102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1814

 

Introduced 2/17/2021, by Rep. Delia C. Ramirez

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-3-19

    Amends the Illinois Municipal Code. Makes a technical change in a Section concerning home rule real estate transfer taxes.


LRB102 14034 AWJ 19386 b

 

 

A BILL FOR

 

HB1814LRB102 14034 AWJ 19386 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 8-3-19 as follows:
 
6    (65 ILCS 5/8-3-19)
7    Sec. 8-3-19. Home rule real estate transfer taxes.
8    (a) After the the effective date of this amendatory Act of
9the 93rd General Assembly and subject to this Section, a home
10rule municipality may impose or increase a tax or other fee on
11the privilege of transferring title to real estate, on the
12privilege of transferring a beneficial interest in real
13property, and on the privilege of transferring a controlling
14interest in a real estate entity, as the terms "beneficial
15interest", "controlling interest", and "real estate entity"
16are defined in Article 31 of the Property Tax Code. Such a tax
17or other fee shall hereafter be referred to as a real estate
18transfer tax.
19    (b) Before adopting a resolution to submit the question of
20imposing or increasing a real estate transfer tax to
21referendum, the corporate authorities shall give public notice
22of and hold a public hearing on the intent to submit the
23question to referendum. This hearing may be part of a

 

 

HB1814- 2 -LRB102 14034 AWJ 19386 b

1regularly scheduled meeting of the corporate authorities. The
2notice shall be published not more than 30 nor less than 10
3days prior to the hearing in a newspaper of general
4circulation within the municipality. The notice shall be
5published in the following form:
6        Notice of Proposed (Increased) Real Estate Transfer
7    Tax for (commonly known name of municipality).
8        A public hearing on a resolution to submit to
9    referendum the question of a proposed (increased) real
10    estate transfer tax for (legal name of the municipality)
11    in an amount of (rate) to be paid by the buyer (seller) of
12    the real estate transferred will be held on (date) at
13    (time) at (location). The current rate of real estate
14    transfer tax imposed by (name of municipality) is (rate).
15        Any person desiring to appear at the public hearing
16    and present testimony to the taxing district may do so.
17    (c) A notice that includes any information not specified
18and required by this Section is an invalid notice. All
19hearings shall be open to the public. At the public hearing,
20the corporate authorities of the municipality shall explain
21the reasons for the proposed or increased real estate transfer
22tax and shall permit persons desiring to be heard an
23opportunity to present testimony within reasonable time limits
24determined by the corporate authorities. A copy of the
25proposed ordinance shall be made available to the general
26public for inspection before the public hearing.

 

 

HB1814- 3 -LRB102 14034 AWJ 19386 b

1    (d) Except as provided in subsection (i), no home rule
2municipality shall impose a new real estate transfer tax after
3the effective date of this amendatory Act of 1996 without
4prior approval by referendum. Except as provided in subsection
5(i), no home rule municipality shall impose an increase of the
6rate of a current real estate transfer tax without prior
7approval by referendum. A home rule municipality may impose a
8new real estate transfer tax or may increase an existing real
9estate transfer tax with prior referendum approval. The
10referendum shall be conducted as provided in subsection (e).
11An existing ordinance or resolution imposing a real estate
12transfer tax may be amended without approval by referendum if
13the amendment does not increase the rate of the tax or add
14transactions on which the tax is imposed.
15    (e) The home rule municipality shall, by resolution,
16provide for submission of the proposition to the voters. The
17home rule municipality shall certify the resolution and the
18proposition to the proper election officials in accordance
19with the general election law. If the proposition is to impose
20a new real estate transfer tax, it shall be in substantially
21the following form: "Shall (name of municipality) impose a
22real estate transfer tax at a rate of (rate) to be paid by the
23buyer (seller) of the real estate transferred, with the
24revenue of the proposed transfer tax to be used for
25(purpose)?". If the proposition is to increase an existing
26real estate transfer tax, it shall be in the following form:

 

 

HB1814- 4 -LRB102 14034 AWJ 19386 b

1"Shall (name of municipality) impose a real estate transfer
2tax increase of (percent increase) to establish a new transfer
3tax rate of (rate) to be paid by the buyer (seller) of the real
4estate transferred? The current rate of the real estate
5transfer tax is (rate), and the revenue is used for (purpose).
6The revenue from the increase is to be used for (purpose).".
7    If a majority of the electors voting on the proposition
8vote in favor of it, the municipality may impose or increase
9the municipal real estate transfer tax or fee.
10    (f) Nothing in this amendatory Act of 1996 shall limit the
11purposes for which real estate transfer tax revenues may be
12collected or expended.
13    (g) A home rule municipality may not impose real estate
14transfer taxes other than as authorized by this Section. This
15Section is a denial and limitation of home rule powers and
16functions under subsection (g) of Section 6 of Article VII of
17the Illinois Constitution.
18    (h) Notwithstanding subsection (g) of this Section, any
19real estate transfer taxes adopted by a municipality at any
20time prior to January 17, 1997 (the effective date of Public
21Act 89-701) and any amendments to any existing real estate
22transfer tax ordinance adopted after that date, in accordance
23with the law in effect at the time of the adoption of the
24amendments, are not preempted by this amendatory Act of the
2593rd General Assembly.
26    (i) Within 6 months after the effective date of this

 

 

HB1814- 5 -LRB102 14034 AWJ 19386 b

1amendatory Act of the 95th General Assembly, by ordinance
2adopted without a referendum, a home rule municipality with a
3population in excess of 1,000,000 may increase the rate of an
4existing real estate transfer tax by a rate of up to $1.50 for
5each $500 of value or fraction thereof, or in the alternative
6may impose a real estate transfer tax at a rate of up to $1.50
7for each $500 of value or fraction thereof, which may be on the
8buyer or seller of real estate, or jointly and severally on
9both, for the sole purpose of providing financial assistance
10to the Chicago Transit Authority. All amounts collected under
11such supplemental tax, after fees for costs of collection,
12shall be provided to the Chicago Transit Authority pursuant to
13an intergovernmental agreement as promptly as practicable upon
14their receipt. Such municipality shall file a copy of any
15ordinance imposing or increasing such tax with the Illinois
16Department of Revenue and shall file a report with the
17Department each month certifying the amount paid to the
18Chicago Transit Authority in the previous month from the
19proceeds of such tax.
20(Source: P.A. 95-708, eff. 1-18-08.)