94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2903


 
Introduced 1/20/2006, by Sen. Chris Lauzen
 
SYNOPSIS AS INTRODUCED:
 		
















35 ILCS 200/31-5




35 ILCS 200/31-60









    Amends the Real Estate Transfer Tax Law in the Property Tax Code. Provides that the definition of "value" includes the amount of any special service assessment on the real property. Authorizes chief county assessment officials and township or multi-township assessors to perform audits of transfer declarations. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY


HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB2903

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    AN ACT concerning revenue.

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


 
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    Section 5. The Property Tax Code is amended  by changing 
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Sections 31-5 and 31-60 as follows:
 
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    (35 ILCS 200/31-5)

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    Sec. 31-5. Definitions. 

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    "Recordation" includes the issuance of
certificates of 
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title by Registrars of Title under the Registered Titles

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(Torrens) Act pursuant to the filing of deeds or trust 
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documents for that
purpose, as well as the recording of deeds 
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or trust documents by recorders.


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    "Department" means the Department of Revenue.


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    "Person" means any natural individual, firm, partnership, 
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association,
joint stock company, joint adventure, public or 
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private corporation, limited
liability company, or a receiver, 
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executor, trustee, guardian or other
representative appointed 
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by order of any court.


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    "Value" means the amount of the full actual consideration 
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for the real
property or the beneficial interest in real 
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property located in Illinois, including the
amount of any lien 
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on the real property assumed by the transferee.
"Value" also 
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includes the amount of any special service assessment on the 
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real property.


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    "Trust document" means a document required to be recorded 
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under the Land
Trust Recordation and Transfer Tax Act and, 
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beginning June 1, 2005, also means any document relating to the 
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transfer of a taxable beneficial interest under this Article.


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    "Beneficial interest" includes, but is not limited to:

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        (1) the beneficial interest in an Illinois land trust;

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        (2) the lessee interest in a ground lease (including 
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    any interest of the
lessee in the related improvements) 
 


 






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    that provides for a term of 30 or more
years
when all 
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    options to renew or extend are included, whether or not any 
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    portion of
the term has expired; or

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        (3) the indirect interest in real property as reflected 
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    by a controlling
interest in a real estate entity.


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    "Controlling interest" means more than 50% of the
fair

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market value of all ownership interests or beneficial interests 
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in a real
estate entity.

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    "Real estate entity" means any person
including, but not

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limited to, any partnership, corporation, limited liability 
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company, trust,
other entity, or
multi-tiered
entity, that 
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exists or acts substantially for the purpose of holding 
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directly
or indirectly title to or
beneficial interest in real 
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property.
There is a rebuttable presumption
that
an entity is a 
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real estate entity if it owns, directly or indirectly, real

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property
having a fair market value greater than 75% of the 
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total fair market
value of all of the
entity's assets, 
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determined without deduction for any mortgage, lien, or

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encumbrance.


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(Source: P.A. 92-651, eff. 7-11-02; 93-657, eff. 6-1-04; 
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93-1099, eff. 6-1-05.)

 



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    (35 ILCS 200/31-60)



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    Sec. 31-60. Check for violations. 
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    (a) The Department shall conduct spot checks
or 
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investigations of declarations required to be filed by this 
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Article and
may forward information of violations to the 
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State's Attorney of
the county
where the violations occur for 
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prosecution and collection of taxes.

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    (b) The chief county assessment officer and the township 
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assessor or multi-township assessor may conduct an audit of any 
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declaration required to be filed by this Article to determine 
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whether the declaration conforms to the requirements of this 
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Article, including the requirement that the value of the 
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property include the amount of any special service assessment 
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on the property.

 


 






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(Source: P.A. 91-555, eff. 1-1-00.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.