
376376 20 the mobile home. The county collector shall deduct from the
377377 21 accounts of the appropriate taxing bodies their pro rata
378378 22 amounts paid.
379379 23 (Source: P.A. 98-949, eff. 8-15-14.)
380380 24 Section 99. Effective date. This Act takes effect upon
381381 25 becoming law.
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