REAL ESTATE TRANSFER TAX Senate SponsorsSen. Emil Jones, Jr.-Patrick Welch and Mattie Hunter-Jeffrey M. Schoenberg-Terry Link House Sponsors(Rep. Barbara Flynn Currie-Sidney H. Mathias and Lou Lang) 1/22/2004SenatePublic Act . . . . . . . . . 93-0657 35 ILCS 200/31-535 ILCS 200/31-1035 ILCS 200/31-2035 ILCS 200/31-2535 ILCS 820/3 new55 ILCS 5/5-1031.165 ILCS 5/8-3-19Amends 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.Senate Committee Amendment No. 1 Adds reference to:35 ILCS 200/31-46 newChanges 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.Fiscal Note (S-AM 1) (Dept of Commerce and Community Affairs) SB 1883 (SA#1) does not incur a fiscal impact on DCCA. While the bill as amended contains certain provisions that are permissive in nature, the fiscal impact on units of local government cannot be estimated at this time. Fiscal Note (SC-AM 1) (Illinois State Board of Education) No fiscal impact on the State Board of Education. To the extent the bill increases or decreases local revenues, the bill will impact local school districts. State Mandates Fiscal Note (SC-AM 1) (Illinois State Board of Education) This legislation does not constitute a State Mandate on local school districts.Senate Floor Amendment No. 2 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.State Mandates Fiscal Note (S-AM1) (Community College Board) SB 1883 may create a state mandate. The fiscal impact on the community college system is unknown. There is no fiscal impact on the Community College Board.Housing Affordability Impact Note (Housing Development Authority) No fiscal impact.House Amendment No. 1 (Tabled 5-31-2003) Deletes reference to:35 ILCS 200/31-1035 ILCS 200/31-2035 ILCS 200/31-2535 ILCS 200/31-46 new35 ILCS 820/3 new55 ILCS 5/5-1031.165 ILCS 5/8-3-19Deletes 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.House Amendment No. 2 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.House Amendment No. 4 Deletes the effective date. 2/20/2003SenateFiled with Secretary by Sen. Emil Jones, Jr. 2/20/2003SenateFirst Reading 2/20/2003SenateReferred to Rules 2/27/2003SenateAssigned to Revenue 3/6/2003SenatePostponed - Revenue 3/11/2003SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. Patrick Welch; -E. Jones 3/11/2003SenateSenate Committee Amendment No. 1 Referred to Rules 3/11/2003SenateChief Co-Sponsor Changed to Sen. Patrick Welch 3/12/2003SenateSenate Committee Amendment No. 1 Rules Refers to Revenue 3/12/2003SenateSenate Committee Amendment No. 1 Adopted 3/13/2003SenateDo Pass as Amended Revenue; 008-002-000 3/13/2003SenatePlaced on Calendar Order of 2nd Reading March 18, 2003 3/18/2003SenateHousing Affordability Impact Note Requested by Sen. Chris Lauzen 3/18/2003SenateFiscal Note Requested by Sen. Chris Lauzen 3/24/2003SenateAdded as Co-Sponsor Sen. Mattie Hunter 3/25/2003SenateFiscal Note Filed as Amended with Committee Amendment No. 1 4/1/2003SenateFiscal Note Filed as Amended with Committee Amendment No. 1 from the Illinois State Board of Education 4/1/2003SenateState Mandates Fiscal Note Filed as Amended with Committee Amendment No. 1 from the Illinois State Board of Education 4/1/2003SenateSenate Floor Amendment No. 2 Filed with Secretary by Sen. Emil Jones, Jr. 4/1/2003SenateSenate Floor Amendment No. 2 Referred to Rules 4/2/2003SenateSenate Floor Amendment No. 2 Rules Refers to Revenue 4/2/2003SenateSenate Floor Amendment No. 2 Be Adopted Revenue; 006-001-000 4/2/2003SenateSecond Reading 4/2/2003SenateSenate Floor Amendment No. 2 Adopted; E. Jones 4/2/2003SenatePlaced on Calendar Order of 3rd Reading April 3, 2003 4/3/2003SenateState Mandates Fiscal Note Filed as amended with Committee Amendment No. 1 from the Illinois Community College Board 4/4/2003SenateThird Reading Deadline Extended - Rule 2-10(e) to April 9, 2003. 