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1 | AN ACT in relation to taxes.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||
5 | Sections 31-5, 31-10, and 31-20 as follows: | ||||||
6 | (35 ILCS 200/31-5)
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7 | (Text of Section after amendment by P.A. 93-657 ) | ||||||
8 | Sec. 31-5. Definitions.
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9 | "Recordation" includes the issuance of
certificates of | ||||||
10 | title by Registrars of Title under the Registered Titles
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11 | (Torrens) Act pursuant to the filing of deeds or trust | ||||||
12 | documents for that
purpose, as well as the recording of deeds | ||||||
13 | or trust documents by recorders.
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14 | "Department" means the Department of Revenue.
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15 | "Person" means any natural individual, firm, partnership, | ||||||
16 | association,
joint stock company, joint adventure, public or | ||||||
17 | private corporation, limited
liability company, or a receiver, | ||||||
18 | executor, trustee, guardian or other
representative appointed | ||||||
19 | by order of any court.
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20 | "Value" means the amount of the full actual consideration | ||||||
21 | for the real
property or the beneficial interest in real | ||||||
22 | property located in Illinois , including the
amount of any lien | ||||||
23 | on the real property assumed by the transferee
buyer .
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24 | "Trust document" means a document required to be recorded | ||||||
25 | under the Land
Trust Recordation and Transfer Tax Act and, | ||||||
26 | beginning June 1, 2005, also means any document relating to the | ||||||
27 | transfer of a taxable beneficial interest under this Article .
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28 | "Beneficial interest" includes, but is not limited to:
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29 | (1) the beneficial interest in an Illinois land trust;
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30 | (2) the lessee interest in a ground lease (including | ||||||
31 | any interest of the
lessee in the related improvements) | ||||||
32 | that provides for a term of 30 or more
years
when all |
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1 | options to renew or extend are included, whether or not any | ||||||
2 | portion of
the term has expired; or
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3 | (3) the indirect interest in real property as reflected | ||||||
4 | by a controlling
interest in a real estate entity.
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5 | "Controlling interest" means more than 50% of the
fair
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6 | market value of all ownership interests or beneficial interests | ||||||
7 | in a real
estate entity.
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8 | "Real estate entity" means any person
including, but not
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9 | limited to, any partnership, corporation, limited liability | ||||||
10 | company, trust,
other entity, or
multi-tiered
entity, that | ||||||
11 | exists or acts substantially for the purpose of holding | ||||||
12 | directly
or indirectly title to or
beneficial interest in real | ||||||
13 | property.
There is a rebuttable presumption
that
an entity is a | ||||||
14 | real estate entity if it owns, directly or indirectly, real
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15 | property
having a fair market value greater than 75% of the | ||||||
16 | total fair market
value of all of the
entity's assets, | ||||||
17 | determined without deduction for any mortgage, lien, or
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18 | encumbrance.
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19 | (Source: P.A. 92-651, eff. 7-11-02; 93-657, eff. 6-1-04.)
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20 | (35 ILCS 200/31-10)
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21 | (Text of Section after amendment by P.A. 93-657 ) | ||||||
22 | Sec. 31-10. Imposition of tax. A tax is imposed on the | ||||||
23 | privilege of
transferring title to real estate located in | ||||||
24 | Illinois, on the privilege of transferring a beneficial | ||||||
25 | interest in
real
property located in Illinois,
and on the | ||||||
26 | privilege of transferring a controlling interest in a real | ||||||
27 | estate
entity owning property located in Illinois,
at the rate | ||||||
28 | of 50ยข for each $500 of
value or fraction of $500 stated in the | ||||||
29 | declaration required by Section 31-25.
If, however, the | ||||||
30 | transferring document states that the real estate, beneficial | ||||||
31 | interest, or
controlling interest
is
transferred subject to a | ||||||
32 | mortgage, the amount of the mortgage remaining
outstanding at | ||||||
33 | the time of transfer shall not be included in the basis of
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34 | computing the tax.
The tax is due if the transfer is made
by | ||||||
35 | one or more related transactions or involves one or more |
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1 | persons or entities
and whether or
not a document is recorded.
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2 | (Source: P.A. 93-657, eff. 6-1-04.)
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3 | (35 ILCS 200/31-20)
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4 | (Text of Section after amendment by P.A. 93-657 ) | ||||||
5 | Sec. 31-20. Affixing of stamps. Payment of the tax shall | ||||||
6 | be evidenced by
revenue stamps in the amount required to show | ||||||
7 | full payment of the tax imposed
by Section 31-10. Except as | ||||||
8 | provided in Section 31-45, a deed, document
transferring a | ||||||
9 | controlling interest in real property,
or trust document
shall | ||||||
10 | not be accepted for filing by any recorder or registrar of | ||||||
11 | titles unless
revenue stamps in the required amount have been | ||||||
12 | purchased from the recorder or
registrar of titles of the | ||||||
13 | county where the deed, document transferring a
controlling | ||||||
14 | interest in real property,
or trust document is being
filed for | ||||||
15 | recordation. The revenue stamps shall be affixed to the deed,
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16 | document transferring a controlling interest in real property,
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17 | or
trust document by the recorder or the registrar of titles | ||||||
18 | either before or
after recording as requested by the grantee. | ||||||
19 | The Department may prescribe a form to which stamps must be | ||||||
20 | affixed that a transferee must file for recordation at the time | ||||||
21 | a declaration is presented if a transferring document is not | ||||||
22 | presented for recordation within 3 business days after the | ||||||
23 | transfer is effected. A person using or affixing a
revenue | ||||||
24 | stamp shall cancel it and so deface it as to render it unfit | ||||||
25 | for reuse
by marking it with his or her initials and the day, | ||||||
26 | month and year when the
affixing occurs. The marking shall be | ||||||
27 | made by writing or stamping in
indelible ink or by perforating | ||||||
28 | with a machine or punch. However, the revenue
stamp shall not | ||||||
29 | be so defaced as to prevent ready determination of its
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30 | denomination and genuineness.
