Chapter 3-24
REAL ESTATE TRANSFER TAX
Sections:
3-24-010 Transfer of title by deed.
3-24-020 Transfer of beneficial interest.
3-24-040 Administrative processing fee.
3-24-010 Transfer of title by deed.
A. Imposition of Tax. A tax in the amount of five dollars ($5.00) per one thousand dollars ($1,000.00) of property value is imposed on the privilege of transferring title to real estate within the corporate limits of the city, as represented by the deed that is filed for recordation. The tax herein levied shall be in addition to any and all other taxes.
B. Liability for Tax. The ultimate incidence of and liability for payment of the tax imposed by this section shall be borne as follows:
1. One-half the tax shall be borne by the grantor of any deed subject to this chapter or by the grantor, assignor or transferor of any instrument conveying the beneficial interest in real estate within the corporate limits of the city.
2. One-half the tax shall be borne by the grantee of any deed subject to this chapter or by the grantee, assignee or transferee of any instrument conveying the beneficial interest in real estate within the corporate limits of the city.
C. Purchase of Stamps. The tax levied by this section shall be paid by the purchase of tax stamps from the comptroller or his designated agent. The payment of such tax shall be denoted by an adhesive stamp or stamps affixed to the face of the deed.
D. Filing of Declaration. At such time as the tax levied by this section is paid, there shall be filed with the comptroller a fully executed and completed copy of the “Real Estate Transfer Declaration” required by the provisions of Ill.Rev.Stat. ch. 120, sec. 1003.
E. Exemptions.
1. The following deeds shall be exempt from the tax levied by this section:
a. Deeds to property acquired by any governmental body or from any governmental body or deeds to property between governmental bodies, or by or from any corporation, society, association foundation or institution organized and operate exclusively for charitable, religious or educational purposes;
b. Deeds which secure debt or other obligation;
c. Deeds which, without additional consideration, confirm, correct, modify or supplement a deed previously recorded;
d. Deeds where the actual consideration is less than one hundred dollars ($100.00);
e. Tax deed;
f. Deeds of release of property which is security for a debt or other obligation;
g. Deeds of partition;
h. Deeds made pursuant to mergers, consolidations, or transfers or sales of substantially all of the assets of corporations pursuant to plans of reorganization;
i. Deeds made by a subsidiary corporation to its parent corporation for no consideration other than the cancellation or surrender of the subsidiary’s stock;
j. Deeds wherein there is an actual exchange of real estate except that money difference or money’s worth paid from one to the other shall not be exempt from the tax;
k. Deeds representing transfers subject to the imposition of a documentary stamp tax imposed by the government of the United States, except that such deeds shall not be exempt from filing the declaration.
2. Every deed which is tax exempt pursuant to this section shall be presented to the comptroller so as to be appropriately marked by said comptroller as an exempt deed eligible for recordation without the payment of tax. At such time as a deed is presented to the comptroller pursuant to this section, there shall be filed with the comptroller a certificate setting forth the facts which justify the exemption of the deed presented. The certificate shall be executed on behalf of either the grantor or grantee, and shall be on a form provided by the comptroller.
F. Real Estate Transfer Tax Stamps. The tax herein levied and imposed shall be collected by the comptroller of the city through the sale of real estate transfer tax stamps, which shall be caused to be prepared by said comptroller in such quantities as said comptroller may from time to time prescribe. Such stamps shall be available for sale at and during the regular business hours of the city offices and the offices of such agent as the city may designate. Upon payment of the tax herein levied and imposed, the stamps so purchased shall be affixed to the deed or other instrument of conveyance as required by Section 3-24-020 of this chapter. Any person so using and affixing a stamp shall cancel it and so deface it as to render it unfit for reuse by marking it with his initials and the day, month and year when the affixing occurs. Such marking shall be made by writing or stamping in indelible ink or by perforating with a machine or punch; however, the stamp(s) shall not be so defaced as to prevent ready determination of its denomination and genuineness. The city of Harvey real estate transfer tax stamp shall be of a design substantially as shown.
G. Recordation of Deeds. After the effective date of this chapter, no deed conveying real property within the corporate limits of the city shall be entitled to recordation by the recorder of deeds for Cook County unless such deed shall bear either a city real estate transfer tax stamp in the amount required by this section, or an exemption mark from the city comptroller. (Ord. 3316 § 2 (part), 2015; Ord. 2963 §§ 1, 2, 1996; Ord. 2554 § 1, 1988; Ord. 2415 § 2 (part), 1986)
3-24-020 Transfer of beneficial interest.
A. Imposition of Tax. A tax in the amount of one hundred dollars ($100.00) is imposed on the privilege of transferring the beneficial interest in real estate within the corporate limits of the city as provided for in this section. The tax herein levied shall be in addition to any and all other taxes.
B. Liability for Tax. The ultimate incidence of and liability for payment of the tax imposed by this section shall be borne by the grantee, assignee or beneficiary of any instrument conveying the beneficial interest in real estate within the corporate limits of the city.
C. Purchase of Stamps. The tax levied by this section shall be paid by the purchase of tax stamps from the comptroller or his designated agent. The payment of such tax shall be denoted by an adhesive stamp or stamps affixed to the face of the instrument transferring the beneficial interest.
D. Filing of Declaration. At such time as the tax levied by this section is paid, there shall be filed with the comptroller a declaration of actual consideration paid for the transfer of beneficial interest, which declaration shall be on a form provided by the comptroller and executed by the person liable for the tax.
E. Real Estate Transfer Tax Stamps. The tax herein levied and imposed shall be collected by the comptroller of the city through the sale of real estate transfer tax stamps as provided in Section 3-24-010.