4/8/2003SenateAdded as Chief Co-Sponsor Sen. Jeffrey M. Schoenberg 4/8/2003SenateThird Reading - Passed; 044-010-000 4/8/2003HouseArrived in House 4/8/2003HousePlaced on Calendar Order of First Reading 4/17/2003HouseChief House Sponsor Rep. Barbara Flynn Currie 4/29/2003HouseFirst Reading 4/29/2003HouseReferred to Rules Committee 5/1/2003HouseAssigned to Revenue Committee 5/2/2003HouseCommittee/3rd Reading Deadline Extended-Rule 9(b); May 31, 2003 5/6/2003HouseAdded Alternate Co-Sponsor Rep. Lou Lang 5/7/2003HouseHousing Affordability Impact Note Filed 5/9/2003HouseHouse Amendment No. 1 Filed with Clerk by Revenue Committee 5/9/2003HouseHouse Amendment No. 1 Adopted in Revenue Committee; by Voice Vote 5/9/2003HouseDo Pass as Amended / Short Debate Revenue Committee; 007-000-000 5/9/2003HousePlaced on Calendar 2nd Reading - Short Debate 5/23/2003HouseThird Reading/Final Action Deadline Extended-9(b) May 31, 2003 5/27/2003HouseHouse Amendment No. 1 Motion Filed Rep. Barbara Flynn Currie; to Table House Amendment No. 1 5/27/2003HouseHouse Amendment No. 1 Motion Referred to Rules Committee 5/28/2003HouseHouse Amendment No. 1 Motion Referred to Revenue Committee 5/29/2003HouseHouse Amendment No. 1 Motion to Table Recommends be Adopted Revenue Committee; 009-000-000 5/29/2003HouseHouse Amendment No. 2 Filed with Clerk by Rep. Barbara Flynn Currie 5/29/2003HouseHouse Amendment No. 2 Referred to Rules Committee 5/29/2003HouseSecond Reading - Short Debate 5/29/2003HouseHeld on Calendar Order of Second Reading - Short Debate 5/30/2003HouseHouse Amendment No. 2 Recommends Be Adopted Rules Committee; 004-000-000 5/31/2003HouseHouse Amendment No. 1 Motion to Table Amendment - Prevailed 116-000-000 5/31/2003HouseHouse Amendment No. 2 Adopted by Voice Vote 5/31/2003HousePlaced on Calendar Order of 3rd Reading - Short Debate 5/31/2003HouseThird Reading - Consideration Postponed 5/31/2003HousePlaced on Calendar - Consideration Postponed 6/1/2003HouseRule 19(a) / Re-referred to Rules Committee 11/19/2003HouseApproved for Consideration Rules Committee; 003-002-000 11/19/2003HousePlaced on Calendar - Consideration Postponed 11/19/2003HouseHouse Amendment No. 3 Filed with Clerk by Rep. Barbara Flynn Currie 11/19/2003HouseHouse Amendment No. 3 Referred to Rules Committee 11/19/2003HouseRecalled to Second Reading - Short Debate 11/19/2003HouseHeld on Calendar Order of Second Reading - Short Debate 11/19/2003HouseHouse Amendment No. 4 Filed with Clerk by Rep. Barbara Flynn Currie 11/19/2003HouseHouse Amendment No. 4 Referred to Rules Committee 11/20/2003HouseHouse Amendment No. 4 Recommends Be Adopted Rules Committee; 005-000-000 11/20/2003HouseAdded Alternate Chief Co-Sponsor Rep. Sidney H. Mathias 11/20/2003HouseHouse Amendment No. 4 Adopted by Voice Vote 11/20/2003HousePlaced on Calendar Order of 3rd Reading - Short Debate 11/20/2003HouseThird Reading - Short Debate - Passed 064-049-000 11/20/2003SenateSecretary's Desk - Concurrence House Amendment(s) 02,04 11/20/2003SenatePlaced on Calendar Order of Concurrence House Amendment(s) 02,04 - November 21, 2003 11/20/2003SenateHouse Amendment No. 2 Motion to Concur Filed with Secretary Sen. Emil Jones, Jr. 11/20/2003SenateHouse Amendment No. 2 Motion to Concur Referred to Rules 11/20/2003SenateHouse Amendment No. 4 Motion to Concur Filed with Secretary Sen. Emil Jones, Jr. 11/20/2003SenateHouse Amendment No. 4 Motion to Concur Referred to Rules 11/20/2003SenateHouse Amendment No. 2 Motion to Concur Rules Referred to Revenue 11/20/2003SenateHouse Amendment No. 4 Motion to Concur Rules Referred to Revenue 11/20/2003SenateAdded as Chief Co-Sponsor Sen. Terry Link 11/20/2003SenateHouse Amendment No. 2 Motion to Concur Be Adopted Revenue; 008-002-000 11/20/2003SenateHouse Amendment No. 4 Motion to Concur Be Adopted Revenue; 008-002-000 11/21/2003SenateHouse Amendment No. 2 Senate Concurs 034-018-000 11/21/2003SenateHouse Amendment No. 4 Senate Concurs 034-018-000 11/21/2003SenatePassed Both Houses 12/19/2003SenateSent to the Governor 1/22/2004SenateGovernor Approved 1/22/2004SenateEffective Date June 1, 2004 1/22/2004SenatePublic Act . . . . . . . . . 93-0657