Illinois 2025-2026 Regular Session

Illinois House Bill HB3421 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3421 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED: 30 ILCS 105/5.1030 new35 ILCS 200/21-9035 ILCS 200/21-29535 ILCS 200/21-30535 ILCS 200/22-4035 ILCS 200/22-5535 ILCS 200/22-100 new35 ILCS 200/22-101 new Amends the Property Tax Code. Establishes an Equity Fund. Provides that moneys in the Equity Fund shall be expended exclusively for the purpose of paying the amount ordered for equity surplus payments to Illinois property owners who have lost their property by a recorded tax deed, except that, whenever the State Treasurer determines that any such moneys in the Equity Fund exceed the amount required for the purpose of paying equity surplus payments resulting from property ownership being divested by tax deed, the State Treasurer may transfer any such excess amounts from the Equity Fund to the General Revenue Fund. Provides for an irrevocable and continuing appropriation from Illinois tax lien purchasers for the purpose of paying equity surplus payments to the divested property upon the order of the State Treasurer and for the purpose of paying equity surplus to the divested property owner. In provisions concerning the indemnity fund, makes changes to the fees that are collected for tax sales in counties of 3,000,000 or more inhabitants. Sets forth an Equity Fund fee, calculation of the equity surplus, and an application process. Makes conforming and other changes. Amends the State Finance Act to make a conforming change. LRB104 11219 HLH 21301 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3421 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED: 30 ILCS 105/5.1030 new35 ILCS 200/21-9035 ILCS 200/21-29535 ILCS 200/21-30535 ILCS 200/22-4035 ILCS 200/22-5535 ILCS 200/22-100 new35 ILCS 200/22-101 new 30 ILCS 105/5.1030 new 35 ILCS 200/21-90 35 ILCS 200/21-295 35 ILCS 200/21-305 35 ILCS 200/22-40 35 ILCS 200/22-55 35 ILCS 200/22-100 new 35 ILCS 200/22-101 new Amends the Property Tax Code. Establishes an Equity Fund. Provides that moneys in the Equity Fund shall be expended exclusively for the purpose of paying the amount ordered for equity surplus payments to Illinois property owners who have lost their property by a recorded tax deed, except that, whenever the State Treasurer determines that any such moneys in the Equity Fund exceed the amount required for the purpose of paying equity surplus payments resulting from property ownership being divested by tax deed, the State Treasurer may transfer any such excess amounts from the Equity Fund to the General Revenue Fund. Provides for an irrevocable and continuing appropriation from Illinois tax lien purchasers for the purpose of paying equity surplus payments to the divested property upon the order of the State Treasurer and for the purpose of paying equity surplus to the divested property owner. In provisions concerning the indemnity fund, makes changes to the fees that are collected for tax sales in counties of 3,000,000 or more inhabitants. Sets forth an Equity Fund fee, calculation of the equity surplus, and an application process. Makes conforming and other changes. Amends the State Finance Act to make a conforming change. LRB104 11219 HLH 21301 b LRB104 11219 HLH 21301 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3421 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED:
3	3	30 ILCS 105/5.1030 new35 ILCS 200/21-9035 ILCS 200/21-29535 ILCS 200/21-30535 ILCS 200/22-4035 ILCS 200/22-5535 ILCS 200/22-100 new35 ILCS 200/22-101 new 30 ILCS 105/5.1030 new 35 ILCS 200/21-90 35 ILCS 200/21-295 35 ILCS 200/21-305 35 ILCS 200/22-40 35 ILCS 200/22-55 35 ILCS 200/22-100 new 35 ILCS 200/22-101 new
4	4	30 ILCS 105/5.1030 new
5	5	35 ILCS 200/21-90
6	6	35 ILCS 200/21-295
7	7	35 ILCS 200/21-305
8	8	35 ILCS 200/22-40
9	9	35 ILCS 200/22-55
10	10	35 ILCS 200/22-100 new
11	11	35 ILCS 200/22-101 new
12	12	Amends the Property Tax Code. Establishes an Equity Fund. Provides that moneys in the Equity Fund shall be expended exclusively for the purpose of paying the amount ordered for equity surplus payments to Illinois property owners who have lost their property by a recorded tax deed, except that, whenever the State Treasurer determines that any such moneys in the Equity Fund exceed the amount required for the purpose of paying equity surplus payments resulting from property ownership being divested by tax deed, the State Treasurer may transfer any such excess amounts from the Equity Fund to the General Revenue Fund. Provides for an irrevocable and continuing appropriation from Illinois tax lien purchasers for the purpose of paying equity surplus payments to the divested property upon the order of the State Treasurer and for the purpose of paying equity surplus to the divested property owner. In provisions concerning the indemnity fund, makes changes to the fees that are collected for tax sales in counties of 3,000,000 or more inhabitants. Sets forth an Equity Fund fee, calculation of the equity surplus, and an application process. Makes conforming and other changes. Amends the State Finance Act to make a conforming change.
