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HB0867 Enrolled |
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LRB093 05712 SJM 05805 b |
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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, |
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| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing |
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| Sections 31-5, 31-10, and 31-20 as follows: |
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| (35 ILCS 200/31-5)
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| (Text of Section after amendment by P.A. 93-657 ) |
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| Sec. 31-5. Definitions.
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| "Recordation" includes the issuance of
certificates of |
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| title by Registrars of Title under the Registered Titles
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| (Torrens) Act pursuant to the filing of deeds or trust |
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| documents for that
purpose, as well as the recording of deeds |
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| 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, |
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| association,
joint stock company, joint adventure, public or |
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| private corporation, limited
liability company, or a receiver, |
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| executor, trustee, guardian or other
representative appointed |
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| by order of any court.
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| "Value" means the amount of the full actual consideration |
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| for the real
property or the beneficial interest in real |
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| property located in Illinois , including the
amount of any lien |
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| on the real property assumed by the transferee
buyer .
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| "Trust document" means a document required to be recorded |
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| under the Land
Trust Recordation and Transfer Tax Act and, |
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| beginning June 1, 2005, also means any document relating to the |
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| 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 |
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| any interest of the
lessee in the related improvements) |
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| that provides for a term of 30 or more
years
when all |
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HB0867 Enrolled |
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LRB093 05712 SJM 05805 b |
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| options to renew or extend are included, whether or not any |
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| portion of
the term has expired; or
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| (3) the indirect interest in real property as reflected |
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| 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 |
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| 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 |
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| company, trust,
other entity, or
multi-tiered
entity, that |
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| exists or acts substantially for the purpose of holding |
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| directly
or indirectly title to or
beneficial interest in real |
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| property.
There is a rebuttable presumption
that
an entity is a |
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| 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 |
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| total fair market
value of all of the
entity's assets, |
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| 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 ) |
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| Sec. 31-10. Imposition of tax. A tax is imposed on the |
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| privilege of
transferring title to real estate located in |
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| Illinois, on the privilege of transferring a beneficial |
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| interest in
real
property located in Illinois,
and on the |
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| privilege of transferring a controlling interest in a real |
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| estate
entity owning property located in Illinois,
at the rate |
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| of 50¢ for each $500 of
value or fraction of $500 stated in the |
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| declaration required by Section 31-25.
If, however, the |
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| transferring document states that the real estate, beneficial |
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| interest, or
controlling interest
is
transferred subject to a |
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| mortgage, the amount of the mortgage remaining
outstanding at |
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| 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 |
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| one or more related transactions or involves one or more |
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LRB093 05712 SJM 05805 b |
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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 ) |
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| Sec. 31-20. Affixing of stamps. Payment of the tax shall |
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| be evidenced by
revenue stamps in the amount required to show |
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| full payment of the tax imposed
by Section 31-10. Except as |
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| provided in Section 31-45, a deed, document
transferring a |
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| controlling interest in real property,
or trust document
shall |
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| not be accepted for filing by any recorder or registrar of |
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| titles unless
revenue stamps in the required amount have been |
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| purchased from the recorder or
registrar of titles of the |
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| county where the deed, document transferring a
controlling |
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| interest in real property,
or trust document is being
filed for |
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| 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 |
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| either before or
after recording as requested by the grantee. |
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| The Department may prescribe a form to which stamps must be |
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| affixed that a transferee must file for recordation at the time |
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| a declaration is presented if a transferring document is not |
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| presented for recordation within 3 business days after the |
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| transfer is effected. A person using or affixing a
revenue |
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| stamp shall cancel it and so deface it as to render it unfit |
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| for reuse
by marking it with his or her initials and the day, |
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| month and year when the
affixing occurs. The marking shall be |
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| made by writing or stamping in
indelible ink or by perforating |
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| with a machine or punch. However, the revenue
stamp shall not |
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| 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 |
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| delayed effective date ) |
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| Sec. 3. Construction of Act. Nothing in this Act shall be |
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| construed as
prohibiting or
otherwise invalidating any real |
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| estate transfer tax or fee authorized
or permitted by
Section |
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| 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 |
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| 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.) |
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| Section 15. The Counties Code is amended by changing |
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| 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. |
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| (a) The county board of a
county may impose a tax upon the |
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| privilege of transferring title to real
estate, as represented |
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| by the deed that is filed for recordation, and upon
the |
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| privilege of transferring a beneficial interest in a land trust |
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| holding
legal title to real estate located in such county as |
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| represented by the
trust document that is filed for |
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| recordation, at the rate of 25 cents for
each $500 of value or |
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| fraction thereof stated in the declaration required
by Section |
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| 31-25 of the Property Tax Code. If, however, the real
estate is |
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| transferred subject to a mortgage, the amount of the mortgage
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| remaining outstanding at the time of transfer shall not be |
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| included in the
basis of computing the tax.
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| A tax imposed pursuant to this Section shall be collected |
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| by the recorder
or registrar of titles of the county prior to |
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| recording the
deed or trust document or registering the title |
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| subject to the tax.
All deeds or trust documents exempted in |
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| Section 31-45 of the Property Tax
Code shall also be exempt |
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| from any tax imposed pursuant to
this Section. A tax imposed |
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| pursuant to this Section shall be in addition
to all other |
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HB0867 Enrolled |
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LRB093 05712 SJM 05805 b |
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| occupation and privilege taxes imposed by the State of
Illinois |
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| or any municipal corporation or political subdivision thereof. |
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| (b) The county board may impose a tax at the same rate on |
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| the transfer of a beneficial interest, as defined in Section |
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| 31-5 of the Property Tax Code. If, however, the transferring |
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| document states that the real estate or beneficial interest is |
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| transferred subject to a mortgage, then the amount of the |
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| mortgage remaining outstanding at the time of transfer shall |
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| not be included in the basis of computing the tax. |
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| The tax must be paid at the time of recordation or, if a |
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| document is not recorded, at the time of presentation of the |
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| transfer declaration to the recorder, as provided in Section |
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| 31-25 of the Property Tax Code. All deeds or documents relating |
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| to the transfer of a beneficial interest exempted in Sections |
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| 31-45 or 31-46 of the Property Tax Code are also exempt from |
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| any tax imposed under this Section. A tax imposed under this |
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| Section is in addition to all other occupation and privilege |
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| taxes imposed by the State of Illinois or any municipal |
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| corporation or political subdivision thereof. |
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| (c) Beginning June 1, 2005, a tax imposed under this |
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| Section is due if the transfer is made by one or more related |
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| transactions or involves one or more persons or entities, |
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| 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, |
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| 2005. |