HB5168 93RD GENERAL ASSEMBLY

LRB093 19302 SJM 45038 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5168

Introduced 02/05/04, by Ricca Slone

SYNOPSIS AS INTRODUCED:

35 ILCS 200/31-10
35 ILCS 200/31-35

Amends the Real Estate Transfer Tax Law in the Property Tax Code. Provides that, if the value stated in the transfer declaration is more then $250,000, then an additional tax is imposed on the privilege of transferring title to real estate located in Illinois, on the privilege of transferring a beneficial interest in real property located in Illinois, and on the privilege of transferring a controlling interest in a real estate entity owning property located in Illinois, at the rate of 50˘ for each $500 of the entire value or fraction of $500 stated in the transfer declaration (current tax is 50˘ for each $500 of value or fraction of $500). Provides that, of the moneys collected from the additional tax, 70% shall be deposited into the Open Space Lands Acquisition and Development Fund and 30% into the Natural Areas Acquisition Fund (of the current tax, 35% is deposited into the Open Space Lands Acquisition and Development Fund and 15% into the Natural Areas Acquisition Fund).

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning taxes.

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

Section 5. The Property Tax Code is amended by changing Sections 31-10 and 31-35 as follows:

(35 ILCS 200/31-10)

(Text of Section before amendment by P.A. 93-657)

Sec. 31-10. Imposition of tax. A tax is imposed on the privilege of transferring title to real estate, as represented by the deed that is filed for recordation, and on the privilege of transferring a beneficial interest in real property that is the subject of a land trust as represented by the trust document that is filed for recordation, at the rate of 50˘ for each $500 of value or fraction of $500 stated in the declaration required by Section 31-25. If, however, the deed or trust document states that the real estate is transferred subject to a mortgage the amount of the mortgage remaining outstanding at the time of transfer shall not be included in the basis of computing the tax.

(Source: P.A. 86-624; 86-925; 86-1028; 86-1475; 87-543; 88-455.)

(Text of Section after amendment by P.A. 93-657)

Sec. 31-10. Imposition of tax.

(a) A tax is imposed on the privilege of transferring title to real estate located in Illinois, on the privilege of transferring a beneficial interest in real property located in Illinois, and on the privilege of transferring a controlling interest in a real estate entity owning property located in Illinois, at the rate of 50˘ for each $500 of value or fraction of $500 stated in the declaration required by Section 31-25. If, however, the real estate, beneficial interest, or controlling interest is transferred subject to a mortgage, the amount of the mortgage remaining outstanding at the time of transfer shall not be included in the basis of computing the tax. The tax is due if the transfer is made by one or more related transactions or involves one or more persons or entities and whether or not a document is recorded.

(b) Beginning on the effective date of this amendatory Act of the 93rd General Assembly, in addition to the tax imposed under subsection (a), if the value stated in the declaration required by Section 31-25 is more than $250,000, then an additional tax is imposed on the privilege of transferring title to real estate located in Illinois, on the privilege of transferring a beneficial interest in real property located in Illinois, and on the privilege of transferring a controlling interest in a real estate entity owning property located in Illinois, at the rate of 50˘ for each $500 of the entire value or fraction of $500 stated in the declaration required by Section 31-25.

(Source: P.A. 93-657, eff. 6-1-04.)

(35 ILCS 200/31-35)

Sec. 31-35. Deposit of tax revenue.

(a) Beginning on the effective date of this amendatory Act of the 92nd General Assembly and through June 30, 2003, of the moneys collected under Section 31-15, 50% shall be deposited into the Illinois Affordable Housing Trust Fund, 20% into the Open Space Lands Acquisition and Development Fund, 5% into the Natural Areas Acquisition Fund, and 25% into the General Revenue Fund.

(b) Beginning July 1, 2003, of the moneys collected under subsection(a) of Section 31-15, 50% shall be deposited into the Illinois Affordable Housing Trust Fund, 35% into the Open Space Lands Acquisition and Development Fund, and 15% into the Natural Areas Acquisition Fund.

(c) Of the moneys collected from the additional tax imposed under subsection (b) of Section 31-15, 70% shall be deposited into the Open Space Lands Acquisition and Development Fund and 30% into the Natural Areas Acquisition Fund.

(Source: P.A. 91-555, eff. 1-1-00; 92-536, eff. 6-6-02; 92-874, eff. 7-1-03.)