093_SB1883

 
                                     LRB093 08674 SJM 08904 b

 1        AN ACT concerning taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Property Tax Code is amended by  changing
 5    Sections 31-5, 31-10, 31-20, and 31-25 as follows:

 6        (35 ILCS 200/31-5)
 7        Sec.  31-5.   Definitions.   "Recordation"  includes  the
 8    issuance  of  certificates  of  title  by Registrars of Title
 9    under the Registered Titles (Torrens)  Act  pursuant  to  the
10    filing  of deeds or trust documents for that purpose, as well
11    as the recording of deeds or trust documents by recorders.
12        "Department" means the Department of Revenue.
13        "Person" means any natural individual, firm, partnership,
14    association, joint stock company, joint adventure, public  or
15    private   corporation,   limited   liability  company,  or  a
16    receiver, executor, trustee, guardian or other representative
17    appointed by order of any court.
18        "Value" means the amount of the full actual consideration
19    for the real property, including the amount of  any  lien  on
20    the real property assumed by the buyer.
21        "Trust document" means a document required to be recorded
22    under the Land Trust Recordation and Transfer Tax Act.
23        "Controlling  interest"  means  (1)  50%  or  more of the
24    combined voting power or fair market value of  all  ownership
25    interests or beneficial interests in a real estate entity, or
26    (2) the right of one or of several persons to receive, at the
27    time of distribution, 50% or more of the income or profits of
28    a real estate entity.
29        "Real  estate entity" means any person including, but not
30    limited to, any partnership, corporation,  limited  liability
31    company,  trust,  other  entity, or multi-tiered entity, that
 
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 1    exists or acts  substantially  for  the  purpose  of  holding
 2    directly  or  indirectly  title  to or beneficial interest in
 3    real property located in the State of Illinois.  There  is  a
 4    rebuttable presumption that an entity is a real estate entity
 5    if  it owns, directly or indirectly, real property located in
 6    the State of Illinois having a fair market value greater than
 7    75% of the total fair market value of  all  of  the  entity's
 8    assets,  determined without deduction for any mortgage, lien,
 9    or encumbrance.
10    (Source: P.A. 92-651, eff. 7-11-02.)

11        (35 ILCS 200/31-10)
12        Sec. 31-10.  Imposition of tax. A tax is imposed  on  the
13    privilege   of   transferring   title   to  real  estate,  as
14    represented by the deed that is filed for recordation, and on
15    the privilege of transferring a beneficial interest  in  real
16    property  that  is the subject of a land trust as represented
17    by the trust document that is filed for recordation,  and  on
18    the  privilege  of  transferring  a controlling interest in a
19    real estate entity, at the rate of 50¢ for each $500 of value
20    or fraction of $500 stated in  the  declaration  required  by
21    Section  31-25.    If,  however,  the  deed or trust document
22    states  that  the  real  estate,  beneficial   interest,   or
23    controlling  interest  is  transferred subject to a mortgage,
24    the amount of the mortgage remaining outstanding at the  time
25    of  transfer  shall not be included in the basis of computing
26    the tax. The tax is due if the transfer is  made  by  one  or
27    more  related  transactions  and whether or not a document is
28    recorded.
29    (Source:  P.A.  86-624;  86-925;  86-1028;  86-1475;  87-543;
30    88-455.)

31        (35 ILCS 200/31-20)
32        Sec. 31-20.  Affixing of stamps. Payment of the tax shall
 
