SB1485 95TH GENERAL ASSEMBLY

LRB095 03820 BDD 23851 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1485

Introduced 2/9/2007, by Sen. Kimberly A. Lightford

SYNOPSIS AS INTRODUCED:

65 ILCS 5/8-3-20 new

Amends the Illinois Municipal Code. Authorizes non-home rule municipalities to impose a real estate transfer tax. Requires referendum approval to impose or increase the rate of the tax. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

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

Section 5. The Illinois Municipal Code is amended by adding Section 8-3-20 as follows:

(65 ILCS 5/8-3-20 new)

Sec. 8-3-20. Non-home rule real estate transfer taxes.

(a) A non-home rule municipality may impose a real estate transfer tax in accordance with the requirements set forth under this Section.

(b) Before adopting a resolution to submit the question of imposing or increasing the rate of a real estate transfer tax to a referendum, the corporate authorities shall give public notice of and hold a public hearing on the intent to submit the question to referendum. The notice must be published in a newspaper of general circulation within the municipality not more than 30 nor less than 10 days prior to the public hearing. The notice must be published in substantially the following form:

Notice of Proposed (Increased) Real Estate Transfer Tax for (commonly known name of municipality).

A public hearing on a resolution to submit to referendum the question of a proposed (increased) real estate transfer tax for (legal name of the municipality) in an amount of (rate) to be paid by the buyer (seller) of the real estate transferred will be held on (date) at (time) at (location). The current rate of real estate transfer tax imposed by (name of municipality) is (rate). Any person desiring to appear at the public hearing and present testimony to the taxing district may do so. A notice that includes any information that is not specified and required by this Section is an invalid notice.

(c) Any hearing under this Section is open to the public and may be part of a regularly scheduled meeting of the corporate authorities. At the public hearing, the corporate authorities of the municipality must explain the reasons for the proposed or increased real estate transfer tax and must permit any person who desires to be heard an opportunity to present testimony within reasonable time limits determined by the corporate authorities. A copy of the proposed ordinance must be made available to the general public for inspection before the public hearing.

(d) The tax under this Section may not be imposed or increased until the question of imposing or increasing the tax has been submitted to the electors of the municipality at a regular election and approved by a majority of the electors voting on the question. The corporate authorities must certify the question to the proper election authority, which must submit the question at an election in accordance with the Election Code.

The election authority must submit the question to impose a new real estate transfer tax in substantially the following form:

Shall (name of municipality) impose a real estate transfer tax at a rate of (rate) to be paid by the buyer (seller) of the real estate transferred, with the revenue of the proposed transfer tax to be used for (purpose)?

The election authority must submit the question to increase a new real estate transfer tax in substantially the following form:

Shall (name of municipality) impose a real estate transfer tax increase of (percent increase) to establish a new transfer tax rate of (rate) to be paid by the buyer (seller) of the real estate transferred? The current rate of the real estate transfer tax is (rate), and the revenue is used for (purpose). The revenue from the increase is to be used for (purpose).

The election authority must record the votes as "Yes" or "No".

If a majority of the electors voting on the question vote in the affirmative, then the municipality may impose or increase the municipal real estate transfer tax.

(f) A municipality may discontinue or reduce a real estate transfer tax without referendum approval. Nothing in this Section limits the purposes for which real-estate-transfer-tax revenues may be collected or expended.

(g) For the purposes of this Section:

"Real estate transfer tax" means a tax or other fee on (i) the privilege of transferring title to real estate, (ii) on the privilege of transferring a beneficial interest in real property, and (iii) on the privilege of transferring a controlling interest in a real-estate entity.

"Beneficial interest", "controlling interest", and "real estate entity" have the definitions set forth under Article 31 of the Property Tax Code.

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