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15	15	A BILL FOR
16	16	HB3421LRB104 11219 HLH 21301 b HB3421 LRB104 11219 HLH 21301 b
17	17	HB3421 LRB104 11219 HLH 21301 b
18	18	1 AN ACT concerning revenue.
19	19	2 Be it enacted by the People of the State of Illinois,
20	20	3 represented in the General Assembly:
21	21	4 Section 3. The State Finance Act is amended by adding
22	22	5 Section 5.1030 as follows:
23	23	6 (30 ILCS 105/5.1030 new)
24	24	7 Sec. 5.1030. The Equity Fund.
25	25	8 Section 5. The Property Tax Code is amended by changing
26	26	9 Sections 21-90, 21-295, 21-305, 22-40, and 22-55 and by adding
27	27	10 Sections 22-100 and 22-101 as follows:
28	28	11 (35 ILCS 200/21-90)
29	29	12 Sec. 21-90. Purchase and sale by county; distribution of
30	30	13 proceeds.
31	31	14 (a) When any property is offered for sale under any of the
32	32	15 provisions of this Code, the county board of the county in
33	33	16 which the property is located, in its discretion, may bid, or,
34	34	17 in the case of forfeited property, may apply to purchase it or
35	35	18 otherwise acquire the tax lien or certificate in the name of
36	36	19 the county as trustee for all taxing districts having an
37	37	20 interest in the property's taxes or special assessments for
38	38	21 the nonpayment of which the property is sold. The presiding
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42	42	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3421 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED:
43	43	30 ILCS 105/5.1030 new35 ILCS 200/21-9035 ILCS 200/21-29535 ILCS 200/21-30535 ILCS 200/22-4035 ILCS 200/22-5535 ILCS 200/22-100 new35 ILCS 200/22-101 new 30 ILCS 105/5.1030 new 35 ILCS 200/21-90 35 ILCS 200/21-295 35 ILCS 200/21-305 35 ILCS 200/22-40 35 ILCS 200/22-55 35 ILCS 200/22-100 new 35 ILCS 200/22-101 new
44	44	30 ILCS 105/5.1030 new
45	45	35 ILCS 200/21-90
46	46	35 ILCS 200/21-295
47	47	35 ILCS 200/21-305
48	48	35 ILCS 200/22-40
49	49	35 ILCS 200/22-55
50	50	35 ILCS 200/22-100 new
51	51	35 ILCS 200/22-101 new
52	52	Amends the Property Tax Code. Establishes an Equity Fund. Provides that moneys in the Equity Fund shall be expended exclusively for the purpose of paying the amount ordered for equity surplus payments to Illinois property owners who have lost their property by a recorded tax deed, except that, whenever the State Treasurer determines that any such moneys in the Equity Fund exceed the amount required for the purpose of paying equity surplus payments resulting from property ownership being divested by tax deed, the State Treasurer may transfer any such excess amounts from the Equity Fund to the General Revenue Fund. Provides for an irrevocable and continuing appropriation from Illinois tax lien purchasers for the purpose of paying equity surplus payments to the divested property upon the order of the State Treasurer and for the purpose of paying equity surplus to the divested property owner. In provisions concerning the indemnity fund, makes changes to the fees that are collected for tax sales in counties of 3,000,000 or more inhabitants. Sets forth an Equity Fund fee, calculation of the equity surplus, and an application process. Makes conforming and other changes. Amends the State Finance Act to make a conforming change.
53	53	LRB104 11219 HLH 21301 b LRB104 11219 HLH 21301 b
54	54	LRB104 11219 HLH 21301 b
55	55	A BILL FOR
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61	61	30 ILCS 105/5.1030 new
62	62	35 ILCS 200/21-90
63	63	35 ILCS 200/21-295
64	64	35 ILCS 200/21-305
65	65	35 ILCS 200/22-40
66	66	35 ILCS 200/22-55
67	67	35 ILCS 200/22-100 new
68	68	35 ILCS 200/22-101 new
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87	87	1 officer of the county board, with the advice and consent of the
88	88	2 board, may appoint on its behalf some officer, person, or
89	89	3 entity to attend such sales, bid on tax liens or certificates,
90	90	4 and act on behalf of the county when exercising its authority
91	91	5 under this Section. The county shall apply on the bid or
92	92	6 purchase the unpaid taxes and special assessments due upon the
93	93	7 property. No cash need be paid.
94	94	8 (b) The county, as trustee for all taxing districts having
95	95	9 an interest in the property's taxes or special assessments,
96	96	10 shall be the designated holder of all tax liens or
97	97	11 certificates that are forfeited to the State or county. No
98	98	12 cash need be paid for the unpaid taxes and special assessments
99	99	13 due on the property. All fees due under Section 21-295 shall be
100	100	14 paid pursuant to that Section forfeited tax lien or
101	101	15 certificate.
