Full Text of HB3826 100th General Assembly
HB3826eng 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Municipal Code is amended by | 5 | | changing 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 effective date of this amendatory Act of the | 9 | | 93rd General
Assembly and subject
to this Section, a home rule
| 10 | | municipality may impose or increase a tax or other fee on the | 11 | | privilege of
transferring title to real estate, on the | 12 | | privilege of transferring a beneficial interest
in real | 13 | | property, and on the
privilege of
transferring a controlling | 14 | | interest in a real estate entity, as the terms
"beneficial | 15 | | interest", "controlling interest", and "real estate entity" | 16 | | are
defined in Article 31 of
the Property Tax Code. Such a tax | 17 | | or other fee shall hereafter be referred to as a
real estate | 18 | | transfer tax.
| 19 | | (b) Before adopting a resolution
to submit the question of | 20 | | imposing or
increasing a real estate transfer tax to | 21 | | referendum,
the corporate authorities shall give public notice | 22 | | of and hold a public
hearing on the intent to
submit the | 23 | | question to referendum. This hearing may be part of a regularly
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| 1 | | scheduled meeting of the corporate authorities. The
notice | 2 | | shall be published not more than 30 nor less than 10
days prior | 3 | | to the hearing in a newspaper of general circulation within the
| 4 | | municipality. The notice shall be published in the following | 5 | | 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) in | 11 | | an amount of (rate) to be paid by
the buyer (seller) of the | 12 | | real
estate transferred will be held on (date) at (time) at | 13 | | (location).
The current rate of real estate transfer tax | 14 | | imposed by (name of municipality)
is (rate).
| 15 | | Any person desiring to appear at the public hearing and | 16 | | present testimony
to the taxing district may do so.
| 17 | | (c) A notice that includes any information not specified | 18 | | and required by
this Section is an invalid notice. All hearings | 19 | | shall be open to the
public. At the public hearing, the | 20 | | corporate authorities of the
municipality shall explain the
| 21 | | reasons for the proposed or increased real estate transfer tax | 22 | | and shall permit
persons
desiring to be heard an opportunity to | 23 | | present testimony within reasonable
time limits determined by | 24 | | the corporate authorities. A copy of the proposed
ordinance | 25 | | shall be made
available to the general public for
inspection | 26 | | before the public hearing.
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| 1 | | (d) Except as provided in subsection (i), no
home rule | 2 | | municipality shall impose a new real estate transfer tax
after | 3 | | the
effective date of this amendatory Act of 1996 without prior | 4 | | approval by
referendum. Except as provided in subsection (i), | 5 | | no
home rule
municipality shall impose an increase of the rate | 6 | | of a current real estate
transfer tax without prior approval by | 7 | | referendum. A home rule municipality
may impose a new real | 8 | | estate transfer tax or may increase an existing real
estate | 9 | | transfer tax with prior referendum
approval. The referendum | 10 | | shall be
conducted as provided in subsection (e).
An existing | 11 | | ordinance or resolution imposing a real estate transfer tax may
| 12 | | be amended without approval by referendum if the amendment does | 13 | | not increase
the rate of the tax or add transactions on which | 14 | | the tax is imposed.
| 15 | | (e) The home rule municipality shall, by resolution, | 16 | | provide for submission
of the proposition to the voters. The | 17 | | home rule municipality shall certify
the resolution and the | 18 | | proposition to the proper election officials in
accordance with | 19 | | the general election law. If the proposition is to impose
a new | 20 | | real estate transfer tax, it shall be in substantially the | 21 | | following
form: "Shall
(name of municipality) impose a real | 22 | | estate transfer tax at a rate of
(rate) to be paid by the buyer | 23 | | (seller) of the real estate transferred, with
the revenue of | 24 | | the proposed transfer tax to be used for (purpose)?". If
the | 25 | | proposition is to increase an existing real estate transfer | 26 | | tax, it shall
be in
the following form: "Shall (name of |
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| 1 | | municipality) impose a real estate
transfer tax increase of | 2 | | (percent increase) to establish a new
transfer tax rate of | 3 | | (rate) to be paid by the buyer (seller) of the real
estate | 4 | | transferred? The current rate of the real estate transfer tax | 5 | | is
(rate), and the revenue is
used for (purpose). The revenue | 6 | | from the increase 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 the | 11 | | purposes for
which real estate transfer tax revenues may be | 12 | | 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 | | (h) Notwithstanding subsection (g) of this Section, any | 19 | | real estate
transfer taxes adopted
by a municipality at any | 20 | | time prior to January 17, 1997 (the effective date of
Public | 21 | | Act 89-701)
and any amendments to any existing real estate | 22 | | transfer tax ordinance adopted
after that date, in accordance | 23 | | with the law in effect at the time of the
adoption of the | 24 | | amendments,
are not preempted by this amendatory
Act of the | 25 | | 93rd General Assembly.
| 26 | | (i) Within 6 months after the effective date of this |
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| 1 | | amendatory Act of the 95th General Assembly, by ordinance | 2 | | adopted without a referendum, a home rule municipality with a | 3 | | population in excess of 1,000,000 may increase the rate of an | 4 | | existing real estate transfer tax by a rate of up to $1.50 for | 5 | | each $500 of value or fraction thereof, or in the alternative | 6 | | may impose a real estate transfer tax at a rate of up to $1.50 | 7 | | for each $500 of value or fraction thereof, which may be on the | 8 | | buyer or seller of real estate, or jointly and severally on | 9 | | both, for the sole purpose of providing financial assistance to | 10 | | the Chicago Transit Authority. All amounts collected under such | 11 | | supplemental tax, after fees for costs of collection, shall be | 12 | | provided to the Chicago Transit Authority pursuant to an | 13 | | intergovernmental agreement as promptly as practicable upon | 14 | | their receipt. Such municipality shall file a copy of any | 15 | | ordinance imposing or increasing such tax with the Illinois | 16 | | Department of Revenue and shall file a report with the | 17 | | Department each month certifying the amount paid to the Chicago | 18 | | Transit Authority in the previous month from the proceeds of | 19 | | such tax.
| 20 | | (j) A home rule municipality may not assess or collect a | 21 | | real estate transfer tax on a deed or trust document related to | 22 | | the first sale of a newly constructed and unoccupied | 23 | | residential structure for which an impact fee has been assessed | 24 | | and collected by a school district, park district, | 25 | | municipality, or county as a condition of issuance or signing | 26 | | of a plat of subdivision in which the residential structure is |
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| 1 | | located, the building permit for the residential structure, or | 2 | | an occupancy permit for the residential structure, except that | 3 | | the deed or trust document shall not be exempt from filing the | 4 | | declaration under Article 31 of the Property Tax Code. This | 5 | | subsection (j) does not apply to the City of Chicago. | 6 | | (Source: P.A. 95-708, eff. 1-18-08.)
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