(55 ILCS 5/5-1031.1)
Home rule real estate transfer taxes.
(a) After the effective date of this amendatory Act of the 93rd General
Assembly and subject
to this Section, a home rule county may impose or increase a tax or other fee
on the privilege of transferring title to real estate, on the privilege of transferring a
beneficial interest in real property,
on the privilege of transferring a controlling interest in a real estate
entity, as the terms "beneficial interest", "controlling interest", and "real
estate entity" are
defined in Article 31 of the
Property Tax Code. Such
a tax or
other fee shall hereafter be referred to as a
real estate transfer tax.
(b) Before adopting a resolution to submit the question of imposing or
increasing a real estate transfer tax to referendum, the corporate authorities
shall give public notice of and hold a public hearing on the intent to submit
the question to referendum. This hearing may be part of a regularly scheduled
meeting of the corporate authorities. The
notice shall be published not more than 30 nor less than 10 days prior to the
hearing in a newspaper of general circulation within the county. The notice
shall be published in the following form:
Notice of Proposed (Increased) Real Estate Transfer
(c) A notice that includes any information not specified and required by
this Section is an invalid notice. All hearings shall be open to the public.
At the public hearing, the corporate authorities of the county shall explain
the reasons for the proposed or increased real estate transfer tax and shall
permit persons desiring to be heard an opportunity to present testimony within
reasonable time limits determined by the corporate authorities. A copy of the
proposed ordinance shall be made available to the general public for inspection
before the public hearing.
(d) No home rule county shall impose a new real estate transfer tax after
the effective date of this amendatory Act of 1996 without prior approval by
referendum. No home rule county
shall impose an increase of the rate of a current real estate transfer tax
without prior approval by referendum. A home rule county may impose a new real
estate transfer tax or may increase an existing real estate transfer tax
with prior referendum approval. The referendum shall be conducted as provided
in subsection (e).
An existing ordinance or resolution imposing a real estate transfer tax may
be amended without approval by referendum if the amendment does not increase
the rate of the tax or add transactions on which the tax is imposed.
(e) The home rule county shall, by resolution, provide for submission
of the proposition to the voters. The home rule county shall certify
the resolution and the proposition to the proper election officials in
accordance with the general election law. If the proposition is to impose
a new real estate transfer tax, it shall be in substantially the following
form: "Shall (name of county) 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)?". If the
proposition is to increase an existing real estate transfer tax, it shall
be in the following form: "Shall (name of county) impose a real estate
transfer tax increase of (percent increase) to establish a new real estate
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).".
If a majority of the electors voting on the proposition vote in favor of
it, the county may impose or increase the real estate transfer tax.
(f) Nothing in this amendatory Act of 1996 shall limit the purposes for
which real estate transfer tax revenues may be collected or expended.
(g) A home rule county may not impose real estate
transfer taxes other than as authorized by this Section. This Section is a
denial and limitation of home rule powers and functions under subsection (g)
of Section 6 of Article VII of the Illinois Constitution.
(h) Notwithstanding subsection (g) of this Section, any real estate
adopted by a county at any time prior to January 17, 1997 (the effective date
of Public Act 89-701)
and any amendments to any existing real estate transfer tax ordinance adopted
after that date, in accordance with the law in effect at the time of the
adoption of the amendments,
are not preempted by this amendatory Act of the 93rd General Assembly.
(Source: P.A. 93-657, eff. 6-1-04