102	102	16 (c) For any tax lien or certificate acquired under
103	103	17 subsection (a) or (b) of this Section, the county may take
104	104	18 steps necessary to acquire title to the property and may
105	105	19 manage and operate the property, including, but not limited
106	106	20 to, mowing of grass, removal of nuisance greenery, removal of
107	107	21 garbage, waste, debris or other materials, or the demolition,
108	108	22 repair, or remediation of unsafe structures. When a county, or
109	109	23 other taxing district within the county, is a petitioner for a
110	110	24 tax deed, no filing fee shall be required. When a county or
111	111	25 other taxing district within the county is the petitioner for
112	112	26 a tax deed, one petition may be filed including all parcels
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123	123	1 that are tax delinquent within the county or taxing district,
124	124	2 and any publication made under Section 22-20 of this Code may
125	125	3 combine all such parcels within a single notice. The notice
126	126	4 may include the street address as listed on the most recent
127	127	5 available tax bills, if available, and shall list the Property
128	128	6 Index Number of the parcels for informational purposes. The
129	129	7 county, as tax creditor and as trustee for other tax
130	130	8 creditors, or other taxing district within the county, shall
131	131	9 not be required to allege and prove that all taxes and special
132	132	10 assessments which become due and payable after the sale or
133	133	11 forfeiture to the county have been paid nor shall the county be
134	134	12 required to pay the subsequently accruing taxes or special
135	135	13 assessments at any time. The county board or its designee may
136	136	14 prohibit the county collector from including the property in
137	137	15 the tax sale of one or more subsequent years. The lien of taxes
138	138	16 and special assessments which become due and payable after a
139	139	17 sale to a county shall merge in the fee title of the county, or
140	140	18 other taxing district within the county, on the issuance of a
141	141	19 deed.
142	142	20 The county may sell any property acquired with authority
143	143	21 provided in this Section, or assign any tax certificate to any
144	144	22 party, including, but not limited to, taxing districts,
145	145	23 municipalities, land banks created pursuant to Illinois law,
146	146	24 or non-profit developers focused on constructing affordable
147	147	25 housing, subject to Sections 21-295 through 21-305.
148	148	26 The assigned tax certificate shall be void with no further
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159	159	1 rights given to the assignee, including no right to refund or
160	160	2 reimbursement, if a tax deed has not been recorded within 4
161	161	3 years after the date of the assignment unless a court extends
162	162	4 the assignment period as provided in this Section. Upon a
163	163	5 motion by the assignee, a court may toll the 4-year deadline
164	164	6 for a specified period of time if the court finds the assignee
165	165	7 is prevented from obtaining or recording a deed by injunction
166	166	8 or order of any court, by the refusal or inability of any court
167	167	9 to act upon the application for a tax deed, by a municipality's
168	168	10 refusal to issue necessary transfer stamps or approvals for
169	169	11 recording, or by the refusal of the clerk to execute the deed.
170	170	12 If an assigned tax certificate is void under this Section, it
171	171	13 shall be forfeited to the county and held as a valid
172	172	14 certificate of sale in the county's name pursuant to this
173	173	15 Section 21-90. The proceeds of any sale or assignment under
174	174	16 this Section, less all costs of the county incurred in the
175	175	17 acquisition, operation, maintenance, and sale of the property
176	176	18 or assignment of the tax certificate, including all costs
177	177	19 associated with county staff and overhead used to perform the
178	178	20 duties of the trustee set forth in this Section, shall be
179	179	21 distributed to the taxing districts in proportion to their
180	180	22 respective interests therein.
181	181	23 Under Sections 21-110, 21-115, 21-120, and 21-190, a
182	182	24 county may bid or purchase only in the absence of other
183	183	25 bidders.
184	184	26 (Source: P.A. 102-363, eff. 1-1-22; 103-555, eff. 1-1-24.)
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195	195	1 (35 ILCS 200/21-295)
196	196	2 Sec. 21-295. Creation of indemnity fund.
197	197	3 (a) In counties of less than 3,000,000 inhabitants, each
198	198	4 person purchasing any property at a sale under this Code shall
199	199	5 pay to the County Collector, prior to the issuance of any
200	200	6 certificate of purchase, an indemnity fee set by the county
201	201	7 collector of not more than $20 for each item purchased. A like
202	202	8 sum shall be paid for each year that all or a portion of
203	203	9 subsequent taxes are paid by the tax purchaser and posted to
204	204	10 the tax judgment, sale, redemption and forfeiture record where
205	205	11 the underlying certificate of purchase is recorded.
