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.


LRB101 20092 AWJ 69625 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3227LRB101 20092 AWJ 69625 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by adding
5Section 8-3-19.1 as follows:
 
6    (65 ILCS 5/8-3-19.1 new)
7    Sec. 8-3-19.1. Non-home rule real estate transfer taxes.
8    (a) A non-home rule municipality may impose or increase a
9tax or other fee on the privilege of transferring title to real
10estate, on the privilege of transferring a beneficial interest
11in real property, and on the privilege of transferring a
12controlling interest in a real estate entity, as the terms
13"beneficial interest", "controlling interest", and "real
14estate entity" are defined in Article 31 of the Property Tax
15Code. Such a tax or other fee shall be referred to as a "real
16estate transfer tax" in this Section.
17    (b) Before adopting a resolution to submit the question of
18imposing or increasing a real estate transfer tax to
19referendum, the corporate authorities shall give public notice
20of and hold a public hearing on the intent to submit the
21question to referendum. This hearing may be part of a regularly
22scheduled meeting of the corporate authorities. The notice
23shall be published not more than 30 nor less than 10 days prior

 

 

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1to the hearing in a newspaper of general circulation within the
2municipality. The notice shall be published in the following
3form:
 
4
Notice of Proposed (Increased) Real Estate Transfer Tax for
5
(commonly known name of municipality).
6        A public hearing on a resolution to submit to
7    referendum the question of a proposed (increased) real
8    estate transfer tax for (legal name of the municipality) in
9    an amount of (rate) to be paid by the buyer (seller) of the
10    real estate transferred will be held on (date) at (time) at
11    (location). The current rate of real estate transfer tax
12    imposed by (name of municipality) is (rate).
 
13    A notice that includes any information not specified and
14required by this subsection is an invalid notice.
15    (c) Any person desiring to appear at the public hearing and
16present testimony to the non-home rule municipality may do so.
17All hearings shall be open to the public. At the public
18hearing, the corporate authorities of the municipality shall
19explain the reasons for the proposed or increased real estate
20transfer tax and shall permit persons desiring to be heard an
21opportunity to present testimony within reasonable time limits
22determined by the corporate authorities. A copy of the proposed
23ordinance shall be made available to the general public for
24inspection before the public hearing.

 

 

SB3227- 3 -LRB101 20092 AWJ 69625 b

1    (d) A non-home rule municipality may impose a real estate
2transfer tax or may increase an existing real estate transfer
3tax with prior referendum approval. The referendum shall be
4conducted as provided in subsection (e). An existing ordinance
5or resolution imposing a real estate transfer tax may be
6amended without approval by referendum if the amendment does
7not increase the rate of the tax or add transactions on which
8the tax is imposed.
9    (e) The non-home rule municipality shall, by resolution,
10provide for submission of the proposition to the voters. The
11non-home rule municipality shall certify the resolution and the
12proposition to the proper election officials in accordance with
13the general election law. If the proposition is to impose a new
14real estate transfer tax, it shall be in substantially the
15following form:
 
16    "Shall (name of municipality) impose a real estate transfer
17    tax at a rate of (rate) to be paid by the buyer (seller) of
18    the real estate transferred, with the revenue of the
19    proposed transfer tax to be used for (purpose)?".
 
20If the proposition is to increase an existing real estate
21transfer tax, it shall be in the following form:
 
22    "Shall (name of municipality) impose a real estate transfer
23    tax increase of (percent increase) to establish a new

 

 

SB3227- 4 -LRB101 20092 AWJ 69625 b

1    transfer tax rate of (rate) to be paid by the buyer
2    (seller) of the real estate transferred? The current rate
3    of the real estate transfer tax is (rate), and the revenue
4    is used for (purpose). The revenue from the increase is to
5    be used for (purpose)".
 
6    If a majority of the electors voting on the proposition
7vote in favor of it, the non-home rule municipality may impose
8or increase the municipal real estate transfer tax or fee.
9    (f) Nothing in this Section shall limit the purposes for
10which real estate transfer tax revenues may be collected or
11expended.