Illinois General Assembly - Bill Status for SB1883

Amends the Real Estate Transfer Tax Law in the Property Tax Code. Provides that the tax is also imposed on the privilege of transferring a controlling interest in a real estate entity. Imposes the tax whether or not a document is recorded. Amends the Illinois Municipal Code and the Counties Code with respect to home rule real estate transfer taxes. Provides that those taxes may be imposed or increased by referendum to the same extent as the State tax. Amends the Stock, Commodity, or Options Transactions Tax Exemption Act. Provides that nothing in the Act shall be construed to prohibit or otherwise invalidate any real estate transfer tax or fee authorized or permitted by law. Effective immediately.

Changes the definition of "real estate entity" to remove a provision limiting the definition to real property located in Illinois. Adds that the State-imposed real estate transfer tax is due if the transfer involves one or more persons or entities. Allows an exemption from the State-imposed real estate transfer tax to the extent of the corporate franchise tax imposed under the Business Corporation Act of 1983 and paid by the real estate entity as a result of the transfer.

Deletes everything after the enacting clause. Reinserts the provisions of the bill as introduced along with the provisions of Senate Amendment No. 1, with changes as follows. In the Real Estate Transfer Tax Law in the Property Tax Code, removes language defining "controlling interest" to include the right of one or of several persons to receive, at the time of distribution, 50% or more of the income or profits of a real estate entity. In provisions imposing a real estate transfer tax in the Property Tax Code, the Counties Code, and the Illinois Municipal Code, provides that the tax is imposed on the privilege of transferring a beneficial interest in real property (now, imposed on the privilege of transferring a beneficial interest in real property that is the subject of a land trust). Defines "beneficial interest". Further amends the Stock, Commodity, or Options Transaction Tax Exemption Act to provide that the new language providing that nothing in the Act shall be construed to prohibit or invalidate a real estate transfer tax or fee otherwise authorized is intended as a clarification and not as a change to existing law. Further amends the Counties Code and the Illinois Municipal Code to provide that any real estate transfer taxes that were imposed by a county or municipality at any time prior to the effective date of this amendatory Act are specifically authorized, permitted, and validated. Makes other changes. Effective immediately.

Deletes everything after the enacting clause. Amends the Real Estate Transfer Tax Law in the Property Tax Code. Makes a technical change in the definitions Section.

Deletes everything after the enacting clause. Reinserts the provisions of the bill as engrossed, making changes as follows: Changes the Real Estate Transfer Tax Law in the Property Tax Code. Defines "controlling interest" to mean more than 50% (now, 50% or more) of the fair market value of all ownership interests or beneficial interests in a real estate entity. Provides that the tax is imposed on the transfer of real estate and beneficial interests in real estate located in Illinois and on the transfer of a controlling interest in a real estate entity owning property located in Illinois. Provides that the transfer declaration shall state the value of the real property or beneficial interest in real property located in Illinois that is transferred (now, the full consideration for the property or interest in real property that is transferred). Makes changes in the Counties Code and the Illinois Municipal Code with respect to the real estate transfer tax imposed by counties and municipalities. Authorizes amendments to the tax if the amendment does not increase the rate of the tax or add transactions on which the tax is imposed (engrossed bill, only if the amendment does not increase the rate of the tax). Replaces language validating any real estate transfer tax imposed by a county or municipality before the effective date of this amendatory Act with language stating that any transfer taxes adopted prior to January 17, 1997 (the effective date of the Public Act creating these provisions) and any amendments adopted in accordance with law after that date are not preempted by this amendatory Act. Effective October 1, 2003.

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