206	206	12 (a-5) In counties of 3,000,000 or more inhabitants, each
207	207	13 person purchasing property at a sale under this Code shall pay
208	208	14 to the County Collector a nonrefundable fee of $200 $80 for
209	209	15 each item purchased plus an additional nonrefundable fee sum
210	210	16 equal to 3% 5% of the taxes, interest, and penalties paid under
211	211	17 Section 21-240. In these counties, the certificate holder
212	212	18 shall also pay to the County Collector a fee of $150 $80 for
213	213	19 each year that all or a portion of subsequent taxes are paid by
214	214	20 the tax purchaser and posted to the tax judgment, sale,
215	215	21 redemption, and forfeiture record. The changes to this
216	216	22 subsection made by this amendatory Act of the 91st General
217	217	23 Assembly are not a new enactment, but declaratory of existing
218	218	24 law.
219	219	25 (b) The amount paid prior to issuance of the certificate
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230	230	1 of purchase pursuant to subsection (a) or (a-5) shall be
231	231	2 included in the purchase price of the property in the
232	232	3 certificate of purchase and all amounts paid under this
233	233	4 Section shall be included in the amount required to redeem
234	234	5 under Section 21-355, except for any the nonrefundable $80 fee
235	235	6 for each item purchased at the tax sale as provided in this
236	236	7 Section. Except as otherwise provided in subsection (b) of
237	237	8 Section 21-300, all nonrefundable fees money received under
238	238	9 subsection (a) or (a-5) shall be paid by the Collector to the
239	239	10 County Treasurer of the County in which the land is situated,
240	240	11 for the purpose of an indemnity fund. The County Treasurer, as
241	241	12 trustee of that fund, shall invest all of that fund, principal
242	242	13 and income, in his or her hands from time to time, if not
243	243	14 immediately required for payments of indemnities under
244	244	15 subsection (a) of Section 21-305, in investments permitted by
245	245	16 the Illinois State Board of Investment under Article 22A of
246	246	17 the Illinois Pension Code. The county collector shall report
247	247	18 annually to the county clerk on the condition and income of the
248	248	19 fund. The indemnity fund shall be held to satisfy judgments
249	249	20 obtained against the County Treasurer, as trustee of the fund.
250	250	21 No payment shall be made from the fund, except upon a judgment
251	251	22 of the court which ordered the issuance of a tax deed.
252	252	23 (Source: P.A. 100-1070, eff. 1-1-19; 101-659, eff. 3-23-21.)
253	253	24 (35 ILCS 200/21-305)
254	254	25 Sec. 21-305. Payments from Indemnity Fund.
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265	265	1 (a) Any owner of property sold under any provision of this
266	266	2 Code who sustains loss or damage by reason of the issuance of a
267	267	3 tax deed under Section 21-445 or 22-40 and who is barred or is
268	268	4 in any way precluded from bringing an action for the recovery
269	269	5 of the property shall have the right to indemnity for the loss
270	270	6 or damage sustained, limited as follows:
271	271	7 (1) An owner who resided on property that contained 4
272	272	8 or less dwelling units on the last day of the period of
273	273	9 redemption and who is equitably entitled to compensation
274	274	10 for the loss or damage sustained has the right to
275	275	11 indemnity. An equitable indemnity award shall be limited
276	276	12 to the fair cash value of the property as of the date the
277	277	13 tax deed was issued less any mortgages or liens on the
278	278	14 property, and the award will not exceed $99,000. The Court
279	279	15 shall liberally construe this equitable entitlement
280	280	16 standard to provide compensation wherever, in the
281	281	17 discretion of the Court, the equities warrant the action.
282	282	18 An owner of a property that contained 4 or less
283	283	19 dwelling units who requests an award in excess of $99,000
284	284	20 must prove that the loss of his or her property was not
285	285	21 attributable to his or her own fault or negligence before
286	286	22 an award in excess of $99,000 will be granted.
287	287	23 (2) An owner who sustains the loss or damage of any
288	288	24 property occasioned by reason of the issuance of a tax
289	289	25 deed, without fault or negligence of his or her own, has
290	290	26 the right to indemnity limited to the fair cash value of
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301	301	1 the property less any mortgages or liens on the property.
302	302	2 In determining the existence of fault or negligence, the
303	303	3 court shall consider whether the owner exercised ordinary
304	304	4 reasonable diligence under all of the relevant
305	305	5 circumstances.
306	306	6 (3) In determining the fair cash value of property
307	307	7 less any mortgages or liens on the property, the fair cash
308	308	8 value shall be reduced by the principal amount of all
309	309	9 taxes paid by the tax purchaser or his or her assignee
310	310	10 before the issuance of the tax deed.