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31 | (Source: P.A. 93-657, eff. 6-1-04.)
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32 | Section 10. The Stock, Commodity, or Options Transaction
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33 | Tax Exemption Act is amended by changing Section 3 as follows: |
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1 | (35 ILCS 820/3)
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2 | (This Section may contain text from a Public Act with a | ||||||
3 | delayed effective date ) | ||||||
4 | Sec. 3. Construction of Act. Nothing in this Act shall be | ||||||
5 | construed as
prohibiting or
otherwise invalidating any real | ||||||
6 | estate transfer tax or fee authorized
or permitted by
Section | ||||||
7 | 31-10 of the Property Tax Code,
Sections 5-1031 and
Section
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8 | 5-1031.1 of the Counties
Code,
or
Section 8-3-19 of the | ||||||
9 | Illinois Municipal Code. This Section is intended as a
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10 | clarification
and not as a change to existing law.
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11 | (Source: P.A. 93-657, eff. 6-1-04.) | ||||||
12 | Section 15. The Counties Code is amended by changing | ||||||
13 | Section 5-1031 as follows:
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14 | (55 ILCS 5/5-1031) (from Ch. 34, par. 5-1031)
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15 | Sec. 5-1031. County real estate transfer tax. | ||||||
16 | (a) The county board of a
county may impose a tax upon the | ||||||
17 | privilege of transferring title to real
estate, as represented | ||||||
18 | by the deed that is filed for recordation, and upon
the | ||||||
19 | privilege of transferring a beneficial interest in a land trust | ||||||
20 | holding
legal title to real estate located in such county as | ||||||
21 | represented by the
trust document that is filed for | ||||||
22 | recordation, at the rate of 25 cents for
each $500 of value or | ||||||
23 | fraction thereof stated in the declaration required
by Section | ||||||
24 | 31-25 of the Property Tax Code. If, however, the real
estate is | ||||||
25 | transferred subject to a mortgage, the amount of the mortgage
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26 | remaining outstanding at the time of transfer shall not be | ||||||
27 | included in the
basis of computing the tax.
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28 | A tax imposed pursuant to this Section shall be collected | ||||||
29 | by the recorder
or registrar of titles of the county prior to | ||||||
30 | recording the
deed or trust document or registering the title | ||||||
31 | subject to the tax.
All deeds or trust documents exempted in | ||||||
32 | Section 31-45 of the Property Tax
Code shall also be exempt | ||||||
33 | from any tax imposed pursuant to
this Section. A tax imposed | ||||||
34 | pursuant to this Section shall be in addition
to all other |
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1 | occupation and privilege taxes imposed by the State of
Illinois | ||||||
2 | or any municipal corporation or political subdivision thereof. | ||||||
3 | (b) The county board may impose a tax at the same rate on | ||||||
4 | the transfer of a beneficial interest, as defined in Section | ||||||
5 | 31-5 of the Property Tax Code. If, however, the transferring | ||||||
6 | document states that the real estate or beneficial interest is | ||||||
7 | transferred subject to a mortgage, then the amount of the | ||||||
8 | mortgage remaining outstanding at the time of transfer shall | ||||||
9 | not be included in the basis of computing the tax. | ||||||
10 | The tax must be paid at the time of recordation or, if a | ||||||
11 | document is not recorded, at the time of presentation of the | ||||||
12 | transfer declaration to the recorder, as provided in Section | ||||||
13 | 31-25 of the Property Tax Code. All deeds or documents relating | ||||||
14 | to the transfer of a beneficial interest exempted in Sections | ||||||
15 | 31-45 or 31-46 of the Property Tax Code are also exempt from | ||||||
16 | any tax imposed under this Section. A tax imposed under this | ||||||
17 | Section is in addition to all other occupation and privilege | ||||||
18 | taxes imposed by the State of Illinois or any municipal | ||||||
19 | corporation or political subdivision thereof. | ||||||
20 | (c) Beginning June 1, 2005, a tax imposed under this | ||||||
21 | Section is due if the transfer is made by one or more related | ||||||
22 | transactions or involves one or more persons or entities, | ||||||
23 | regardless of whether a document is recorded.
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24 | (Source: P.A. 89-626, eff. 8-9-96.)
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25 | Section 99. Effective date. This Act takes effect June 1, | ||||||
26 | 2005. |