Background - Two tax purchasers (Wolfe/Bittorf and Janson) bought delinquent tax certificates for property located in the Town of Cortland; portions of the purchase prices were attributable to taxes levied for Special Service Areas (SSAs) created to fund a water treatment system (Schaeffer System). - Trial courts (on remand for Wolfe) declared the tax sales to be sales in error and ordered refunds under 35 ILCS 200/21-310; the Collector moved for rulings on how refunds should be paid and which taxing body is responsible. - Cortland intervened asserting that SSA tax proceeds (deposited in a Bond Fund) — not Cortland’s general fund — should bear pro rata refunds for SSA taxes; petitioners argued refunds must come from Cortland’s general tax revenue (or be paid by the Collector up front). - Trial courts ruled: Collector need not advance refunds before collecting funds from the appropriate taxing body; refunds for SSA-attributable amounts should come from future SSA tax receipts (treating SSAs as taxing bodies), with any non-SSA portion from Cortland’s general revenue. - On appeal the court affirmed intervention and that the Collector need not pay refunds immediately, but reversed the characterization of SSAs as taxing bodies, holding Cortland (the municipality that levied the taxes) is the appropriate taxing body and refunds should be paid from Cortland’s general tax revenue. ### Issues | Issue | Plaintiff's Argument | Defendant's Argument | Held | |---|---:|---:|---| | Whether Cortland could timely intervene | Cortland’s interests weren’t at stake until sale in error was entered; intervention timely and necessary | Collector asserted it represented interests but had no position on which taxing body should pay | Intervention proper; trial court did not abuse discretion | | Whether Collector must pay refunds up front on demand | Petitioners: statute requires refund on demand; Collector should advance funds then recoup from taxing body (protect purchasers) | Collector: no statutory fund; may wait to collect from taxing body before paying; section contemplates delay | Collector need not advance funds; may pay after collecting from appropriate taxing body | | Whether an SSA qualifies as the "taxing body" responsible for refunds | Petitioners: SSA cannot be a taxing body (no power to levy); refunds should come from Cortland general fund or all SSA funds | Cortland: SSAs function like taxing bodies for SSA taxes; refund burden should be limited to SSA receipts | SSAs are not "taxing bodies" under the Code; Cortland is the taxing body responsible for refunds attributable to SSA levies | | Remedies if SSA funds are exhausted or SSAs expire | Petitioners: if refunds limited to SSA receipts, purchasers may never be repaid (absurd result) | Cortland/Collector: purchasers can recover from property owner under 21-340; statute contemplates delay | Court: purchasers may pursue owner under 21-340 if Collector cannot obtain funds; but Collector’s refund obligation survives and Cortland (municipality) must bear SSA-attributable refunds from its general receipts | ### Key Cases Cited Madison Two Associates v. Pappas, 227 Ill. 2d 474 (discusses taxing districts and intervention by taxing bodies) Jackson v. Board of Election Commissioners, 2012 IL 111928 (explains relationship between county collection authorities and local taxing districts) Thornton Ltd. v. Rosewell, 72 Ill. 2d 399 (states public policy encouraging bidders to participate in tax sales) Joliet Stove Works v. Kiep, 230 Ill. 550 (distinguishes recoveries from collector and recoveries from property owner)