311	311	11 (4) If an award made under paragraph (1) or (2) is
312	312	12 subject to a reduction by the amount of an outstanding
313	313	13 mortgage or lien on the property, other than the principal
314	314	14 amount of all taxes paid by the tax purchaser or his or her
315	315	15 assignee before the issuance of the tax deed and the
316	316	16 petitioner would be personally liable to the mortgagee or
317	317	17 lienholder for all or part of that reduction amount, the
318	318	18 court shall order an additional indemnity award to be paid
319	319	19 directly to the mortgagee or lienholder sufficient to
320	320	20 discharge the petitioner's personal liability. The court,
321	321	21 in its discretion, may order the joinder of the mortgagee
322	322	22 or lienholder as an additional party to the indemnity
323	323	23 action.
324	324	24 (b) Indemnity fund; subrogation.
325	325	25 (1) Any person claiming indemnity hereunder shall
326	326	26 petition the Court which ordered the tax deed to issue,
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337	337	1 shall name the County Treasurer, as Trustee of the
338	338	2 indemnity fund, as defendant to the petition, and shall
339	339	3 ask that judgment be entered against the County Treasurer,
340	340	4 as Trustee, in the amount of the indemnity sought. The
341	341	5 provisions of the Civil Practice Law shall apply to
342	342	6 proceedings under the petition, except that neither the
343	343	7 petitioner nor County Treasurer shall be entitled to trial
344	344	8 by jury on the issues presented in the petition. The Court
345	345	9 shall liberally construe this Section to provide
346	346	10 compensation wherever in the discretion of the Court the
347	347	11 equities warrant such action.
348	348	12 (2) The County Treasurer, as Trustee of the indemnity
349	349	13 fund, shall be subrogated to all parties in whose favor
350	350	14 judgment may be rendered against him or her, and by third
351	351	15 party complaint may bring in as a defendant any person,
352	352	16 other than the tax deed grantee and its successors in
353	353	17 title, not a party to the action who is or may be liable to
354	354	18 him or her, as subrogee, for all or part of the
355	355	19 petitioner's claim against him or her.
356	356	20 (c) Any contract involving the proceeds of a judgment for
357	357	21 indemnity under this Section, between the tax deed grantee or
358	358	22 its successors in title and the indemnity petitioner or his or
359	359	23 her successors, shall be in writing. In any action brought
360	360	24 under Section 21-305, the Collector shall be entitled to
361	361	25 discovery regarding, but not limited to, the following:
362	362	26 (1) the identity of all persons beneficially
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373	373	1 interested in the contract, directly or indirectly,
374	374	2 including at least the following information: the names
375	375	3 and addresses of any natural persons; the place of
376	376	4 incorporation of any corporation and the names and
377	377	5 addresses of its shareholders unless it is publicly held;
378	378	6 the names and addresses of all general and limited
379	379	7 partners of any partnership; the names and addresses of
380	380	8 all persons having an ownership interest in any entity
381	381	9 doing business under an assumed name, and the county in
382	382	10 which the assumed business name is registered; and the
383	383	11 nature and extent of the interest in the contract of each
384	384	12 person identified;
385	385	13 (2) the time period during which the contract was
386	386	14 negotiated and agreed upon, from the date of the first
387	387	15 direct or indirect contact between any of the contracting
388	388	16 parties to the date of its execution;
389	389	17 (3) the name and address of each natural person who
390	390	18 took part in negotiating the contract, and the identity
391	391	19 and relationship of the party that the person represented
392	392	20 in the negotiations; and
393	393	21 (4) the existence of an agreement for payment of
394	394	22 attorney's fees by or on behalf of each party.
395	395	23 Any information disclosed during discovery may be subject
396	396	24 to protective order as deemed appropriate by the court. The
397	397	25 terms of the contract shall not be used as evidence of value.
398	398	26 (d) A petition of indemnity under this Section must be
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409	409	1 filed within 10 years after the date the tax deed was issued.
410	410	2 (e) No payment from the indemnity fund shall be made if an
411	411	3 application for Equity Fund Payment is filed or pending in any
412	412	4 county of this State.
413	413	5 (Source: P.A. 97-557, eff. 7-1-12.)
414	414	6 (35 ILCS 200/22-40)
415	415	7 Sec. 22-40. Issuance of deed; possession.
416	416	8 (a) To obtain an order for issuance of tax deed, the
417	417	9 petitioner must provide sufficient evidence that:
418	418	10 (1) the redemption period has expired and the property
419	419	11 has not been redeemed;
420	420	12 (2) all taxes and special assessments which became due
421	421	13 and payable subsequent to the sale have been paid, unless
422	422	14 the county or its agent, as trustee pursuant to Section
423	423	15 21-90, is the petitioner;
424	424	16 (3) all forfeitures and sales which occur subsequent
425	425	17 to the sale are paid or redeemed, unless the county or its
426	426	18 agent, as trustee pursuant to Section 21-90, is the
427	427	19 petitioner;
428	428	20 (4) the notices required by law have been given, and
429	429	21 all advancements of public funds under the police power
430	430	22 made by a county, city, village, or town under Section
431	431	23 22-35 have been paid; and
432	432	24 (5) the petitioner has complied with all the
433	433	25 provisions of law entitling him or her to a deed.
