Real estate transfer tax (7551)

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Procedure: A tax is imposed on the privilege to transfer title or beneficial interest in real property located in the city, whether or not the agreement or contract providing for the transfer is entered into by the city. The tax will be at the rate of $ 3.75 per $ 500.00 of the transfer price, or fraction thereof, of the immovable or of the beneficial interest in the immovable.

In addition, an additional tax at the rate of $ 1.50 per $ 500.00 of the transfer price, or fraction thereof, will be imposed on transfers made on or after April 1, 2008, for the purpose of providing financial assistance to the Chicago Transit Authority (“CTA”). This additional tax will be referred to as the “CTA Part” of the Chicago Real Estate Transfer Tax, and the $ 3.75 tax will be referred to as the “City Part”.

Exemptions, deductions and credits: The authorized exemptions are:
  • Transfers of real estate acquired by or from a government agency and certain transfers by or from certain non-profit organizations.
  • Transfers in which the instrument guarantees debt or other obligations.
  • Assignments without additional consideration to correct, modify, confirm or complete a previously registered act.
  • Transfers under $ 500.
  • Assignments where the deed is a tax deed.
  • Transfers in which the instrument releases assets that secure the debt.
  • Assignments where the act is an act of sharing.
  • Transfers between a parent company and its subsidiary or between subsidiaries of the same parent company as a result of a merger, consolidation or the sale of substantially all of the seller’s assets.
  • Transfers from a subsidiary to its parent company without any consideration other than the cancellation or surrender of the shares of the subsidiary.
  • Plan confirmed in bankruptcy
  • Business areas where the property is used primarily for commercial or industrial purposes
  • Transfers to lenders in connection with foreclosure proceedings of a mortgage or security or made in lieu of foreclosure
  • HOME program.
  • Transfer of ownership or beneficial interest in the main residence of a legally recognized couple, from one member of the couple to another, by court decision resulting from legal separation or divorce proceedings.

No transfer is exempt unless the statement describes the facts supporting the exemption and supporting documents. See section 3-33-060 for the exact terms that control.

Article 3-33-060 (O) includes a refund of the LTC part of the transfer tax to transferees aged 65 or over, who occupy a property purchased as personal accommodation for at least one year following the transfer , if the transfer the price is $ 250,000 or less. This exemption is administered through a rebate administered by the Taxation Division of the Department of Finance located at 333 South State Street, DePaul Center, Room 300.

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