Full Text of HB0867 93rd General Assembly
HB0867enr 93RD GENERAL ASSEMBLY
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| AN ACT in relation to taxes.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing | 5 |
| Sections 31-5, 31-10, and 31-20 as follows: | 6 |
| (35 ILCS 200/31-5)
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| (Text of Section after amendment by P.A. 93-657 ) | 8 |
| Sec. 31-5. Definitions.
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| "Recordation" includes the issuance of
certificates of | 10 |
| title by Registrars of Title under the Registered Titles
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| (Torrens) Act pursuant to the filing of deeds or trust | 12 |
| documents for that
purpose, as well as the recording of deeds | 13 |
| or trust documents by recorders.
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| "Department" means the Department of Revenue.
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| "Person" means any natural individual, firm, partnership, | 16 |
| association,
joint stock company, joint adventure, public or | 17 |
| private corporation, limited
liability company, or a receiver, | 18 |
| executor, trustee, guardian or other
representative appointed | 19 |
| by order of any court.
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| "Value" means the amount of the full actual consideration | 21 |
| for the real
property or the beneficial interest in real | 22 |
| property located in Illinois , including the
amount of any lien | 23 |
| on the real property assumed by the transferee
buyer .
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| "Trust document" means a document required to be recorded | 25 |
| under the Land
Trust Recordation and Transfer Tax Act and, | 26 |
| beginning June 1, 2005, also means any document relating to the | 27 |
| transfer of a taxable beneficial interest under this Article .
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| "Beneficial interest" includes, but is not limited to:
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| (1) the beneficial interest in an Illinois land trust;
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| (2) the lessee interest in a ground lease (including | 31 |
| any interest of the
lessee in the related improvements) | 32 |
| that provides for a term of 30 or more
years
when all |
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| options to renew or extend are included, whether or not any | 2 |
| portion of
the term has expired; or
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| (3) the indirect interest in real property as reflected | 4 |
| by a controlling
interest in a real estate entity.
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| "Controlling interest" means more than 50% of the
fair
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| market value of all ownership interests or beneficial interests | 7 |
| in a real
estate entity.
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| "Real estate entity" means any person
including, but not
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| limited to, any partnership, corporation, limited liability | 10 |
| company, trust,
other entity, or
multi-tiered
entity, that | 11 |
| exists or acts substantially for the purpose of holding | 12 |
| directly
or indirectly title to or
beneficial interest in real | 13 |
| property.
There is a rebuttable presumption
that
an entity is a | 14 |
| real estate entity if it owns, directly or indirectly, real
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| property
having a fair market value greater than 75% of the | 16 |
| total fair market
value of all of the
entity's assets, | 17 |
| determined without deduction for any mortgage, lien, or
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| encumbrance.
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| (Source: P.A. 92-651, eff. 7-11-02; 93-657, eff. 6-1-04.)
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| (35 ILCS 200/31-10)
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| (Text of Section after amendment by P.A. 93-657 ) | 22 |
| Sec. 31-10. Imposition of tax. A tax is imposed on the | 23 |
| privilege of
transferring title to real estate located in | 24 |
| Illinois, on the privilege of transferring a beneficial | 25 |
| interest in
real
property located in Illinois,
and on the | 26 |
| privilege of transferring a controlling interest in a real | 27 |
| estate
entity owning property located in Illinois,
at the rate | 28 |
| of 50˘ for each $500 of
value or fraction of $500 stated in the | 29 |
| declaration required by Section 31-25.
If, however, the | 30 |
| transferring document states that the real estate, beneficial | 31 |
| interest, or
controlling interest
is
transferred subject to a | 32 |
| mortgage, the amount of the mortgage remaining
outstanding at | 33 |
| the time of transfer shall not be included in the basis of
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| computing the tax.
The tax is due if the transfer is made
by | 35 |
| one or more related transactions or involves one or more |
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| persons or entities
and whether or
not a document is recorded.
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| (Source: P.A. 93-657, eff. 6-1-04.)
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| (35 ILCS 200/31-20)
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| (Text of Section after amendment by P.A. 93-657 ) | 5 |
| Sec. 31-20. Affixing of stamps. Payment of the tax shall | 6 |
| be evidenced by
revenue stamps in the amount required to show | 7 |
| full payment of the tax imposed
by Section 31-10. Except as | 8 |
| provided in Section 31-45, a deed, document
transferring a | 9 |
| controlling interest in real property,
or trust document
shall | 10 |
| not be accepted for filing by any recorder or registrar of | 11 |
| titles unless
revenue stamps in the required amount have been | 12 |
| purchased from the recorder or
registrar of titles of the | 13 |
| county where the deed, document transferring a
controlling | 14 |
| interest in real property,
or trust document is being
filed for | 15 |
| recordation. The revenue stamps shall be affixed to the deed,
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| document transferring a controlling interest in real property,
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| or
trust document by the recorder or the registrar of titles | 18 |
| either before or
after recording as requested by the grantee. | 19 |
| The Department may prescribe a form to which stamps must be | 20 |
| affixed that a transferee must file for recordation at the time | 21 |
| a declaration is presented if a transferring document is not | 22 |
| presented for recordation within 3 business days after the | 23 |
| transfer is effected. A person using or affixing a
revenue | 24 |
| stamp shall cancel it and so deface it as to render it unfit | 25 |
| for reuse
by marking it with his or her initials and the day, | 26 |
| month and year when the
affixing occurs. The marking shall be | 27 |
| made by writing or stamping in
indelible ink or by perforating | 28 |
| with a machine or punch. However, the revenue
stamp shall not | 29 |
| be so defaced as to prevent ready determination of its
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| denomination and genuineness.