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444	444	1 Upon receipt of sufficient evidence of the requirements
445	445	2 under this subsection (a), the court shall find that the
446	446	3 petitioner complied with those requirements and shall enter an
447	447	4 order directing the county clerk, on the production of the tax
448	448	5 certificate and a certified copy of the order, to issue to the
449	449	6 purchaser or its assignee a tax deed. The court shall insist on
450	450	7 strict compliance with Section 22-10 through 22-25. Prior to
451	451	8 the entry of an order directing the issuance of a tax deed, the
452	452	9 petitioner shall furnish the court with a report of
453	453	10 proceedings of the evidence received on the application for
454	454	11 tax deed and the report of proceedings shall be filed and made
455	455	12 a part of the court record.
456	456	13 (b) Except as provided in subsection (e), if taxes for
457	457	14 years prior to the year or years sold are or become delinquent
458	458	15 subsequent to the date of sale, the court shall find that the
459	459	16 lien of those delinquent taxes has been or will be merged into
460	460	17 the tax deed grantee's title if the court determines that the
461	461	18 tax deed grantee or any prior holder of the certificate of
462	462	19 purchase, or any person or entity under common ownership or
463	463	20 control with any such grantee or prior holder of the
464	464	21 certificate of purchase, was at no time the holder of any
465	465	22 certificate of purchase for the years sought to be merged. If
466	466	23 delinquent taxes are merged into the tax deed pursuant to this
467	467	24 subsection, the court shall enter an order declaring which
468	468	25 specific taxes have been or will be merged into the tax deed
469	469	26 title and directing the county treasurer and county clerk to
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480	480	1 reflect that declaration in the warrant and judgment records;
481	481	2 provided, that no such order shall be effective until a tax
482	482	3 deed has been issued and timely recorded. Nothing contained in
483	483	4 this Section shall relieve any owner liable for delinquent
484	484	5 property taxes under this Code from the payment of the taxes
485	485	6 that have been merged into the title upon issuance of the tax
486	486	7 deed.
487	487	8 (c) The county clerk is entitled to a fee of $10 in
488	488	9 counties of 3,000,000 or more inhabitants and $5 in counties
489	489	10 with less than 3,000,000 inhabitants for the issuance of the
490	490	11 tax deed, with the exception of deeds issued to the county
491	491	12 pursuant to its authority under Section 21-90. The clerk may
492	492	13 not include in a tax deed more than one property as listed,
493	493	14 assessed and sold in one description, except in cases where
494	494	15 several properties are owned by one person.
495	495	16 Upon application, the court shall, enter an order to place
496	496	17 the tax deed grantee or the grantee's successor in interest in
497	497	18 possession of the property and may enter orders and grant
498	498	19 relief as may be necessary or desirable to maintain the
499	499	20 grantee or the grantee's successor in interest in possession.
500	500	21 (d) The court shall retain jurisdiction to enter orders
501	501	22 pursuant to subsections (b) and (c) of this Section and
502	502	23 pursuant to Sections 22-100 and 22-101. Public Act 92-223 and
503	503	24 Public Act 95-477 . This amendatory Act of the 92nd General
504	504	25 Assembly and this amendatory Act of the 95th General Assembly
505	505	26 shall be construed as being declarative of existing law and
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516	516	1 not as a new enactment.
517	517	2 (e) Prior to the issuance of any tax deed under this
518	518	3 Section, the petitioner must redeem all taxes and special
519	519	4 assessments on the property that are subject to a pending tax
520	520	5 petition filed by a county or its assignee pursuant to Section
521	521	6 21-90.
522	522	7 (f) If, for any reason, a purchaser fails to obtain an
523	523	8 order for tax deed within the required time period and no sale
524	524	9 in error was granted or redemption paid, then the certificate
525	525	10 shall be forfeited to the county, as trustee, pursuant to
526	526	11 Section 21-90.
527	527	12 (Source: P.A. 103-555, eff. 1-1-24; revised 8-5-24.)
528	528	13 (35 ILCS 200/22-55)
529	529	14 Sec. 22-55. Tax deeds to convey merchantable title. This
530	530	15 Section shall be liberally construed so that tax deeds shall
531	531	16 convey merchantable title. In the event the property has been
532	532	17 taken by eminent domain under the Eminent Domain Act, the tax
533	533	18 purchaser shall be entitled to the award which is the
534	534	19 substitute for the property. Tax deeds issued pursuant to this
535	535	20 Section are subject to Section 22-70. Nothing in Section
536	536	21 22-100 or Section 22-101 shall affect the merchantable title
537	537	22 conveyed upon the recording of the tax deed. This amendatory
538	538	23 Act of the 104th General Assembly shall be construed as being
539	539	24 declarative of existing law and not as a new enactment.
