Sen. Terry Link
Filed: 6/28/2004
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1 | AMENDMENT TO HOUSE BILL 867
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2 | AMENDMENT NO. ______. Amend House Bill 867 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 3. "AN ACT concerning taxes", approved January 22, | ||||||
5 | 2004, Public Act 93-657, is amended by adding Section 99 as | ||||||
6 | follows: | ||||||
7 | (P.A. 93-657, Sec. 99 new)
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8 | Sec. 99. Effective date. This Act takes effect on June 1, | ||||||
9 | 2004, except that Section 5 takes effect on July 1, 2004. | ||||||
10 | Section 5. The Property Tax Code is amended by changing | ||||||
11 | Sections 31-5, 31-10, and 31-20 as follows: | ||||||
12 | (35 ILCS 200/31-5)
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13 | (Text of Section after amendment by P.A. 93-657 ) | ||||||
14 | Sec. 31-5. Definitions.
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15 | "Recordation" includes the issuance of
certificates of | ||||||
16 | title by Registrars of Title under the Registered Titles
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17 | (Torrens) Act pursuant to the filing of deeds or trust | ||||||
18 | documents for that
purpose, as well as the recording of deeds | ||||||
19 | or trust documents by recorders.
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20 | "Department" means the Department of Revenue.
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21 | "Person" means any natural individual, firm, partnership, | ||||||
22 | association,
joint stock company, joint adventure, public or |
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1 | private corporation, limited
liability company, or a receiver, | ||||||
2 | executor, trustee, guardian or other
representative appointed | ||||||
3 | by order of any court.
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4 | "Value" means the amount of the full actual consideration | ||||||
5 | for the real
property or the beneficial interest in real | ||||||
6 | property located in Illinois , including the
amount of any lien | ||||||
7 | on the real property assumed by the transferee
buyer .
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8 | "Trust document" means a document required to be recorded | ||||||
9 | under the Land
Trust Recordation and Transfer Tax Act and, | ||||||
10 | beginning July 1, 2004, also means any document relating to the | ||||||
11 | transfer of a taxable beneficial interest under this Article .
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12 | "Beneficial interest" includes, but is not limited to:
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13 | (1) the beneficial interest in an Illinois land trust;
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14 | (2) the lessee interest in a ground lease (including | ||||||
15 | any interest of the
lessee in the related improvements) | ||||||
16 | that provides for a term of 30 or more
years
when all | ||||||
17 | options to renew or extend are included, whether or not any | ||||||
18 | portion of
the term has expired; or
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19 | (3) the indirect interest in real property as reflected | ||||||
20 | by a controlling
interest in a real estate entity.
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21 | "Controlling interest" means more than 50% of the
fair
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22 | market value of all ownership interests or beneficial interests | ||||||
23 | in a real
estate entity.
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24 | "Real estate entity" means any person
including, but not
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25 | limited to, any partnership, corporation, limited liability | ||||||
26 | company, trust,
other entity, or
multi-tiered
entity, that | ||||||
27 | exists or acts substantially for the purpose of holding | ||||||
28 | directly
or indirectly title to or
beneficial interest in real | ||||||
29 | property.
There is a rebuttable presumption
that
an entity is a | ||||||
30 | real estate entity if it owns, directly or indirectly, real
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31 | property
having a fair market value greater than 75% of the | ||||||
32 | total fair market
value of all of the
entity's assets, | ||||||
33 | determined without deduction for any mortgage, lien, or
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34 | encumbrance.
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1 | (Source: P.A. 92-651, eff. 7-11-02; 93-657, eff. 6-1-04.)
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2 | (35 ILCS 200/31-10)
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3 | (Text of Section after amendment by P.A. 93-657 ) | ||||||
4 | Sec. 31-10. Imposition of tax. A tax is imposed on the | ||||||
5 | privilege of
transferring title to real estate located in | ||||||
6 | Illinois, on the privilege of transferring a beneficial | ||||||
7 | interest in
real
property located in Illinois,
and on the | ||||||
8 | privilege of transferring a controlling interest in a real | ||||||
9 | estate
entity owning property located in Illinois,
at the rate | ||||||
10 | of 50ยข for each $500 of
value or fraction of $500 stated in the | ||||||
11 | declaration required by Section 31-25.
If, however, the | ||||||
12 | transferring document states that the real estate, beneficial | ||||||
13 | interest, or
controlling interest
is
transferred subject to a | ||||||
14 | mortgage, the amount of the mortgage remaining
outstanding at | ||||||
15 | the time of transfer shall not be included in the basis of
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16 | computing the tax.
The tax is due if the transfer is made
by | ||||||
17 | one or more related transactions or involves one or more | ||||||
18 | persons or entities
and whether or
not a document is recorded.
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19 | (Source: P.A. 93-657, eff. 6-1-04.)
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20 | (35 ILCS 200/31-20)
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21 | (Text of Section after amendment by P.A. 93-657 ) | ||||||
22 | Sec. 31-20. Affixing of stamps. Payment of the tax shall | ||||||
23 | be evidenced by
revenue stamps in the amount required to show | ||||||
24 | full payment of the tax imposed
by Section 31-10. Except as | ||||||
25 | provided in Section 31-45, a deed, document
transferring a | ||||||
26 | controlling interest in real property,
or trust document
shall | ||||||
27 | not be accepted for filing by any recorder or registrar of | ||||||
28 | titles unless
revenue stamps in the required amount have been | ||||||
29 | purchased from the recorder or
registrar of titles of the | ||||||
30 | county where the deed, document transferring a
controlling | ||||||
31 | interest in real property,
or trust document is being
filed for | ||||||
32 | recordation. The revenue stamps shall be affixed to the deed,
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1 | document transferring a controlling interest in real property,
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2 | or
trust document by the recorder or the registrar of titles | ||||||
3 | either before or
after recording as requested by the grantee. | ||||||
4 | The Department may prescribe a form to which stamps must be | ||||||
5 | affixed that a transferee must file for recordation at the time | ||||||
6 | a declaration is presented if a transferring document is not | ||||||
7 | presented for recordation within 3 business days after the | ||||||
8 | transfer is effected. A person using or affixing a
revenue | ||||||
9 | stamp shall cancel it and so deface it as to render it unfit | ||||||
10 | for reuse
by marking it with his or her initials and the day, | ||||||
11 | month and year when the
affixing occurs. The marking shall be | ||||||
12 | made by writing or stamping in
indelible ink or by perforating | ||||||
13 | with a machine or punch. However, the revenue
stamp shall not | ||||||
14 | be so defaced as to prevent ready determination of its
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15 | denomination and genuineness.