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| (Source: P.A. 93-657, eff. 6-1-04.)
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| Section 10. The Stock, Commodity, or Options Transaction
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| Tax Exemption Act is amended by changing Section 3 as follows: |
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| (35 ILCS 820/3)
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| (This Section may contain text from a Public Act with a | 3 |
| delayed effective date ) | 4 |
| Sec. 3. Construction of Act. Nothing in this Act shall be | 5 |
| construed as
prohibiting or
otherwise invalidating any real | 6 |
| estate transfer tax or fee authorized
or permitted by
Section | 7 |
| 31-10 of the Property Tax Code,
Sections 5-1031 and
Section
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| 5-1031.1 of the Counties
Code,
or
Section 8-3-19 of the | 9 |
| Illinois Municipal Code. This Section is intended as a
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| clarification
and not as a change to existing law.
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| (Source: P.A. 93-657, eff. 6-1-04.) | 12 |
| Section 15. The Counties Code is amended by changing | 13 |
| Section 5-1031 as follows:
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| (55 ILCS 5/5-1031) (from Ch. 34, par. 5-1031)
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| Sec. 5-1031. County real estate transfer tax. | 16 |
| (a) The county board of a
county may impose a tax upon the | 17 |
| privilege of transferring title to real
estate, as represented | 18 |
| by the deed that is filed for recordation, and upon
the | 19 |
| privilege of transferring a beneficial interest in a land trust | 20 |
| holding
legal title to real estate located in such county as | 21 |
| represented by the
trust document that is filed for | 22 |
| recordation, at the rate of 25 cents for
each $500 of value or | 23 |
| fraction thereof stated in the declaration required
by Section | 24 |
| 31-25 of the Property Tax Code. If, however, the real
estate is | 25 |
| transferred subject to a mortgage, the amount of the mortgage
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| remaining outstanding at the time of transfer shall not be | 27 |
| included in the
basis of computing the tax.
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| A tax imposed pursuant to this Section shall be collected | 29 |
| by the recorder
or registrar of titles of the county prior to | 30 |
| recording the
deed or trust document or registering the title | 31 |
| subject to the tax.
All deeds or trust documents exempted in | 32 |
| Section 31-45 of the Property Tax
Code shall also be exempt | 33 |
| from any tax imposed pursuant to
this Section. A tax imposed | 34 |
| pursuant to this Section shall be in addition
to all other |
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| occupation and privilege taxes imposed by the State of
Illinois | 2 |
| or any municipal corporation or political subdivision thereof. | 3 |
| (b) The county board may impose a tax at the same rate on | 4 |
| the transfer of a beneficial interest, as defined in Section | 5 |
| 31-5 of the Property Tax Code. If, however, the transferring | 6 |
| document states that the real estate or beneficial interest is | 7 |
| transferred subject to a mortgage, then the amount of the | 8 |
| mortgage remaining outstanding at the time of transfer shall | 9 |
| not be included in the basis of computing the tax. | 10 |
| The tax must be paid at the time of recordation or, if a | 11 |
| document is not recorded, at the time of presentation of the | 12 |
| transfer declaration to the recorder, as provided in Section | 13 |
| 31-25 of the Property Tax Code. All deeds or documents relating | 14 |
| to the transfer of a beneficial interest exempted in Sections | 15 |
| 31-45 or 31-46 of the Property Tax Code are also exempt from | 16 |
| any tax imposed under this Section. A tax imposed under this | 17 |
| Section is in addition to all other occupation and privilege | 18 |
| taxes imposed by the State of Illinois or any municipal | 19 |
| corporation or political subdivision thereof. | 20 |
| (c) Beginning June 1, 2005, a tax imposed under this | 21 |
| Section is due if the transfer is made by one or more related | 22 |
| transactions or involves one or more persons or entities, | 23 |
| regardless of whether a document is recorded.
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| (Source: P.A. 89-626, eff. 8-9-96.)
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| Section 99. Effective date. This Act takes effect June 1, | 26 |
| 2005. |
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