540	540	25 (Source: P.A. 94-1055, eff. 1-1-07.)
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551	551	1 (35 ILCS 200/22-100 new)
552	552	2 Sec. 22-100. Equity Fund collection.
553	553	3 (a) Each county treasurer shall transmit to the State
554	554	4 Treasurer all Equity Fund payments paid to the county
555	555	5 treasurer under this Section and in the county treasurer's
556	556	6 possession after each tax sale, with a report under oath
557	557	7 identifying the total amount of certificates of purchase sold
558	558	8 and the amount collected for the Equity Fund from each
559	559	9 certificate. Those amounts and the report shall be transmitted
560	560	10 to and received by the State Treasurer by the 10th day after
561	561	11 each tax sale. At the same time, a copy of the report shall be
562	562	12 furnished to the Attorney General. The report shall be in a
563	563	13 form and contain the particulars as the State Treasurer may
564	564	14 prescribe. The State Treasurer shall give the county treasurer
565	565	15 a receipt for the amount transmitted to the State Treasurer.
566	566	16 Except as otherwise provided in this Section, if any county
567	567	17 treasurer fails to pay to the State Treasurer all amounts that
568	568	18 may be due and payable under this Section as required by this
569	569	19 Section, the county treasurer shall pay to the State
570	570	20 Treasurer, as a penalty, a sum of money equal to the interest
571	571	21 on the amounts not paid at the rate of 1% per month from the
572	572	22 time those amounts are due by the county treasurer until those
573	573	23 amounts are paid. The sureties upon the official bond of the
574	574	24 county treasurer shall be security for the payment of the
575	575	25 penalty. The penalty under this Section may be recovered in a
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586	586	1 civil action against the county treasurer and his or her
587	587	2 sureties, in the name of the People of the State of Illinois,
588	588	3 in the circuit court within the county wherein the county
589	589	4 treasurer is resident; and the penalty, when recovered, shall
590	590	5 be paid into the State treasury. The civil action to recover
591	591	6 the penalty shall be brought by the State Treasurer within 10
592	592	7 days after the failure of the county treasurer to pay to the
593	593	8 State Treasurer any amounts collected by the county treasurer
594	594	9 within the time required by this Section. Failure to bring the
595	595	10 action within that time shall not prevent the bringing of the
596	596	11 action thereafter. It is the duty of the State Treasurer to
597	597	12 make necessary and proper investigation to determine what
598	598	13 amounts should be paid under this Section.
599	599	14 The State Treasurer may waive penalties imposed by
600	600	15 subsection (a) of this Section on a case-by-case basis if the
601	601	16 State Treasurer finds that imposing penalties would be
602	602	17 unreasonable or unnecessarily burdensome because the delay in
603	603	18 payment was due to an incident caused by the operation of an
604	604	19 extraordinary force, including, but not limited to, the
605	605	20 occurrence of a natural disaster, that cannot be foreseen,
606	606	21 that cannot be avoided by the exercise of due care, and for
607	607	22 which no person can be held liable.
608	608	23 The total amount collected from the county treasurers
609	609	24 shall be deposited into the Equity Fund, a special fund
610	610	25 created in the State treasury.
611	611	26 Moneys in the Equity Fund shall be expended exclusively
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622	622	1 for the purpose of paying the amount ordered for equity
623	623	2 surplus payments to Illinois property owners who have lost
624	624	3 their property by a recorded tax deed, except that, whenever
625	625	4 the State Treasurer determines that any such moneys in the
626	626	5 Equity Fund exceed the amount required for the purpose of
627	627	6 paying equity surplus payments resulting from property
628	628	7 ownership being divested by tax deed, the State Treasurer may
629	629	8 transfer any such excess amounts from the Equity Fund to the
630	630	9 General Revenue Fund.
631	631	10 The State Treasurer shall order payment of refunds
632	632	11 resulting from orders entered on timely applications as
633	633	12 provided in this Section from the Equity Fund only to the
634	634	13 extent that amounts have been deposited and retained in the
635	635	14 Fund.
636	636	15 This Section shall constitute an irrevocable and
637	637	16 continuing appropriation from Illinois tax lien purchasers for
638	638	17 the purpose of paying equity surplus payments to the divested
639	639	18 property upon the order of the State Treasurer in accordance
640	640	19 with the provisions of this Section and for the purpose of
641	641	20 paying equity surplus to the divested property owner as
642	642	21 required by the constitution and law.
