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HomeMy WebLinkAboutORDINANCES-1986-033-O-86-:1 3/5/86 3/6/86 3/21/86 33-0-86 AN ORDINANCE Amending Title 3 of the City Code by Adding a New Chapter 29 Entitled "Real Estate Transfer Tax" BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: Pursuant to the provisions of the 1970 Illinois Constitution, there is hereby established a new chapter of Title 3 of the City Code of the City of Evanston, 1979, as amended, to be numbered Chapter 29 and entitled "Real Estate Transfer Tax," and the tax herein imposed shall be known as the Real Estate Transfer Tax. Said-. Chapter shall read as follows: CHAPTER 29 REAL ESTATE TRANSFER TAX SECTION: 3-29-1: Definitions 3-29-2: Imposition of Tax 3-29-3: Primary Liability for Tax 3-29-4: Declaration Forms 3-29-5: Deeds 3-29-6: Exempt Transactions 3-29-7: Exemptions 3-29-8: Revenue Stamps Required 3-29-9: Real Estate.Transfer Declaration; Filing 3-29-10: Transfers in Trust 3-29-11: Lien Created; Enforcement 3-29-12: Enforcement; Suit for Collection 3-29-13: Interest and Penalties 3-29-14: Proceeds of Tax 3-29-15: Penalty for Violation 3-29-16: Effective Date 3-29-17: Severability 3-29-18: Payment of Delinquent Water and Sewer Charges 3-29-1: DEFINITIONS: PERSON: Any natural person, receiver, administrator, executor, conservator, assignee, trust in perpetuity, trust, estate, firm, co -partnership, joint • venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the 33-0-86 • State of Illinois, domestic or foreign corporation, association, syndicate, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, and the United States or any instrumentality thereof. Whenever the term "person" is used in any clause prescribing and imposing a penalty, the term as applied to associations shall mean the owners or part-owners thereof, and as applied to corporations, the officers thereof. RECORDATION: The recording of deeds with the Office of Recorder of Deeds or the registration of deeds with the Registrar of Titles of Cook County, Illinois. VALUE: The amount of the full actual considera- tion for any transfer covered hereunder, including the amount of any mortgage or other lien assumed by the grantee or purchaser. 3-29-2: IMPOSITION OF TAX: A tax is imposed on the transfer of title to real property located in the city as evidenced by the recordation of a deed by any person or by the delivery of any deed or assignment of interest of said real property, made after the first day of May, 1986, whether investing the owner with the beneficial interest in or legal title to said property or merely the possession or use thereof for any purpose or to secure future payment of money or the future transfer of any such real property. The tax imposed shall be two and 50/100ths Dollars ($2.50) for every one thousand dollars ($1,000.00) value or fraction thereof as stated in the declaration. The term "deed" as used in this Section shall mean all documents transferring or reflecting the transfer of legal title, equitable title, or both legal and equitable title to real property, or the beneficial interest in a land trust. Delivery of any deed shall be deemed to have occurred when the transferee or purchaser, or his representative or agent, receives possession of the deed or in the case of a land trust when the trustee receives possession of a valid assignment of a beneficial interest. 3-29-3: PRIMARY LIABILITY FOR TAX: The primary liability for payment of said tax shall be borne by the grantor or seller involved in any such transaction unless otherwise negotiated by contract; provided, however, it shall be unlawful for the grantee or purchaser to accept a conveyance if the transfer tax has not been paid. If the tax has not been paid and the stamps affixed to the deed, then the grantee's title shall be subject to the lien provided in Section 3-29-11 hereof and the grantee or purchaser shall be liable for payment of the tax. The tax herein levied shall be in addition to any and all other taxes. 3-29-4: DECLARATION FORMS: At the time the tax is paid, or an exemption applied for, there shall also be presented to the Director of Finance or his designee, on a form prescribed by him, a declaration signed by at least one of the sellers or grantors and also signed by at least one of -2- 33-0-86 the purchasers or grantees involved in the transaction, or by their attorneys or.agents, or by a licensed real estate salesperson or broker having knowledge of the terms of the transaction, which declaration shall state the full consideration for the property so transferred and shall be .deemed a confidential record by the City Clerk. Where the declaration is signed by an attorney, agent, licensed real estate salesperson or broker, on behalf of sellers or • buyers who have the power of direction to.deal with the title to the real estate under a land trust agreement, the trustees being the mere repository of record legal title with.a duty of conveying the real estate only when and if directed in writing by the beneficiary or beneficiaries having the power of direction, said attorney, agent, licensed real estate salesperson, or broker need only identify the land trust which is the repository of record legal title and not the beneficiary or beneficiaries having the power of direction under the land trust agreement. 3-29-5: DEEDS: Every deed shall show the date of the transaction which it evidences, the names of the grantor and grantee, and a legal description of the property to which it relates. 