                            -3-      LRB093 08674 SJM 08904 b
 1    be evidenced by revenue stamps in the amount required to show
 2    full payment of the tax imposed by Section 31-10.  Except  as
 3    provided  in  Section  31-45, a deed, document transferring a
 4    controlling interest in  real  property,  or  trust  document
 5    shall not be accepted for filing by any recorder or registrar
 6    of  titles  unless revenue stamps in the required amount have
 7    been purchased from the recorder or registrar  of  titles  of
 8    the   county   where   the   deed,  document  transferring  a
 9    controlling interest in real property, or trust  document  is
10    being  filed  for  recordation.   The revenue stamps shall be
11    affixed to the  deed,  document  transferring  a  controlling
12    interest  in real property, or trust document by the recorder
13    or the registrar of titles either before or  after  recording
14    as  requested  by  the  grantee. A person using or affixing a
15    revenue stamp shall cancel it and so deface it as  to  render
16    it unfit for reuse by marking it with his or her initials and
17    the  day,  month  and  year  when  the affixing  occurs.  The
18    marking shall be made by writing or stamping in indelible ink
19    or by perforating with  a  machine  or  punch.  However,  the
20    revenue  stamp  shall  not  be so defaced as to prevent ready
21    determination of its denomination and genuineness.
22    (Source:  P.A.  86-624;  86-925;  86-1028;  86-1475;  87-543;
23    88-455.)

24        (35 ILCS 200/31-25)
25        Sec. 31-25.  Transfer declaration. At the time a deed,  a
26    document   transferring   a   controlling  interest  in  real
27    property, or trust document is presented for recordation,  or
28    within  3  business  days  after  the  transfer  is effected,
29    whichever is earlier, there shall also be  presented  to  the
30    recorder  or registrar of titles a  declaration, signed by at
31    least one of the sellers and also signed by at least  one  of
32    the  buyers  in the transaction or by the attorneys or agents
33    for the sellers  or  buyers.   The  declaration  shall  state
 
                            -4-      LRB093 08674 SJM 08904 b
 1    information  including,  but  not  limited  to:  (a) the full
 2    consideration for the property or interest in  real  property
 3    so  transferred;  (b)  the  parcel  identifying number of the
 4    property; (c) the legal description of the property; (d)  the
 5    date  of the deed, the date the transfer was effected, or the
 6    date of the trust document; (e) the type of  deed,  transfer,
 7    or  trust  document; (f) the address of the property; (g) the
 8    type of improvement, if any, on the property; (h) information
 9    as to whether the transfer is between related individuals  or
10    corporate  affiliates or is a compulsory transaction; (i) the
11    lot size or acreage; (j) the value of personal property  sold
12    with the real estate; (k) the year the contract was initiated
13    if  an  installment  sale;  and  (l)  the  name, address, and
14    telephone number of the  person  preparing  the  declaration.
15    Except  as  provided  in  Section  31-45,  a deed, a document
16    transferring a controlling  interest  in  real  property,  or
17    trust  document  shall not be accepted for recordation unless
18    it  is  accompanied  by  a  declaration  containing  all  the
19    information  requested  in   the   declaration.    When   the
20    declaration  is   signed by an attorney or agent on behalf of
21    sellers or buyers who have the power  of  direction  to  deal
22    with  the  title  to  the  real  estate  under  a  land trust
23    agreement, the trustee being the mere  repository  of  record
24    legal  title  with  a  duty of conveying the real estate only
25    when and  if  directed  in  writing  by  the  beneficiary  or
26    beneficiaries having the power of direction, the attorneys or
27    agents  executing the declaration on behalf of the sellers or
28    buyers  need  identify  only  the  land  trust  that  is  the
29    repository of record legal title and not the  beneficiary  or
30    beneficiaries  having  the  power of direction under the land
31    trust agreement. The declaration form shall be prescribed  by
32    the Department and shall contain sales information questions.
33    For  sales  occurring during a period in which the provisions
34    of Section 17-10 require the Department to adjust sale prices
 