643	643	22 (b) In counties of less than 3,000,000 inhabitants, each
644	644	23 person purchasing any property at a sale under this Code shall
645	645	24 pay to the county collector a nonrefundable Equity Fund fee of
646	646	25 $150, prior to the issuance of any certificate of purchase and
647	647	26 for each item purchased under Section 21-240. A like sum shall
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658	658	1 be paid for each year that all or a portion of subsequent taxes
659	659	2 are paid by the tax purchaser and posted to the tax judgment,
660	660	3 sale, redemption and forfeiture record where the underlying
661	661	4 certificate of purchase is recorded. The $150 fee per
662	662	5 certificate shall be paid by all certificate holders including
663	663	6 all trustees and governmental agencies holding certificates
664	664	7 under Section 21-90.
665	665	8 (c) In counties of 3,000,000 or more inhabitants, each
666	666	9 person purchasing property at a sale under this Code shall pay
667	667	10 to the county collector a nonrefundable Equity Fund fee of
668	668	11 $250 prior to the issuance of any certificate of purchase and
669	669	12 for each item purchased under Section 21-240. In these
670	670	13 counties, the certificate holder shall also pay to the county
671	671	14 collector a fee of $200 for each year that all or a portion of
672	672	15 subsequent taxes are paid by the tax purchaser and posted to
673	673	16 the tax judgment, sale, redemption, and forfeiture record. The
674	674	17 $250 fee per certificate shall be paid by all certificate
675	675	18 holders including all trustees and governmental agencies
676	676	19 holding certificates under Section 21-90.
677	677	20 (d) The Equity Fund fees collected under subsections (b)
678	678	21 and (c) shall be collected, disbursed and accounted for as set
679	679	22 forth in subsection (a).
680	680	23 (35 ILCS 200/22-101 new)
681	681	24 Sec. 22-101. Application for Equity Fund Payment.
682	682	25 (a) No payment shall be made from the Equity Fund, except
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693	693	1 upon a judgment on the application to the Equity Fund.
694	694	2 Applications for Equity Fund payments shall be made to the
695	695	3 county treasurer in which the property is situated in the
696	696	4 following form, completely filled in and submitted to the
697	697	5 applicable county treasurer on or before one year after the
698	698	6 tax deed is recorded, along with a nonrefundable application
699	699	7 fee as designated by the applicable county treasurer:
700	700	8 APPLICATION FOR EQUITY FUND PAYMENT
701	701	9 Name.....................................................
702	702	10 Address..................................................
703	703	11 City State Zip...........................................
704	704	12 Telephone No.............................................
705	705	13 Email Address............................................
706	706	14 Date of Application......................................
707	707	15 I, ....... , owned or possessed ownership interest in the
708	708	16 property commonly known as........., identified by
709	709	17 parcel/property index number ......... until a tax deed was
710	710	18 recorded on ......... in ........ County, Illinois. A copy of
711	711	19 the ownership deed and tax deed are attached to this
712	712	20 application.
713	713	21 ....... (initial here) I agree to the County Assessor's
714	714	22 determination of the estimated fair market value for the year
715	715	23 in which the tax deed was recorded.
716	716	24 ....... (initial here) I do not agree to the County
717	717	25 Assessor's determination of the estimated fair market value
718	718	26 for the year in which the tax deed was recorded and have
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729	729	1 provided a certified appraisal from an Illinois licensed
730	730	2 appraiser stating the fair market value of the property lost
731	731	3 to tax deed is $.... as of the date the tax deed was recorded.
732	732	4 Under penalties as provided by law pursuant to Section 1-109
733	733	5 of the Code of Civil Procedure, the undersigned certifies that
734	734	6 the statements in this instrument are true and correct.
735	735	7 (b) Upon receipt of the application, the county collector,
736	736	8 through the state's attorney's office shall review the
737	737	9 application and request any additional document necessary.
738	738	10 Upon review of the application, and if approved, the county
739	739	11 collector shall file a Petition for Equity Surplus in the
740	740	12 court entering the order directing the issuance of tax deed.
741	741	13 The court shall order the payment and determine the amount and
742	742	14 enter an order directing the State Treasurer to pay the amount
743	743	15 determined to the Equity Fund applicant from the Equity Fund.
744	744	16 (c) The county shall be allowed to pass an ordinance to
745	745	17 charge an application fee of up to $500 per application for
746	746	18 payment from the Tax Deed Equity Surplus Fund.
747	747	19 (d) The amount of the equity surplus shall be calculated
748	748	20 by the amount of the fair market value of the property at the
749	749	21 time of loss, less:
750	750	22 (1) the lien for taxes, including all statutory fees
751	751	23 and costs posted to the tax sale paid by the grantee; and
752	752	24 (2) any taxes paid subsequent to the last day to
753	753	25 redeem but prior to entry of the order directing the
754	754	26 county clerk to issue a tax deed.
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