SB3227 101ST GENERAL ASSEMBLY

LRB101 20092 AWJ 69625 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3227

Introduced 2/11/2020, by Sen. Laura Fine

SYNOPSIS AS INTRODUCED:

65 ILCS 5/8-3-19.1 new

Amends the Illinois Municipal Code. Provides that a non-home rule municipality may impose a real estate transfer tax after notice, resolution, hearing, and referendum. Includes notice, resolution, hearing, and referendum requirements.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

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

Section 5. The Illinois Municipal Code is amended by adding Section 8-3-19.1 as follows:

(65 ILCS 5/8-3-19.1 new)

Sec. 8-3-19.1. Non-home rule real estate transfer taxes.

(a) A non-home rule municipality may impose or increase a tax or other fee on the privilege of transferring title to real estate, on the privilege of transferring a beneficial interest in real property, and on the privilege of transferring a controlling interest in a real estate entity, as the terms "beneficial interest", "controlling interest", and "real estate entity" are defined in Article 31 of the Property Tax Code. Such a tax or other fee shall be referred to as a "real estate transfer tax" in this Section.

(b) Before adopting a resolution to submit the question of imposing or increasing a real estate transfer tax to referendum, the corporate authorities shall give public notice of and hold a public hearing on the intent to submit the question to referendum. This hearing may be part of a regularly scheduled meeting of the corporate authorities. The notice shall be published not more than 30 nor less than 10 days prior to the hearing in a newspaper of general circulation within the municipality. The notice shall be published in the following form:

Notice of Proposed (Increased) Real Estate Transfer Tax for

(commonly known name of municipality).

A public hearing on a resolution to submit to referendum the question of a proposed (increased) real estate transfer tax for (legal name of the municipality) in an amount of (rate) to be paid by the buyer (seller) of the real estate transferred will be held on (date) at (time) at (location). The current rate of real estate transfer tax imposed by (name of municipality) is (rate).

A notice that includes any information not specified and required by this subsection is an invalid notice.

(c) Any person desiring to appear at the public hearing and present testimony to the non-home rule municipality may do so. All hearings shall be open to the public. At the public hearing, the corporate authorities of the municipality shall explain the reasons for the proposed or increased real estate transfer tax and shall permit persons desiring to be heard an opportunity to present testimony within reasonable time limits determined by the corporate authorities. A copy of the proposed ordinance shall be made available to the general public for inspection before the public hearing.

(d) A non-home rule municipality may impose a real estate transfer tax or may increase an existing real estate transfer tax with prior referendum approval. The referendum shall be conducted as provided in subsection (e). An existing ordinance or resolution imposing a real estate transfer tax may be amended without approval by referendum if the amendment does not increase the rate of the tax or add transactions on which the tax is imposed.

(e) The non-home rule municipality shall, by resolution, provide for submission of the proposition to the voters. The non-home rule municipality shall certify the resolution and the proposition to the proper election officials in accordance with the general election law. If the proposition is to impose a new real estate transfer tax, it shall be in substantially the following form:

"Shall (name of municipality) impose a real estate transfer tax at a rate of (rate) to be paid by the buyer (seller) of the real estate transferred, with the revenue of the proposed transfer tax to be used for (purpose)?".

If the proposition is to increase an existing real estate transfer tax, it shall be in the following form:

"Shall (name of municipality) impose a real estate transfer tax increase of (percent increase) to establish a new transfer tax rate of (rate) to be paid by the buyer (seller) of the real estate transferred? The current rate of the real estate transfer tax is (rate), and the revenue is used for (purpose). The revenue from the increase is to be used for (purpose)".

If a majority of the electors voting on the proposition vote in favor of it, the non-home rule municipality may impose or increase the municipal real estate transfer tax or fee.

(f) Nothing in this Section shall limit the purposes for which real estate transfer tax revenues may be collected or expended.