Public Act 093-1099
 
HB0867 Enrolled LRB093 05712 SJM 05805 b

    AN ACT in relation to taxes.
 
    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 31-5, 31-10, and 31-20 as follows:
 
    (35 ILCS 200/31-5)
    (Text of Section after amendment by P.A. 93-657)
    Sec. 31-5. Definitions.
    "Recordation" includes the issuance of certificates of
title by Registrars of Title under the Registered Titles
(Torrens) Act pursuant to the filing of deeds or trust
documents for that purpose, as well as the recording of deeds
or trust documents by recorders.
    "Department" means the Department of Revenue.
    "Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
    "Value" means the amount of the full actual consideration
for the real property or the beneficial interest in real
property located in Illinois, including the amount of any lien
on the real property assumed by the transferee buyer.
    "Trust document" means a document required to be recorded
under the Land Trust Recordation and Transfer Tax Act and,
beginning June 1, 2005, also means any document relating to the
transfer of a taxable beneficial interest under this Article.
    "Beneficial interest" includes, but is not limited to:
        (1) the beneficial interest in an Illinois land trust;
        (2) the lessee interest in a ground lease (including
    any interest of the lessee in the related improvements)
    that provides for a term of 30 or more years when all
    options to renew or extend are included, whether or not any
    portion of the term has expired; or
        (3) the indirect interest in real property as reflected
    by a controlling interest in a real estate entity.
    "Controlling interest" means more than 50% of the fair
market value of all ownership interests or beneficial interests
in a real estate entity.
    "Real estate entity" means any person including, but not
limited to, any partnership, corporation, limited liability
company, trust, other entity, or multi-tiered entity, that
exists or acts substantially for the purpose of holding
directly or indirectly title to or beneficial interest in real
property. There is a rebuttable presumption that an entity is a
real estate entity if it owns, directly or indirectly, real
property having a fair market value greater than 75% of the
total fair market value of all of the entity's assets,
determined without deduction for any mortgage, lien, or
encumbrance.
(Source: P.A. 92-651, eff. 7-11-02; 93-657, eff. 6-1-04.)
 
    (35 ILCS 200/31-10)
    (Text of Section after amendment by P.A. 93-657)
    Sec. 31-10. Imposition of tax. A tax is imposed on the
privilege of transferring title to real estate located in
Illinois, on the privilege of transferring a beneficial
interest in real property located in Illinois, and on the
privilege of transferring a controlling interest in a real
estate entity owning property located in Illinois, at the rate
of 50 for each $500 of value or fraction of $500 stated in the
declaration required by Section 31-25. If, however, the
transferring document states that the real estate, beneficial
interest, or controlling interest is transferred subject to a
mortgage, the amount of the mortgage remaining outstanding at
the time of transfer shall not be included in the basis of
computing the tax. The tax is due if the transfer is made by
one or more related transactions or involves one or more
persons or entities and whether or not a document is recorded.
(Source: P.A. 93-657, eff. 6-1-04.)
 
    (35 ILCS 200/31-20)
    (Text of Section after amendment by P.A. 93-657)
    Sec. 31-20. Affixing of stamps. Payment of the tax shall
be evidenced by revenue stamps in the amount required to show
full payment of the tax imposed by Section 31-10. Except as
provided in Section 31-45, a deed, document transferring a
controlling interest in real property, or trust document shall
not be accepted for filing by any recorder or registrar of
titles unless revenue stamps in the required amount have been
purchased from the recorder or registrar of titles of the
county where the deed, document transferring a controlling
interest in real property, or trust document is being filed for
recordation. The revenue stamps shall be affixed to the deed,
document transferring a controlling interest in real property,
or trust document by the recorder or the registrar of titles
either before or after recording as requested by the grantee.
The Department may prescribe a form to which stamps must be
affixed that a transferee must file for recordation at the time
a declaration is presented if a transferring document is not
presented for recordation within 3 business days after the
transfer is effected. A person using or affixing a revenue
stamp shall cancel it and so deface it as to render it unfit
for reuse by marking it with his or her initials and the day,
month and year when the affixing occurs. The marking shall be
made by writing or stamping in indelible ink or by perforating
with a machine or punch. However, the revenue stamp shall not
be so defaced as to prevent ready determination of its
denomination and genuineness.
(Source: P.A. 93-657, eff. 6-1-04.)
 
    Section 10. The Stock, Commodity, or Options Transaction
Tax Exemption Act is amended by changing Section 3 as follows:
 
    (35 ILCS 820/3)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 3. Construction of Act. Nothing in this Act shall be
construed as prohibiting or otherwise invalidating any real
estate transfer tax or fee authorized or permitted by Section
31-10 of the Property Tax Code, Sections 5-1031 and Section
5-1031.1 of the Counties Code, or Section 8-3-19 of the
Illinois Municipal Code. This Section is intended as a
clarification and not as a change to existing law.
(Source: P.A. 93-657, eff. 6-1-04.)
 
    Section 15. The Counties Code is amended by changing
Section 5-1031 as follows:
 
    (55 ILCS 5/5-1031)  (from Ch. 34, par. 5-1031)
    Sec. 5-1031. County real estate transfer tax.
    (a) The county board of a county may impose a tax upon the
privilege of transferring title to real estate, as represented
by the deed that is filed for recordation, and upon the
privilege of transferring a beneficial interest in a land trust
holding legal title to real estate located in such county as
represented by the trust document that is filed for
recordation, at the rate of 25 cents for each $500 of value or
fraction thereof stated in the declaration required by Section
31-25 of the Property Tax Code. If, however, the real estate is
transferred subject to a mortgage, the amount of the mortgage
remaining outstanding at the time of transfer shall not be
included in the basis of computing the tax.
    A tax imposed pursuant to this Section shall be collected
by the recorder or registrar of titles of the county prior to
recording the deed or trust document or registering the title
subject to the tax. All deeds or trust documents exempted in
Section 31-45 of the Property Tax Code shall also be exempt
from any tax imposed pursuant to this Section. A tax imposed
pursuant to this Section shall be in addition to all other
occupation and privilege taxes imposed by the State of Illinois
or any municipal corporation or political subdivision thereof.
    (b) The county board may impose a tax at the same rate on
the transfer of a beneficial interest, as defined in Section
31-5 of the Property Tax Code. If, however, the transferring
document states that the real estate or beneficial interest is
transferred subject to a mortgage, then the amount of the
mortgage remaining outstanding at the time of transfer shall
not be included in the basis of computing the tax.
    The tax must be paid at the time of recordation or, if a
document is not recorded, at the time of presentation of the
transfer declaration to the recorder, as provided in Section
31-25 of the Property Tax Code. All deeds or documents relating
to the transfer of a beneficial interest exempted in Sections
31-45 or 31-46 of the Property Tax Code are also exempt from
any tax imposed under this Section. A tax imposed under this
Section is in addition to all other occupation and privilege
taxes imposed by the State of Illinois or any municipal
corporation or political subdivision thereof.
    (c) Beginning June 1, 2005, a tax imposed under this
Section is due if the transfer is made by one or more related
transactions or involves one or more persons or entities,
regardless of whether a document is recorded.
(Source: P.A. 89-626, eff. 8-9-96.)
 
    Section 99. Effective date. This Act takes effect June 1,
2005.