IL SB0586

Allows county collectors to administratively declare tax sales in error for specific grounds (property not subject to taxation, taxes paid prior to sale, double assessment, void description, assessor error, bankruptcy filing, or government-owned property) by notifying the certificate holder and providing 28 days to object.

Permits certificate holders to petition courts for sales in error when bankruptcy is filed after the tax sale, improvements are substantially destroyed or uninhabitable, federal interests in the property cannot be extinguished, or hazardous substances are present without purchaser's knowledge.

Requires courts to promptly notify county collectors when declaring sales in error under certificate holder petitions.

When a sale in error involves destroyed improvements, allows the court to assign the certificate to the county collector or delinquent tax agent instead of refunding the purchaser, with the agent extending the redemption period by 24 months.

Establishes that refunds for sales in error include all paid costs and interest at 1% per month (or lesser penalty interest) from sale date, except when grounds involve destroyed improvements, hazardous substances, or when the purchaser had prior knowledge.