103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3275

 

Introduced 2/6/2024, by Sen. Linda Holmes

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/31-5
35 ILCS 200/31-15

    Amends the Real Estate Transfer Tax Law in the Property Tax Code. Provides that paper revenue stamps shall be phased out by December 31, 2025. Requires counties to issue electronic revenue stamps or alternative indicia thereafter. Effective immediately.


LRB103 34185 HLH 64008 b

 

 

A BILL FOR

 

SB3275LRB103 34185 HLH 64008 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
5Sections 31-5 and 31-15 as follows:
 
6    (35 ILCS 200/31-5)
7    Sec. 31-5. Definitions.
8    "Affixed" means physically or electronically indicated.
9    "Recordation" includes the issuance of certificates of
10title by Registrars of Title under the Registered Titles
11(Torrens) Act pursuant to the filing of deeds or trust
12documents for that purpose, as well as the recording of deeds
13or trust documents by recorders.
14    "Department" means the Department of Revenue.
15    "Person" means any natural individual, firm, partnership,
16association, joint stock company, joint adventure, public or
17private corporation, limited liability company, or a receiver,
18executor, trustee, guardian or other representative appointed
19by order of any court.
20    "Revenue stamp" means physical (until December 31, 2025),
21electronic, or alternative indicia that indicates the amount
22of tax paid.
23    "Value" means the amount of the full actual consideration

 

 

SB3275- 2 -LRB103 34185 HLH 64008 b

1for the real property or the beneficial interest in real
2property located in Illinois, including the amount of any lien
3on the real property assumed by the transferee.
4    "Trust document" means a document required to be recorded
5under the Land Trust Recordation and Transfer Tax Act and,
6beginning June 1, 2005, also means any document relating to
7the transfer of a taxable beneficial interest under this
8Article.
9    "Beneficial interest" includes, but is not limited to:
10        (1) the beneficial interest in an Illinois land trust;
11        (2) the lessee interest in a ground lease (including
12    any interest of the lessee in the related improvements)
13    that provides for a term of 30 or more years when all
14    options to renew or extend are included, whether or not
15    any portion of the term has expired; or
16        (3) the indirect interest in real property as
17    reflected by a controlling interest in a real estate
18    entity.
19    "Controlling interest" means more than 50% of the fair
20market value of all ownership interests or beneficial
21interests in a real estate entity.
22    "Real estate entity" means any person including, but not
23limited to, any partnership, corporation, limited liability
24company, trust, other entity, or multi-tiered entity, that
25exists or acts substantially for the purpose of holding
26directly or indirectly title to or beneficial interest in real

 

 

SB3275- 3 -LRB103 34185 HLH 64008 b

1property. There is a rebuttable presumption that an entity is
2a real estate entity if it owns, directly or indirectly, real
3property having a fair market value greater than 75% of the
4total fair market value of all of the entity's assets,
5determined without deduction for any mortgage, lien, or
6encumbrance.
7(Source: P.A. 98-929, eff. 8-15-14.)
 
8    (35 ILCS 200/31-15)
9    Sec. 31-15. Collection of tax.
10    (a) Paper revenue stamps. The tax shall be collected by
11the recorder or registrar of titles of the county in which the
12property is situated through the sale of revenue stamps, the
13design, denominations and form of which shall be prescribed by
14the Department. The revenue stamps shall be sold by the
15Department to the recorder or registrar of titles who shall
16cause them to be sold for the purposes prescribed. The
17Department shall charge at a rate of 50¢ per $500 of value in
18units of not less than $500. The recorder or registrar of
19titles of the several counties shall sell the revenue stamps
20at a rate of 50¢ per $500 of value or fraction of $500. The
21recorder or registrar of titles may use the proceeds for the
22purchase of revenue stamps from the Department. The Department
23must establish a system to allow the recorder or registrar of
24titles to purchase the revenue stamps electronically and must
25deliver the electronically purchased stamps to the recorder or

 

 

SB3275- 4 -LRB103 34185 HLH 64008 b

1registrar of titles. Paper revenue stamps shall be phased out
2by December 31, 2025. Thereafter, all counties shall issue
3electronic revenue stamps or alternative indicia.
4    (b) Electronic revenue stamp or alternative indicia. If
5the recorder or registrar of titles uses an electronic revenue
6stamp or alternative indicia, the recorder or registrar of
7titles shall electronically file a return using an electronic
8system required by the Department and electronically remit the
9tax to the Department via a debit payment or ACH credit on or
10before the 10th day of the month following the month in which
11the tax was required to be collected. The return shall
12disclose the tax collected and other information that the
13Department may reasonably require. The return shall be filed
14using an electronic a format prescribed by the Department
15through the MyDec system or another electronic system used by
16the Department.
17    (c) The recordation of all transactions involving the sale
18of property shall require the activity to be transmitted to
19the Department through the use of the Department's electronic
20system, whether paper revenue stamps, electronic revenue
21stamps, or alternative indicia is employed.
22    If a return is not filed or the tax is not fully paid as
23required under this Section within 15 days of the required
24time period, the Department may eliminate the recorder or
25registrar of titles' ability to electronically file its
26returns and electronically remit the tax until such time as

 

 

SB3275- 5 -LRB103 34185 HLH 64008 b

1the recorder or registrar of titles fully remits the return
2and tax amount due.
3(Source: P.A. 98-929, eff. 8-15-14.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.