{"data":{"id":"us-il/35-ilcs-200-21-302","jurisdiction":"us-il","citation":"35 ILCS 200/21-302","heading":"Payments of surplus equity.","body":"(a) A previous owner of property sold under any provision of this Code who sustains loss or damage by reason of the issuance of a tax deed shall have the right to recover surplus equity that was lost in the property through an award from a surplus equity fund as follows:\n(1) For tax deeds recorded in the 2 years prior to the effective date of this amendatory Act of the 104th General Assembly, the claim for an equity award under this Section shall be filed not later than 2 years after the effective date of this amendatory Act of the 104th General Assembly.\n(2) For outstanding tax certificates issued prior to the effective date of this amendatory Act of the 104th General Assembly that result in recorded deeds after the effective date of this amendatory Act of the 104th General Assembly, the claim for an equity award shall be filed not later than 2 years from the date of deed recording.\n(3) The equity award shall be limited to the value of the property as of the date the tax deed was issued less any mortgages or liens on the property.\n(4) In determining the fair cash value of property less any mortgages or liens on the property, the value shall be reduced by the amount of all taxes paid by the tax purchaser or his or her assignee before the issuance of the tax deed, or if the tax certificate was acquired pursuant to Section 21-90, the value shall be reduced by the amount of all taxes included in the certificate, plus the amount of subsequent, forfeited, or sold taxes excluded from payment or redemption under subsection (a) of Section 22-40 when the county or its agent, as trustee pursuant to Section 21-90, is the tax deed petitioner. The fair cash value shall also be reduced by the amount of any taxes that were merged into the tax deed pursuant to subsection (b) of Section 22-40. The value shall also be reduced by any amount received by the petitioner as a result of an auction held under Section 22-40 or 21-90. The court, in its discretion, may order the joinder of the mortgagee or lienholder as an additional party to the surplus equity action.\n(b) The provisions of the Code of Civil Procedure shall apply to proceedings under the petition, except that neither the petitioner nor the county treasurer shall be entitled to trial by jury on the issues presented in the petition.\nAny person claiming surplus equity under this Section shall petition the court that ordered the tax deed to issue, shall name the county treasurer, as trustee of the surplus equity fund, as defendant to the petition, and shall ask that judgment be entered against the county treasurer, as trustee, in the amount of the surplus equity sought.\nThe county treasurer, as trustee of the surplus equity fund, shall be so subrogated to all parties in whose favor judgment may be rendered against him or her, and by third party complaint may bring in as a defendant any person, other than the tax deed grantee and its successors in title, not a party to the action who is or may be liable to him or her, as subrogee, for all or part of the petitioner's claim against him or her.\n(c) Any contract involving the proceeds of a judgment for surplus equity under this Section, between the tax deed grantee or its successors in title and the surplus equity petitioner or his or her successors, shall be in writing. In any action brought under Section 21-302, the collector shall be entitled to discovery regarding, but not limited to, the following:\n(1) the identity of all persons beneficially interested in the contract, directly or indirectly, including at least the following information: the names and addresses of any natural persons; the place of incorporation of any corporation and the names and addresses of its shareholders, unless it is publicly held; the names and addresses of all general and limited partners of any partnership; the names and addresses of all persons having an ownership interest in any entity doing business under an assumed name and the county in which the assumed business name is registered; and the nature and extent of the interest in the contract of each person identified;\n(2) the time period during which the contract was negotiated and agreed upon, from the date of the first direct or indirect contact between any of the contracting parties to the date of its execution;\n(3) the name and address of each natural person who took part in negotiating the contract and the identity and relationship of the party that the person represented in the negotiations; and\n(4) the existence of an agreement for payment of attorney's fees by or on behalf of each party.\nAny information disclosed during discovery may be subject to protective order as deemed appropriate by the court. The terms of the contract shall not be used as evidence of value.\n(d) No previous owner shall be entitled to an award of surplus equity pursuant to this Section who was awarded a refund of surplus equity on the same property from an auction held under Section 22-40 or 21-90 or who previously petitioned successfully for indemnity from the indemnity fund on the same property under Section 21-305. Any amount awarded under this Section shall be subject to an offset in an amount equal to the amount recovered in any similar filing or cause of action against the county.\n(e) If the surplus equity fund does not have sufficient funds to cover any surplus equity award ordered pursuant to Section 21-302, the county shall fund the balance necessary to satisfy the unpaid surplus equity award pursuant to Section 21-302 within 12 months after the date of the court order awarding surplus equity.","path":["CHAPTER 35 REVENUE","Property Tax Code."],"source_url":"https://www.ilga.gov/legislation/ILCS/details?ActID=596\u0026ChapterID=8\u0026ChapAct=FullText\u0026Print=True","current_through":"at least Public Act 104-790","vintage":"","retrieved_at":"2026-09-15T04:46:20Z","sha256":"67087b1f8dc99896e3afaec4952930271dea4eed01d31c1931da08900ce85c35","source_id":"us-il","stale":false,"prev":"us-il/35-ilcs-200-21-301","next":"us-il/35-ilcs-200-21-305"},"notice":"GroundRules: Original legal text. Not legal advice."}