101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4445

 

Introduced 2/3/2020, by Rep. Eva Dina Delgado

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/31-45

    Amends the Property Tax Code. Provides that, on and after January 1, 2021, deeds representing real estate transfers of residential property from a parent to a child are exempt from the real estate transfer tax if the child's household income for the taxable year in which the transfer occurs is less than $50,000 and the property has been the child's principal place of residence for at least 10 consecutive years immediately prior to the date of the transfer. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4445LRB101 17245 HLH 66649 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 31-45 as follows:
 
6    (35 ILCS 200/31-45)
7    Sec. 31-45. Exemptions. The following deeds or trust
8documents shall be exempt from the provisions of this Article
9except as provided in this Section:
10        (a) Deeds representing real estate transfers made
11    before January 1, 1968, but recorded after that date and
12    trust documents executed before January 1, 1986, but
13    recorded after that date.
14        (b) Deeds to or trust documents relating to (1)
15    property acquired by any governmental body or from any
16    governmental body, (2) property or interests transferred
17    between governmental bodies, or (3) property acquired by or
18    from any corporation, society, association, foundation or
19    institution organized and operated exclusively for
20    charitable, religious or educational purposes. However,
21    deeds or trust documents, other than those in which the
22    Administrator of Veterans Affairs of the United States is
23    the grantee pursuant to a foreclosure proceeding, shall not

 

 

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1    be exempt from filing the declaration.
2        (c) Deeds or trust documents that secure debt or other
3    obligation.
4        (d) Deeds or trust documents that, without additional
5    consideration, confirm, correct, modify, or supplement a
6    deed or trust document previously recorded.
7        (e) Deeds or trust documents where the actual
8    consideration is less than $100.
9        (f) Tax deeds.
10        (g) Deeds or trust documents that release property that
11    is security for a debt or other obligation.
12        (h) Deeds of partition.
13        (i) Deeds or trust documents made pursuant to mergers,
14    consolidations or transfers or sales of substantially all
15    of the assets of corporations under plans of reorganization
16    under the Federal Internal Revenue Code or Title 11 of the
17    Federal Bankruptcy Act.
18        (j) Deeds or trust documents made by a subsidiary
19    corporation to its parent corporation for no consideration
20    other than the cancellation or surrender of the
21    subsidiary's stock.
22        (k) Deeds when there is an actual exchange of real
23    estate and trust documents when there is an actual exchange
24    of beneficial interests, except that that money difference
25    or money's worth paid from one to the other is not exempt
26    from the tax. These deeds or trust documents, however,

 

 

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1    shall not be exempt from filing the declaration.
2        (l) Deeds issued to a holder of a mortgage, as defined
3    in Section 15-103 of the Code of Civil Procedure, pursuant
4    to a mortgage foreclosure proceeding or pursuant to a
5    transfer in lieu of foreclosure.
6        (m) A deed or trust document related to the purchase of
7    a principal residence by a participant in the program
8    authorized by the Home Ownership Made Easy Act, except that
9    those deeds and trust documents shall not be exempt from
10    filing the declaration.
11        (n) On and after January 1, 2021, deeds representing
12    real estate transfers of residential property from a parent
13    to a child if the child's household income for the taxable
14    year in which the transfer occurs is less than $50,000 and
15    the property has been the child's principal place of
16    residence for at least 10 consecutive years immediately
17    prior to the date of the transfer. As used in this
18    paragraph (n), "household income" means the combined
19    income of the child, the child's spouse, and all persons
20    using the property as their principal place of residence.
21(Source: P.A. 100-201, eff. 8-18-17.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.