Bill Text: IL HB3826 | 2017-2018 | 100th General Assembly | Engrossed

Bill Title: Amends the Illinois Municipal Code. Provides that a subdivider who has been assessed and paid impact fees on real estate in a municipality may not be assessed or charged real estate transfer taxes or fees on that same real estate. Limits home rule powers.

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Engrossed) 2018-05-11 - Rule 3-9(a) / Re-referred to Assignments [HB3826 Detail]

Download: Illinois-2017-HB3826-Engrossed.html

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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5changing Section 8-3-19 as follows:
6 (65 ILCS 5/8-3-19)
7 Sec. 8-3-19. Home rule real estate transfer taxes.
8 (a) After the effective date of this amendatory Act of the
993rd General Assembly and subject to this Section, a home rule
10municipality may impose or increase a tax or other fee on the
11privilege of transferring title to real estate, on the
12privilege of transferring a beneficial interest in real
13property, and on the privilege of transferring a controlling
14interest in a real estate entity, as the terms "beneficial
15interest", "controlling interest", and "real estate entity"
16are defined in Article 31 of the Property Tax Code. Such a tax
17or other fee shall hereafter be referred to as a real estate
18transfer tax.
19 (b) Before adopting a resolution to submit the question of
20imposing or increasing a real estate transfer tax to
21referendum, the corporate authorities shall give public notice
22of and hold a public hearing on the intent to submit the
23question to referendum. This hearing may be part of a regularly

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1scheduled meeting of the corporate authorities. The notice
2shall be published not more than 30 nor less than 10 days prior
3to the hearing in a newspaper of general circulation within the
4municipality. The notice shall be published in the following
6 Notice of Proposed (Increased) Real Estate Transfer
7 Tax for (commonly known name of municipality).
8 A public hearing on a resolution to submit to
9 referendum the question of a proposed (increased) real
10 estate transfer tax for (legal name of the municipality) in
11 an amount of (rate) to be paid by the buyer (seller) of the
12 real estate transferred will be held on (date) at (time) at
13 (location). The current rate of real estate transfer tax
14 imposed by (name of municipality) is (rate).
15 Any person desiring to appear at the public hearing and
16 present testimony to the taxing district may do so.
17 (c) A notice that includes any information not specified
18and required by this Section is an invalid notice. All hearings
19shall be open to the public. At the public hearing, the
20corporate authorities of the municipality shall explain the
21reasons for the proposed or increased real estate transfer tax
22and shall permit persons desiring to be heard an opportunity to
23present testimony within reasonable time limits determined by
24the corporate authorities. A copy of the proposed ordinance
25shall be made available to the general public for inspection
26before the public hearing.

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1 (d) Except as provided in subsection (i), no home rule
2municipality shall impose a new real estate transfer tax after
3the effective date of this amendatory Act of 1996 without prior
4approval by referendum. Except as provided in subsection (i),
5no home rule municipality shall impose an increase of the rate
6of a current real estate transfer tax without prior approval by
7referendum. A home rule municipality may impose a new real
8estate transfer tax or may increase an existing real estate
9transfer tax with prior referendum approval. The referendum
10shall be conducted as provided in subsection (e). An existing
11ordinance or resolution imposing a real estate transfer tax may
12be amended without approval by referendum if the amendment does
13not increase the rate of the tax or add transactions on which
14the tax is imposed.
15 (e) The home rule municipality shall, by resolution,
16provide for submission of the proposition to the voters. The
17home rule municipality shall certify the resolution and the
18proposition to the proper election officials in accordance with
19the general election law. If the proposition is to impose a new
20real estate transfer tax, it shall be in substantially the
21following form: "Shall (name of municipality) impose a real
22estate transfer tax at a rate of (rate) to be paid by the buyer
23(seller) of the real estate transferred, with the revenue of
24the proposed transfer tax to be used for (purpose)?". If the
25proposition is to increase an existing real estate transfer
26tax, it shall be in the following form: "Shall (name of

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1municipality) impose a real estate transfer tax increase of
2(percent increase) to establish a new transfer tax rate of
3(rate) to be paid by the buyer (seller) of the real estate
4transferred? The current rate of the real estate transfer tax
5is (rate), and the revenue is used for (purpose). The revenue
6from the increase is to be used for (purpose).".
7 If a majority of the electors voting on the proposition
8vote in favor of it, the municipality may impose or increase
9the municipal real estate transfer tax or fee.
10 (f) Nothing in this amendatory Act of 1996 shall limit the
11purposes for which real estate transfer tax revenues may be
12collected or expended.
13 (g) A home rule municipality may not impose real estate
14transfer taxes other than as authorized by this Section. This
15Section is a denial and limitation of home rule powers and
16functions under subsection (g) of Section 6 of Article VII of
17the Illinois Constitution.
18 (h) Notwithstanding subsection (g) of this Section, any
19real estate transfer taxes adopted by a municipality at any
20time prior to January 17, 1997 (the effective date of Public
21Act 89-701) and any amendments to any existing real estate
22transfer tax ordinance adopted after that date, in accordance
23with the law in effect at the time of the adoption of the
24amendments, are not preempted by this amendatory Act of the
2593rd General Assembly.
26 (i) Within 6 months after the effective date of this

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1amendatory Act of the 95th General Assembly, by ordinance
2adopted without a referendum, a home rule municipality with a
3population in excess of 1,000,000 may increase the rate of an
4existing real estate transfer tax by a rate of up to $1.50 for
5each $500 of value or fraction thereof, or in the alternative
6may impose a real estate transfer tax at a rate of up to $1.50
7for each $500 of value or fraction thereof, which may be on the
8buyer or seller of real estate, or jointly and severally on
9both, for the sole purpose of providing financial assistance to
10the Chicago Transit Authority. All amounts collected under such
11supplemental tax, after fees for costs of collection, shall be
12provided to the Chicago Transit Authority pursuant to an
13intergovernmental agreement as promptly as practicable upon
14their receipt. Such municipality shall file a copy of any
15ordinance imposing or increasing such tax with the Illinois
16Department of Revenue and shall file a report with the
17Department each month certifying the amount paid to the Chicago
18Transit Authority in the previous month from the proceeds of
19such tax.
20 (j) A home rule municipality may not assess or collect a
21real estate transfer tax on a deed or trust document related to
22the first sale of a newly constructed and unoccupied
23residential structure for which an impact fee has been assessed
24and collected by a school district, park district,
25municipality, or county as a condition of issuance or signing
26of a plat of subdivision in which the residential structure is

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1located, the building permit for the residential structure, or
2an occupancy permit for the residential structure, except that
3the deed or trust document shall not be exempt from filing the
4declaration under Article 31 of the Property Tax Code. This
5subsection (j) does not apply to the City of Chicago.
6(Source: P.A. 95-708, eff. 1-18-08.)