F. Duty of Trustee. No trustee of real estate shall accept an assignment of beneficial interest in real estate located in the city unless tax stamps in the required amount, as set forth in this section, have been affixed to the assignment
G. Exemptions:
1. The following transfer of beneficial interest shall be exempt from the tax levied by this section.
a. Collateral assignments of beneficial interest which assignments secure a debt or other obligation.
2. Every transfer of beneficial interest which is tax exempt pursuant to this section shall be presented to the comptroller so as to be appropriately marked by such comptroller as an exempt transfer of beneficial interest eligible for recordation without the payment of tax. At such time as a transfer of beneficial interest is presented to the comptroller pursuant to this section, there shall be filed with the comptroller a certificate setting forth the facts which justify the exemption of the transfer of beneficial interest presented. The certificate shall be executed on behalf of either the grantor or grantee, and shall be on a form provided by the comptroller. (Ord. 2957 § 1, 1996; Ord. 2554 § 2, 1988; Ord. 2415 § 2 (part), 1986)
3-24-030 General provisions.
A. Definitions. For the purpose of this chapter, the following words shall have the meanings hereinafter ascribed to them:
1. “Beneficial interest” means any interest, regardless of how small or minimal such interest may be, in a land trust, held by a trustee for the benefit of beneficiaries of such land trust.
2. “Person” means any natural individual, firm, partnership, association, assignee, joint stock company, joint venture, public or private corporation, domestic or foreign corporation, profit or not-for-profit corporation, trust, or a receiver, administrator, executor, trustee, conservator, or other representative appointed by order of any court.
3. “Recordation” shall mean the recording of deeds by the recorder of deeds of Cook County, Illinois.
B. Outstanding Water and Sewer Charges. At the time that application is made for tax stamps hereunder, the comptroller or his designee shall immediately notify the superintendent of water who shall determine if there are any outstanding water and sewer charges due to the city with respect to the subject property. This information shall be provided to the grantee prior to the issuance of the tax stamps.
C. Proceeds of Tax. All proceeds resulting from the collection of the tax imposed by this chapter, including interest and penalties, shall be paid into the treasury of the city and shall be credited to and deposited in the general fund of the city.
D. Interest and Penalties. In the event of failure by any person to pay to the comptroller the tax required hereunder when the same shall be due, interest shall accumulate and be due upon said tax at the rate of one percent per month commencing as of the first day following the day when the deed was recorded or the assignment of beneficial interest was accepted by the trustee. In addition, a penalty of fifty (50) percent of the tax and interest due shall be assessed and collected against any person who shall fail to pay the tax imposed by this chapter.
E. Civil Liability for Tax. In the event of failure by any person to pay to the comptroller the tax required hereunder when the same shall be due, said person shall be liable to the city for such tax, together with interest and penalties.
F. Fine for Violation. In addition to the foregoing provisions of this chapter, any person found guilty in a court of competent jurisdiction of violating, disobeying, omitting, neglecting or refusing to comply with any provision of this chapter, upon conviction thereof, shall be punished by a fine of not less than fifty dollars ($50.00) nor more than one thousand dollars ($1,000.00) for each offense.
G. Refunds.
1. Reinvestment. A grantor or seller who has paid to the city treasurer the tax provided for in Section 3-24-010(B) of this chapter shall be entitled to a refund of such tax provided any such grantor or seller meets all of the following requirements:
a. Has owned and occupied the dwelling on the property for which such tax was paid as his principal residence;
b. Does not rent or lease any portion(s) of the dwelling or real property to another person or persons;
c. Has bought or built a single-family dwelling within the city limits within one year from the payment of the tax sought to be refunded; and
d. Owns and occupies such single-family dwelling as his principal residence.
2. Senior Citizens. Any grantor or seller who is a senior citizen and who has paid to the city treasurer the tax provided for in Section 3-24-010(B) of this chapter shall be entitled to a one-time-only refund of such tax, provided any one of such grantors or sellers meets all of the following requirements:
a. Has reached sixty-five (65) years of age or older, and
b. Has owned and occupied the dwelling on the property sold or transferred for more than one year prior to its sale or transfer, and
c. Does not rent or lease any portion(s) of the dwelling or real property to another person or persons.
3. City Employees. Any grantee or buyer who has paid to the city treasurer the tax provided in Section 3-24-010(B) of this chapter shall be entitled to a one-time-only refund of such tax provided any such grantee or buyer meets the following requirements:
a. Is an actual full-time employee of the city;
b. Does not rent or lease any portion(s) of the dwelling or real property to another person or persons;
c. Has bought or built a single-family dwelling within the city limits within one year from the payment of the tax sought to be refunded; and
d. Owns and occupies such single-family dwelling as his principal residence. (Ord. 2963 § 3, 1996; Ord. 2415 § 2 (part), 1986)
3-24-040 Administrative processing fee.
Each application for real estate transfer tax stamps shall be accompanied by a payment of an administrative processing fee in the amount of sixty dollars ($60.00), regardless of whether the application is for a transfer subject to or exempt from the transfer tax imposed by this chapter. The administrative processing fee is separate from and is in addition to any transfer tax imposed by this chapter. The administrative processing fee shall be paid by the grantee of any deed subject to this chapter. Payment of the fee described in this section shall be made upon application for the real estate transfer tax stamp or exemption and shall be made to the comptroller. Any funds collected pursuant to this section shall be deposited in the corporate fund of the city. (Ord. 3316 § 2 (part), 2015; Ord. 2845 § 1, 1993)