Bill Text: IL HB3028 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB3028 Detail]

Download: Illinois-2023-HB3028-Introduced.html

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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.
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A BILL FOR
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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, 22-40, and 22-85 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, or an owner of a
certificate of purchase whose lien is subject to prior tax
years sold subsequent to its purchase as set forth in
subsection (b) of Section 22-40, 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,

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(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

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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

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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. If the court declares a sale in
error under this paragraph (4), 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 (4) 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.
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

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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

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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, except for
the nonrefundable $80 fee paid, pursuant to Section 21-295,
for each item purchased at the tax sale, 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) or (b)(4), 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. 100-890, eff. 1-1-19; 101-379, eff. 1-1-20;
101-659, eff. 3-23-21.)
(35 ILCS 200/22-40)
Sec. 22-40. Issuance of deed; possession.

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(a) The court If the redemption period expires and the
property has not been redeemed and all taxes and special
assessments which became due and payable subsequent to the
sale have been paid and all forfeitures and sales which occur
subsequent to the sale have been redeemed and the notices
required by law have been given and all advancements of public
funds under the police power made by a county, city, village or
town under Section 22-35 have been paid and the petitioner has
complied with all the provisions of law entitling him or her to
a deed, the court shall so find and shall enter an order
directing the county clerk, on the production of the
certificate of purchase and a certified copy of the order, to
issue to the purchaser or his or her assignee a tax deed if the
court finds all of the following: .
(1) that the redemption period has expired and the
property has not been redeemed;
(2) that all taxes and special assessments on the
property that became due and payable after the tax sale at
which the certificate of purchase was issued have been
paid;
(3) that all forfeitures and sales of the property
that occur after the tax sale at which the certificate of
purchase was issued and include only subsequent years
taxes have been redeemed;
(4) that the notices required by law have been given;
(5) that all advancements of public funds under the

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police power made by a county, city, village or town under
Section 22-35 have been paid; and
(6) that the petitioner has complied with all the
provisions of law entitling him or her to a deed.
The court shall insist on strict compliance with Section
22-10 through 22-25. Prior to the entry of an order directing
the issuance of a tax deed, the petitioner shall furnish the
court with a report of proceedings of the evidence received on
the application for tax deed and the report of proceedings
shall be filed and made a part of the court record.
(b) If taxes for years prior to the year or years sold are
or become delinquent subsequent to the date of sale, the court
shall find that the lien of those delinquent taxes has been or
will be merged into the tax deed grantee's title if the court
determines that the tax deed grantee or any prior holder of the
certificate of purchase, or any person or entity under common
ownership or control with any such grantee or prior holder of
the certificate of purchase, was at no time the holder of any
certificate of purchase for the years sought to be merged. 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
both tax years that are prior to the year or years sold and tax
years that are after the year or years sold, shall be declared
a sale in error, and those tax years that are included in the
subsequent sale and are prior to the year or years sold shall

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be merged into the tax deed grantee's title if the court
determines that the tax deed grantee or any prior holder of the
certificate of purchase, or any person or entity under common
ownership or control with any such grantee or prior holder of
the certificate of purchase, was at no time the holder of any
certificate of purchase for the years sought to be merged. If
delinquent taxes are merged into the tax deed pursuant to this
subsection, the court shall enter an order declaring which
specific taxes have been or will be merged into the tax deed
title and directing the county treasurer and county clerk to
reflect that declaration in the warrant and judgment records;
provided, that no such order shall be effective until a tax
deed has been issued and timely recorded. Nothing contained in
this Section shall relieve any owner liable for delinquent
property taxes under this Code from the payment of the taxes
that have been merged into the title upon issuance of the tax
deed.
(c) The county clerk is entitled to a fee of $10 in
counties of 3,000,000 or more inhabitants and $5 in counties
with less than 3,000,000 inhabitants for the issuance of the
tax deed. The clerk may not include in a tax deed more than one
property as listed, assessed and sold in one description,
except in cases where several properties are owned by one
person.
Upon application the court shall, enter an order to place
the tax deed grantee or the grantee's successor in interest in

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possession of the property and may enter orders and grant
relief as may be necessary or desirable to maintain the
grantee or the grantee's successor in interest in possession.
(d) The court shall retain jurisdiction to enter orders
pursuant to subsections (b) and (c) of this Section. This
amendatory Act of the 92nd General Assembly and this
amendatory Act of the 95th General Assembly shall be construed
as being declarative of existing law and not as a new
enactment.
(Source: P.A. 98-1162, eff. 6-1-15.)
(35 ILCS 200/22-85)
Sec. 22-85. Failure to timely take out and record deed;
deed is void. Unless the holder of the certificate purchased
at any tax sale under this Code takes out the deed in the time
provided by law, and records the same within one year from and
after the time for redemption expires, the certificate or
deed, and the sale on which it is based, shall, after the
expiration of the one year period, be absolutely void with no
right to reimbursement. If the holder of the certificate is
prevented from obtaining or recording a deed by injunction or
order of any court, or by the refusal or inability of any court
to act upon the application for a tax deed, or by the refusal
of the clerk to execute the same deed, or by the refusal,
inability, or delay of any county, city, village, or
incorporated town to issue transfer stamps, the time he or she

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is so prevented shall be excluded from computation of the one
year period. Certificates of purchase and deeds executed by
the clerk shall recite the qualifications required in this
Section. The court shall retain jurisdiction to enter orders
pursuant to this Section.
(Source: P.A. 87-669; 88-455.)
Section 99. Effective date. This Act takes effect upon
becoming law.