SB 586 — PROP TX-SALE IN ERROR

*LRB10004126HLH14131b* SB0586 100THEngrossed GENERALLRB100 ASSEMBLY04126 StateHLH of14131 Illinoisb andAN 2018ACT SB0586concerning Introducedrevenue. 1/24/2017, by Sen.

Jason A.

Barickman SYNOPSIS AS INTRODUCED:

ILCS 200/21-310 ILCS 200/21-315 ILCS 200/21-385 Amends the Property Tax Code.

In provisions concerning sales in error, provides that, in cases where improvements upon the property sold have been substantially destroyed or rendered uninhabitable or otherwise unfit for occupancy, the court may order assignment of the certificate of purchase to the county collector or the delinquent county tax agent instead of declaring a sale in error upon request of the county collector.

Provides that, if the certificate of purchase is assigned to the county delinquent tax agent because the improvements have been substantially destroyed or rendered uninhabitable or otherwise unfit for occupancy, then the county delinquent tax agent shall extend the redemption period by 24 months.

Requires the court to notify the county collector when it declares a sale in error under certain conditions.

LRB100 04126 HLH 14131 b FISCAL NOTE ACT HOUSING MAY APPLY AFFORDABILITY IMPACT NOTE ACT MAY APPLY A BILL FOR SB0586 LRB100 04126 HLH 14131 b AN ACT concerning revenue.

(1) the property was not subject to taxation, or all or any part of the lien of taxes sold has become null and void pursuant to Section 21-95 or unenforceable pursuant to subsection (c) of Section 18-250 or subsection (b) of Section 22-40, (2) the taxes or special assessments had been paid prior to the sale of the property, (3) there is a double assessment, (4) the description is void for uncertainty, (5) the assessor, chief county assessment officer, SB0586 Engrossed - 2 - LRB100 04126 HLH 14131 b 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;

Chapter 7, 11, 12, or 13 has been SB0586 Engrossed - 3 - LRB100 04126 HLH 14131 b filed subsequent to the tax sale and prior to the issuance of the tax deed.

SB0586 Engrossed - 4 - LRB100 04126 HLH 14131 b (c) When the county collector discovers, prior to the expiration of the period of redemption, that a tax sale should not have occurred for one or more of the reasons set forth in subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, the county collector shall notify the last known owner of the certificate of purchase by certified and regular mail, or other means reasonably calculated to provide actual notice, that the county collector intends to declare an administrative sale in error and of the reasons therefor, including documentation sufficient to establish the reason why the sale should not have occurred.

The county collector shall promptly notify the last known owner of the certificate of purchase of the declaration by regular SB0586 Engrossed - 5 - LRB100 04126 HLH 14131 b mail and shall promptly pay the amount of the tax sale, together with interest and costs as provided in Section 21-315, upon surrender of the original certificate of purchase.

8-21-07.) SB0586 Engrossed - 6 - LRB100 04126 HLH 14131 b (35 ILCS 200/21-315) Sec.

(c) When the county collector files a petition for sale in error under Section 21-310 and mails a notice thereof by certified or registered mail to the last known owner of the SB0586 Engrossed - 7 - LRB100 04126 HLH 14131 b certificate of purchase, any interest otherwise payable under this Section shall cease to accrue as of the date the petition is filed, unless the tax purchaser agrees to an order for sale in error upon the presentation of the petition to the court.

(d) When a petition for a sale in error is filed under subsection (b) of Section 21-310, the petition shall be filed SB0586 Engrossed - 8 - LRB100 04126 HLH 14131 b under the order in which the court previously ordered the taxes sold.

If prior to the expiration of the period of redemption or extended period of redemption a petition for tax deed has been filed under Section 22-30, upon application of the petitioner, the court shall allow the purchaser or his or her assignee to extend the period of redemption after expiration of the original period or any extended period of redemption, provided that any extension allowed will expire not later than 3 years from the date of sale, unless the certificate has been assigned to the county collector or the county delinquent tax agent by the court which SB0586 Engrossed - 9 - LRB100 04126 HLH 14131 b ordered the property sold, in which case the period of redemption shall be extended for 24 months.