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 1    for seller paid points and prevailing  cost  of  cash,    the
 2    declaration   form  shall  contain  questions  regarding  the
 3    financing  of  the  sale.   The  subject  of  the   financing
 4    questions  shall  include  any direct seller participation in
 5    the financing of the sale or information on financing that is
 6    unconventional so as to affect the fair cash  value  received
 7    by  the  seller.   The  intent  of  the  sales  and financing
 8    questions is to aid in the reduction in the number of  buyers
 9    required  to  provide financing information necessary for the
10    adjustment outlined in Section 17-10.   For  sales  occurring
11    during  a  period  in  which  the provisions of Section 17-10
12    require the Department to adjust sale prices for seller  paid
13    points  and  prevailing  cost  of  cash, the declaration form
14    shall include, at a minimum, the following data:  (a)  seller
15    paid  points,  (b)  the  sales  price,  (c) type of financing
16    (conventional, VA, FHA, seller-financed, or other), (d)  down
17    payment,   (e)   term,   (f)  interest  rate,  (g)  type  and
18    description  of   interest   rate   (fixed,   adjustable   or
19    renegotiable), and (h) an appropriate place for the inclusion
20    of  special  facts  or  circumstances, if any. The Department
21    shall provide an adequate supply of forms  to  each  recorder
22    and registrar of titles in the State.
23    (Source: P.A. 91-555, eff. 1-1-00.)

24        Section 10.  The Stock, Commodity, or Options Transaction
25    Tax Exemption Act is amended by adding Section 3 as follows:

26        (35 ILCS 820/3 new)
27        Sec.  3.  Construction  of Act. Nothing in this Act shall
28    be construed as prohibiting  or  otherwise  invalidating  any
29    real  estate  transfer  tax or fee authorized or permitted by
30    law.

31        Section 15.  The Counties Code  is  amended  by  changing
 
                            -6-      LRB093 08674 SJM 08904 b
 1    Section 5-1031.1 as follows:

 2        (55 ILCS 5/5-1031.1)
 3        Sec. 5-1031.1. Home rule real estate transfer taxes.
 4        (a)  After  the  effective date of this amendatory Act of
 5    the 93rd General Assembly 1996 and subject to this Section, a
 6    home rule county may impose or increase a tax or other fee on
 7    the privilege  of  transferring  title  to  real  estate,  as
 8    represented by the deed that is filed for recordation, and on
 9    the privilege of transferring a beneficial interest in a land
10    trust  holding  legal  title  to  real  property,  and on the
11    privilege of transferring a controlling interest  in  a  real
12    estate  entity, all to the same extent as a tax is authorized
13    under Article 31 of the Property Tax Code as  represented  by
14    the trust document that is filed for recordation.  Such a tax
15    or  other  fee on the privilege of transferring title to real
16    estate,  as  represented  by  the  deed  that  is  filed  for
17    recordation,  and  on  the  privilege   of   transferring   a
18    beneficial  interest  in  a land trust holding legal title to
19    real property, as represented by the trust document  that  is
20    filed  for  recordation,  shall hereafter be referred to as a
21    real estate transfer tax.
22        (b)  Before adopting a resolution to submit the  question
23    of  imposing  or  increasing  a  real  estate transfer tax to
24    referendum,  the  corporate  authorities  shall  give  public
25    notice of and hold a public hearing on the intent  to  submit
26    the  question  to  referendum.  This hearing may be part of a
27    regularly scheduled meeting  of  the  corporate  authorities.
28    The  notice shall be published not more than 30 nor less than
29    10 days prior to  the  hearing  in  a  newspaper  of  general
30    circulation within the county.  The notice shall be published
31    in the following form:
32             Notice  of Proposed (Increased) Real Estate Transfer
33        Tax for (commonly known name of county).
 
