Public Act 093-1099
 		





HB0867 Enrolled
LRB093 05712 SJM 05805 b






    AN ACT in relation to 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 31-5, 31-10, and 31-20 as follows:
 
    (35 ILCS 200/31-5)


    (Text of Section after amendment by P.A. 93-657)
    Sec. 31-5. Definitions. 

    "Recordation" includes the issuance of
certificates of 
title by Registrars of Title under the Registered Titles

(Torrens) Act pursuant to the filing of deeds or trust 
documents for that
purpose, as well as the recording of deeds 
or trust documents by recorders.


    "Department" means the Department of Revenue.


    "Person" means any natural individual, firm, partnership, 
association,
joint stock company, joint adventure, public or 
private corporation, limited
liability company, or a receiver, 
executor, trustee, guardian or other
representative appointed 
by order of any court.


    "Value" means the amount of the full actual consideration 
for the real
property or the beneficial interest in real 
property located in Illinois, including the
amount of any lien 
on the real property assumed by the transferee
buyer.


    "Trust document" means a document required to be recorded 
under the Land
Trust Recordation and Transfer Tax Act and, 
beginning June 1, 2005, also means any document relating to the 
transfer of a taxable beneficial interest under this Article.


    "Beneficial interest" includes, but is not limited to:

        (1) the beneficial interest in an Illinois land trust;

        (2) the lessee interest in a ground lease (including 
    any interest of the
lessee in the related improvements) 
    that provides for a term of 30 or more
years
when all 
    options to renew or extend are included, whether or not any 
    portion of
the term has expired; or

        (3) the indirect interest in real property as reflected 
    by a controlling
interest in a real estate entity.


    "Controlling interest" means more than 50% of the
fair

market value of all ownership interests or beneficial interests 
in a real
estate entity.

    "Real estate entity" means any person
including, but not

limited to, any partnership, corporation, limited liability 
company, trust,
other entity, or
multi-tiered
entity, that 
exists or acts substantially for the purpose of holding 
directly
or indirectly title to or
beneficial interest in real 
property.
There is a rebuttable presumption
that
an entity is a 
real estate entity if it owns, directly or indirectly, real

property
having a fair market value greater than 75% of the 
total fair market
value of all of the
entity's assets, 
determined without deduction for any mortgage, lien, or

encumbrance.


(Source: P.A. 92-651, eff. 7-11-02; 93-657, eff. 6-1-04.)

 
    (35 ILCS 200/31-10)


    (Text of Section after 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 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 50ยข for each $500 of
value or fraction of $500 stated in the 
declaration required by Section 31-25.
If, however, the 
transferring document states that 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.


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


 
    (35 ILCS 200/31-20)


    (Text of Section after amendment by P.A. 93-657)
    Sec. 31-20. Affixing of stamps.  Payment of the tax shall 
be evidenced by
revenue stamps in the amount required to show 
full payment of the tax imposed
by Section 31-10. Except as 
provided in Section 31-45, a deed, document
transferring a 
controlling interest in real property,
or trust document
shall 
not be accepted for filing by any recorder or registrar of 
titles unless
revenue stamps in the required amount have been 
purchased from the recorder or
registrar of titles of the 
county where the deed, document transferring a
controlling 
interest in real property,
or trust document is being
filed for 
recordation.  The revenue stamps shall be affixed to the deed,

document transferring a controlling interest in real property,

or
trust document by the recorder or the registrar of titles 
either before or
after recording as requested by the grantee. 
The Department may prescribe a form to which stamps must be 
affixed that a transferee must file for recordation at the time 
a declaration is presented if a transferring document is not 
presented for recordation within 3 business days after the 
transfer is effected. A person using or affixing a
revenue 
stamp shall cancel it and so deface it as to render it unfit 
for reuse
by marking it with his or her initials and the day, 
month and year when the
affixing  occurs.  The marking shall be 
made by writing or stamping in
indelible ink or by perforating 
with a machine or punch. However, the revenue
stamp shall not 
be so defaced as to prevent ready determination of its

denomination and genuineness.


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

 
    Section 10. The Stock, Commodity, or Options Transaction

Tax Exemption Act is amended  by changing Section 3 as follows:
 
    (35 ILCS 820/3)

    (This Section may contain text from a Public Act with a 
delayed effective date)
    Sec. 3. Construction of Act.  Nothing in this Act shall be 
construed as
prohibiting or
otherwise invalidating any real 
estate transfer tax or fee authorized
or permitted by
Section 
31-10 of the Property Tax Code,
Sections 5-1031 and
Section

5-1031.1 of the Counties
Code,
or
Section 8-3-19 of the 
Illinois Municipal Code. This Section is intended as a

clarification
and not as a change to existing law.


(Source: P.A. 93-657, eff. 6-1-04.)
 
    Section 15. The Counties Code is amended  by changing 
Section 5-1031 as follows:
 



    (55 ILCS 5/5-1031)  (from Ch. 34, par. 5-1031)



    Sec. 5-1031. County real estate transfer tax. 
    (a) The county board of a
county may impose a tax upon the 
privilege of transferring title to real
estate, as represented 
by the deed that is filed for recordation, and upon
the 
privilege of transferring a beneficial interest in a land trust 
holding
legal title to real estate located in such county as 
represented by the
trust document that is filed for 
recordation, at the rate of 25 cents for
each $500 of value or 
fraction thereof stated in the declaration required
by Section 
31-25 of the Property Tax Code.  If, however, 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.

    A tax imposed pursuant to this Section shall be collected 
by the recorder
or registrar of titles of the county prior to 
recording the
deed or trust document or registering the title 
subject to the tax.
All deeds or trust documents exempted in 
Section 31-45 of the Property Tax
Code shall also be exempt 
from any tax imposed pursuant to
this Section.  A tax imposed 
pursuant to this Section shall be in addition
to all other 
occupation and privilege taxes imposed by the State of
Illinois 
or any municipal corporation or political subdivision thereof.
    (b) The county board may impose a tax at the same rate on 
the transfer of a beneficial interest, as defined in Section 
31-5 of the Property Tax Code. If, however, the transferring 
document states that the real estate or beneficial interest is 
transferred subject to a mortgage, then 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 must be paid at the time of recordation or, if a 
document is not recorded, at the time of presentation of the 
transfer declaration to the recorder, as provided in Section 
31-25 of the Property Tax Code. All deeds or documents relating 
to the transfer of a beneficial interest exempted in Sections 
31-45 or 31-46 of the Property Tax Code are also exempt from 
any tax imposed under this Section. A tax imposed under this 
Section is in addition to all other occupation and privilege 
taxes imposed by the State of Illinois or any municipal 
corporation or political subdivision thereof.
    (c) Beginning June 1, 2005, a tax imposed under this 
Section is due if the transfer is made by one or more related 
transactions or involves one or more persons or entities, 
regardless of whether a document is recorded.

(Source: P.A. 89-626, eff. 8-9-96.)


 
    Section 99. Effective date. This Act takes effect June 1, 
2005.