OSWEGO, IL — People who buy property in Oswego will soon begin being taxed thanks to a referendum that was passed by about 60% of local voters, according to village officials.
The tax could take effect as early as August 1, village officials said Wednesday.
Under the real estate transfer tax, people who buy residential or commercial properties in Oswego will pay the village 0.3% – or $3 per $1,000 – of the purchase price. For example, the transfer tax on a property with a purchase price of $300,000 would be $900.
The reason for the tax is to help fund Oswego’s connection to a new water source: Lake Michigan, through the DuPage Water Commission. It is expected to generate more than $500,000 a year, Patch reported.
Theto current Oswego residents buying a new home in Oswego as long as they’ve lived in their space for a year or more, Patch reported. The village council passed an ordinance on April 5 exempting the current owners.
Instead of raising taxes on current residents, officials said they want to shift the burden to future residents and businesses buying property in town.
In April, village president Troy Parlier said residents “have been asked to carry the burden for too long.”
Oswego is not the only community that imposes a real estate transfer tax. Neighboring cities including Aurora, Bolingbrook, Naperville, Joliet, and Romeoville also charge transfer taxes.