                            -7-      LRB093 08674 SJM 08904 b
 1             A public  hearing  on  a  resolution  to  submit  to
 2        referendum  the  question  of a proposed (increased) real
 3        estate transfer tax for (legal name of the county) in  an
 4        amount  of (rate) to be paid by the buyer (seller) of the
 5        real estate transferred will be held on (date) at  (time)
 6        at  (location).  The current rate of real estate transfer
 7        tax imposed by (name of county) is (rate).
 8             Any person desiring to appear at the public  hearing
 9        and present testimony to the taxing district may do so.
10        (c)  A notice that includes any information not specified
11    and  required  by  this  Section  is  an invalid notice.  All
12    hearings shall be open to the public.  At the public hearing,
13    the corporate authorities of the  county  shall  explain  the
14    reasons  for  the  proposed or increased real estate transfer
15    tax  and  shall  permit  persons  desiring  to  be  heard  an
16    opportunity  to  present  testimony  within  reasonable  time
17    limits determined by the corporate authorities.   A  copy  of
18    the proposed ordinance shall be made available to the general
19    public for inspection before the public hearing.
20        (d)  No  home  rule county shall impose a new real estate
21    transfer tax after the effective date of this amendatory  Act
22    of  1996  without prior approval by referendum.  No home rule
23    county shall impose an increase of the rate of a current real
24    estate transfer tax without prior approval by referendum.   A
25    home rule county may impose a new real estate transfer tax or
26    may  increase an existing real estate transfer tax with prior
27    referendum approval.  The referendum shall  be  conducted  as
28    provided in subsection (e).
29        (e)  The  home  rule county shall, by resolution, provide
30    for submission of the proposition to the  voters.   The  home
31    rule  county shall certify the resolution and the proposition
32    to the proper  election  officials  in  accordance  with  the
33    general  election law.  If the proposition is to impose a new
34    real estate transfer tax, it shall be  in  substantially  the
 
                            -8-      LRB093 08674 SJM 08904 b
 1    following form:  "Shall (name of county) impose a real estate
 2    transfer  tax  at  a  rate  of (rate) to be paid by the buyer
 3    (seller) of the real estate transferred, with the revenue  of
 4    the proposed transfer tax to be used for (purpose)?".  If the
 5    proposition  is  to increase an existing real estate transfer
 6    tax, it shall be in the  following  form:   "Shall  (name  of
 7    county)  impose  a  real  estate  transfer  tax  increase  of
 8    (percent  increase)  to  establish a new real estate transfer
 9    tax rate of (rate) to be paid by the buyer  (seller)  of  the
10    real estate transferred?  The current rate of the real estate
11    transfer   tax  is  (rate),  and  the  revenue  is  used  for
12    (purpose).  The revenue from the increase is to be  used  for
13    (purpose).".
14        If  a  majority of the electors voting on the proposition
15    vote in favor of it, the county may impose  or  increase  the
16    real estate transfer tax.
17        (f)  Nothing  in  this amendatory Act of 1996 shall limit
18    the purposes for which real estate transfer tax revenues  may
19    be collected or expended.
20        (g)  A  home  rule  county  may  not  impose  real estate
21    transfer taxes other than as authorized by this Section. This
22    Section is a denial and limitation of home  rule  powers  and
23    functions under subsection (g) of Section 6 of Article VII of
24    the Illinois Constitution.
25    (Source: P.A. 89-701, eff. 1-17-97; 90-14, eff. 7-1-97.)

26        Section  20.   The  Illinois Municipal Code is amended by
27    changing Section 8-3-19 as follows:

28        (65 ILCS 5/8-3-19)
29        Sec. 8-3-19.  Home rule real estate transfer taxes.
30        (a)  After the effective date of this amendatory  Act  of
31    the 93rd General Assembly 1996 and subject to this Section, a
32    home  rule municipality may impose or increase a tax or other
 
                            -9-      LRB093 08674 SJM 08904 b
 1    fee on the privilege of transferring title to real estate, as
 2    represented by the deed that is filed for recordation, and on
 3    the privilege of transferring a beneficial interest in a land
 4    trust holding legal  title  to  real  property,  and  on  the
 5    privilege  of  transferring  a controlling interest in a real
 6    estate entity, all to the same extent as a tax is  authorized
 7    under  Article  31 of the Property Tax Code as represented by
 8    the trust document that is filed for recordation.  Such a tax
 9    or other fee on the privilege of transferring title  to  real
10    estate,  as  represented  by  the  deed  that  is  filed  for
11    recordation,   and   on   the  privilege  of  transferring  a
12    beneficial interest in a land trust holding  legal  title  to
13    real  property,  as represented by the trust document that is
14    filed for recordation, shall hereafter be referred  to  as  a
15    real estate transfer tax.
16        (b)  Before  adopting a resolution to submit the question
17    of imposing or increasing  a  real  estate  transfer  tax  to
18    referendum,  the  corporate  authorities  shall  give  public
19    notice  of  and hold a public hearing on the intent to submit
20    the question to referendum.  This hearing may be  part  of  a
21    regularly  scheduled  meeting  of  the corporate authorities.
22    The notice shall be published not more than 30 nor less  than
23    10  days  prior  to  the  hearing  in  a newspaper of general
24    circulation within the municipality.   The  notice  shall  be
25    published in the following form:
26             Notice  of Proposed (Increased) Real Estate Transfer
27        Tax for (commonly known name of municipality).
28             A public  hearing  on  a  resolution  to  submit  to
29        referendum  the  question  of a proposed (increased) real
30        estate transfer tax for (legal name of the  municipality)
31        in  an  amount of (rate) to be paid by the buyer (seller)
32        of the real estate transferred will be held on (date)  at
33        (time)  at  (location).  The  current rate of real estate
34        transfer tax imposed by (name of municipality) is (rate).
 
