Bill Text: IL SB3243 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Code. Provides that a home rule municipality with a population in excess of 1,000,000 may restructure the rates of an existing real estate transfer tax to specified amounts. Provides that if the municipality increases the real estate transfer tax rates as provided in this subsection, then of the entire proceeds received from the real estate transfer tax, 75% shall be dedicated to the city's general budget and 25% shall be dedicated to housing and services to combat homelessness.

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3243 Detail]

Download: Illinois-2019-SB3243-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3243 Introduced 2/11/2020, by Sen. Ram Villivalam - Robert Peters - Ann Gillespie - Celina Villanueva - Mattie Hunter, et al. SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-3-19
Amends the Illinois Municipal Code. Provides that a home rule municipality with a population in excess of 1,000,000 may restructure the rates of an existing real estate transfer tax to specified amounts. Provides that if the municipality increases the real estate transfer tax rates as provided in this subsection, then of the entire proceeds received from the real estate transfer tax, 75% shall be dedicated to the city's general budget and 25% shall be dedicated to housing and services to combat homelessness.
LRB101 16309 AWJ 65682 b
FISCAL NOTE ACT MAY APPLY HOME RULE NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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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
changing Section 8-3-19 as follows:
(65 ILCS 5/8-3-19)
Sec. 8-3-19. 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
municipality 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, and 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

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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
municipality. The notice shall be published in 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.
(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 municipality 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.

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(d) Except as provided in subsection (i), no home rule
municipality shall impose a new real estate transfer tax after
the effective date of this amendatory Act of 1996 without prior
approval by referendum. Except as provided in subsection (i),
no home rule municipality shall impose an increase of the rate
of a current real estate transfer tax without prior approval by
referendum. A home rule municipality 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 municipality shall, by resolution,
provide for submission of the proposition to the voters. The
home rule municipality 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 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)?". If the
proposition is to increase an existing real estate transfer
tax, it shall be in the following form: "Shall (name of

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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).".
If a majority of the electors voting on the proposition
vote in favor of it, the municipality may impose or increase
the municipal real estate transfer tax or fee.
(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 municipality 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 transfer taxes adopted by a municipality 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.
(i) Within 6 months after the effective date of this

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amendatory Act of the 95th General Assembly, by ordinance
adopted without a referendum, a home rule municipality with a
population in excess of 1,000,000 may increase the rate of an
existing real estate transfer tax by a rate of up to $1.50 for
each $500 of value or fraction thereof, or in the alternative
may impose a real estate transfer tax at a rate of up to $1.50
for each $500 of value or fraction thereof, which may be on the
buyer or seller of real estate, or jointly and severally on
both, for the sole purpose of providing financial assistance to
the Chicago Transit Authority. All amounts collected under such
supplemental tax, after fees for costs of collection, shall be
provided to the Chicago Transit Authority pursuant to an
intergovernmental agreement as promptly as practicable upon
their receipt. Such municipality shall file a copy of any
ordinance imposing or increasing such tax with the Illinois
Department of Revenue and shall file a report with the
Department each month certifying the amount paid to the Chicago
Transit Authority in the previous month from the proceeds of
such tax.
(j) Within 6 months after the effective date of this
amendatory Act of the 101st General Assembly, by ordinance
adopted without a referendum, a home rule municipality with a
population in excess of 1,000,000 may restructure the rates of
an existing real estate transfer tax to: $2.75 for each $500 of
transfer price, or fraction thereof, for consideration from $1
up to $500,000; $4.75 for each $500 of transfer price, or

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fraction thereof, for consideration from $500,000.01 up to
$1,000,000; a $7.50 for every $500 of transfer price, or
fraction thereof, for consideration from $1,000,000.01 up to
$3,000,000; $14.00 for every $500 of transfer price, or
fraction thereof, for real estate consideration from
$3,000,000.01 to up to $10 million; and $20.00 for every $500
of transfer price, or fraction thereof, for consideration over
$10 million which may be on the buyer or seller of real estate,
or jointly and severally on both.
If the municipality increases the real estate transfer tax
rates as provided in this subsection, then of the entire
proceeds received from the real estate transfer tax imposed
under this Section, 75% shall be dedicated to the city's
general budget and 25% shall be dedicated to housing and
services to combat homelessness.
(Source: P.A. 95-708, eff. 1-18-08.)