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16 | (Source: P.A. 93-657, eff. 6-1-04.)
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17 | Section 10. The Stock, Commodity, or Options Transaction
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18 | Tax Exemption Act is amended by changing Section 3 as follows: | ||||||
19 | (35 ILCS 820/3)
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20 | (This Section may contain text from a Public Act with a | ||||||
21 | delayed effective date ) | ||||||
22 | Sec. 3. Construction of Act. Nothing in this Act shall be | ||||||
23 | construed as
prohibiting or
otherwise invalidating any real | ||||||
24 | estate transfer tax or fee authorized
or permitted by
Section | ||||||
25 | 31-10 of the Property Tax Code,
Sections 5-1031 and
Section
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26 | 5-1031.1 of the Counties
Code,
or
Section 8-3-19 of the | ||||||
27 | Illinois Municipal Code. This Section is intended as a
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28 | clarification
and not as a change to existing law.
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29 | (Source: P.A. 93-657, eff. 6-1-04.) | ||||||
30 | Section 15. The Counties Code is amended by changing | ||||||
31 | Section 5-1031 as follows:
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1 | (55 ILCS 5/5-1031) (from Ch. 34, par. 5-1031)
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2 | Sec. 5-1031. County real estate transfer tax. | ||||||
3 | (a) The county board of a
county may impose a tax upon the | ||||||
4 | privilege of transferring title to real
estate, as represented | ||||||
5 | by the deed that is filed for recordation, and upon
the | ||||||
6 | privilege of transferring a beneficial interest in a land trust | ||||||
7 | holding
legal title to real estate located in such county as | ||||||
8 | represented by the
trust document that is filed for | ||||||
9 | recordation, at the rate of 25 cents for
each $500 of value or | ||||||
10 | fraction thereof stated in the declaration required
by Section | ||||||
11 | 31-25 of the Property Tax Code. If, however, the real
estate is | ||||||
12 | transferred subject to a mortgage, the amount of the mortgage
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13 | remaining outstanding at the time of transfer shall not be | ||||||
14 | included in the
basis of computing the tax.
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15 | A tax imposed pursuant to this Section shall be collected | ||||||
16 | by the recorder
or registrar of titles of the county prior to | ||||||
17 | recording the
deed or trust document or registering the title | ||||||
18 | subject to the tax.
All deeds or trust documents exempted in | ||||||
19 | Section 31-45 of the Property Tax
Code shall also be exempt | ||||||
20 | from any tax imposed pursuant to
this Section. A tax imposed | ||||||
21 | pursuant to this Section shall be in addition
to all other | ||||||
22 | occupation and privilege taxes imposed by the State of
Illinois | ||||||
23 | or any municipal corporation or political subdivision thereof. | ||||||
24 | (b) The county board may impose a tax at the same rate on | ||||||
25 | the transfer of a beneficial interest, as defined in Section | ||||||
26 | 31-5 of the Property Tax Code. If, however, the transferring | ||||||
27 | document states that the real estate or beneficial interest is | ||||||
28 | transferred subject to a mortgage, then the amount of the | ||||||
29 | mortgage remaining outstanding at the time of transfer shall | ||||||
30 | not be included in the basis of computing the tax. | ||||||
31 | The tax must be paid at the time of recordation or, if a | ||||||
32 | document is not recorded, at the time of presentation of the | ||||||
33 | transfer declaration to the recorder, as provided in Section |
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1 | 31-25 of the Property Tax Code. All deeds or documents relating | ||||||
2 | to the transfer of a beneficial interest exempted in Sections | ||||||
3 | 31-45 or 31-46 of the Property Tax Code are also exempt from | ||||||
4 | any tax imposed under this Section. A tax imposed under this | ||||||
5 | Section is in addition to all other occupation and privilege | ||||||
6 | taxes imposed by the State of Illinois or any municipal | ||||||
7 | corporation or political subdivision thereof. | ||||||
8 | (c) Beginning July 1, 2004, a tax imposed under this | ||||||
9 | Section is due if the transfer is made by one or more related | ||||||
10 | transactions or involves one or more persons or entities, | ||||||
11 | regardless of whether a document is recorded.
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12 | (Source: P.A. 89-626, eff. 8-9-96.)
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13 | Section 95. No acceleration or delay. Where this Act makes | ||||||
14 | changes in a
statute that is represented in this Act by text | ||||||
15 | that is not yet or no longer in
effect (for example, a Section | ||||||
16 | represented by multiple versions), the use of
that text does | ||||||
17 | not accelerate or delay the taking effect of (i) the changes
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18 | made by this Act or (ii) provisions derived from any other | ||||||
19 | Public Act.
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20 | Section 99. Effective date. This Act takes effect July 1, | ||||||
21 | 2004, except that Section 3 and this Section take effect upon | ||||||
22 | becoming law.".
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