                            -10-     LRB093 08674 SJM 08904 b
 1             Any person desiring to appear at the public  hearing
 2        and present testimony to the taxing district may do so.
 3        (c)  A notice that includes any information not specified
 4    and  required  by  this  Section  is  an  invalid notice. All
 5    hearings shall be open to the public. At the public  hearing,
 6    the  corporate  authorities of the municipality shall explain
 7    the  reasons  for  the  proposed  or  increased  real  estate
 8    transfer tax and shall permit persons desiring to be heard an
 9    opportunity  to  present  testimony  within  reasonable  time
10    limits determined by the corporate authorities. A copy of the
11    proposed ordinance shall be made  available  to  the  general
12    public for inspection before the public hearing.
13        (d)  No  home  rule  municipality shall impose a new real
14    estate  transfer  tax  after  the  effective  date  of   this
15    amendatory  Act of 1996 without prior approval by referendum.
16    No home rule municipality shall impose  an  increase  of  the
17    rate  of  a  current  real  estate transfer tax without prior
18    approval by referendum.  A home rule municipality may  impose
19    a  new  real  estate transfer tax or may increase an existing
20    real estate transfer tax with prior referendum approval.  The
21    referendum shall be conducted as provided in subsection (e).
22        (e)  The home rule  municipality  shall,  by  resolution,
23    provide for submission of the proposition to the voters.  The
24    home  rule  municipality shall certify the resolution and the
25    proposition to the proper election  officials  in  accordance
26    with  the  general  election  law.   If the proposition is to
27    impose a new  real  estate  transfer  tax,  it  shall  be  in
28    substantially   the   following   form:    "Shall   (name  of
29    municipality) impose a real estate transfer tax at a rate  of
30    (rate)  to  be  paid by the buyer (seller) of the real estate
31    transferred, with the revenue of the proposed transfer tax to
32    be used for (purpose)?".  If the proposition is  to  increase
33    an  existing  real  estate  transfer  tax, it shall be in the
34    following form:  "Shall (name of municipality) impose a  real
 
                            -11-     LRB093 08674 SJM 08904 b
 1    estate   transfer  tax  increase  of  (percent  increase)  to
 2    establish a new transfer tax rate of (rate) to be paid by the
 3    buyer (seller) of the real estate transferred?   The  current
 4    rate  of  the  real  estate  transfer  tax is (rate), and the
 5    revenue is used for (purpose).  The revenue from the increase
 6    is to be used for (purpose).".
 7        If a majority of the electors voting on  the  proposition
 8    vote  in favor of it, the municipality may impose or increase
 9    the municipal real estate transfer tax or fee.
10        (f)  Nothing in this amendatory Act of 1996  shall  limit
11    the  purposes for which real estate transfer tax revenues may
12    be collected or expended.
13        (g)  A home rule municipality may not impose real  estate
14    transfer taxes other than as authorized by this Section. This
15    Section  is  a  denial and limitation of home rule powers and
16    functions under subsection (g) of Section 6 of Article VII of
17    the Illinois Constitution.
18    (Source: P.A. 89-701, eff. 1-17-97.)

19        Section 99.  Effective date.  This Act takes effect  upon
20    becoming law.