3-29-6: EXEMPT TRANSACTIONS: The tax imposed by this Chapter shall not apply to the following transactions, provided said transaction in each case is accompanied by a certificate setting forth the facts or such other certificate of record or sworn statement as the Director of Finance may require at the time of filing of the declaration form: (A) Transactions involving property acquired by or from any governmental body, or any transaction involving property acquired by and from any corporation, society, association, foundation or institution organized and operated exclusively for charitable, religious or educational purposes ("charitable organizations"). The latter transaction is exempt only when one charitably organization conveys property to another charitable organization; (B) Transactions in which the deeds secure debt or,other obligations; (C) Transactions in which the deeds, without additional consideration, confirm, correct, modify or supplement deeds previously recorded; (D) Transactions in which the actual consideration covering the sale of any owner occupied residential unit is less than fifty thousand dollars ($50,000) and the seller qualifies under Section 8 Housing Assistance Payment Program Income Guidelines of the U.S. Housing Act of 1937, as amended from time to time; (E) Transactions in which the deeds are tax deeds; r (F) Transactions in which the deeds are releases of _property which is security for a debt or other obligation; • (G) Transactions in which the deeds are pursuant to a court decree; (H) Transactions made pursuant to mergers, consolidations, or transfers or sales of -3- 1-: 33-0-86 substantially all of the assets.of a corporation pursuant to plans of reorganization; (I) Transactions between subsidiary corporations and their parents for no consideration other than the cancellation or surrender of the subsidiary, corporation's stock; • (J) Transactions wherein there is an actual exchange of real property except that the money difference or money's worth paid from one or the other shall not be exempt from the tax; (K) Transactions representing transfers subject to the imposition of a documentary stamp tax imposed by the government of the United States; and (L) A transfer by lease. 3-29-7: EXEMPTIONS: The taxes imposed by this Chapter shall not be imposed on or transferred by an executor or administrator to a legatee, heir or distributee where the transfer is being made pursuant to will or by intestacy. The tax imposed by this Chapter shall further be exempt where the transaction is effected by operation of law or upon delivery or transfer. in the following instances, provided, however, that a declaration form is.filed: (A) From a decedent to his executor or administrator;. (B) From a minor to his guardian or from a guardian to his ward upon attaining majority; • (C) From an incompetent to his conservator, or similar legal representative, or from a conservator or similar legal representative to a former incompetent upon removal or disability; (D) From a bank, trust company, financial institution, insurance company or other similar entity, or nominee, custodian, or trustee therefor, to a public officer or commission, or person designated by such officer or commission or by a court, in the taking over of its assets, in whole or in part, under State or Federal law regulating or supervising such institutions, nor upon redelivery or retransfer by any such transferee or successor thereto; (E) From a bankrupt or person in receivership due to insolvency to the trustee in bankruptcy or receiver, from such receiver to such trustee or from such trustee to such receiver., nor upon redelivery or retransfer by any such transferee or successor thereto, (F) From a transferee under subsections A through E, inclusive, to his successor acting in the same capacity, or from one such successor to another; (G) From a foreign country or national thereof to the United States or any agency thereof, or to the government of any foreign country directed pursuant to the authority vested in the President of the United States by section 5(b) of the Trading with the Enemy Act (40 Stat. 415), as amended, by the First War Powers Act (55 Stat. 839); -4- 4-: 33-0-86 (H) From trustees to surviving, substitute, succeeding or additional trustees of the same trust; (I) Upon the death of a joint tenant or tenant by the entirety to the survivor or,survivors. 3-29-8: REVENUE STAMPS REQUIRED: The tax herein • levied and imposed shall be collected by the Director of Finance or his designee for the City through the sale of revenue stamps, which shall be caused to be prepared by said Director of Finance in such quantities as said Director of Finance may. from time to time prescribe. Such revenue stamps shall be in the denomination of two and 50/100ths dollars ($2.50), five and 00/100ths dollars-($5.00), ten dollars ($10.00), twenty five dollars ($25.00),fifty dollars ($50.00), one hundred dollars ($100.00), two hundred dollars ($200.00), three hundred dollars ($300.00) and five hundred dollars ($500.00). Such revenue stamps shall be available for sale at and during the regular business hours of the City offices or at other locations designated by the Director of Finance. Upon payment of the tax herein levied and, imposed, the revenue stamps so purchased shall be affixed to the deed or other instrument of conveyance. Any person so using and affixing a revenue stamp or stamps shall cancel it and so deface it as to render it unfit for use by marking it with his initials and the day, month and year when the affixing occurs. Such markings shall be made by writing or stamping in indelible ink or by perforating with a machine or punch. However, the revenue stamp(s) shall not be so defaced as to prevent ready determination of its denomination and genuineness. 3-29-9: REAL ESTATE TRANSFER DECLARATION; FILING: • A signed copy of the real estate transfer declaration filed pursuant to Section 3 of the Real Estate Transfer Act of the State shall be filed with the City Clerk of the City by the grantee of any deed or assignee of beneficial interest within ten (10) days after delivery of the deed or assignment of beneficial interest, or at the time of payment of the tax herein levied or imposed, whichever first occurs. 3-29-10: TRANSFERS IN TRUST: No trustee of real estate shall accept or acknowledge an assignment of beneficial interest in real estate located in the City without first obtaining a real estate transfer. declaration from_the assignor and assignee and unless revenue stamps in the required amount, as set forth in this Chapter, have been affixed to the assignment. 3-29-11: LIEN CREATED; ENFORCEMENT: In the event a deed is filed for recordation or there is ,. an assignment of beneficial interest conveying real estate within the corporate limits of the City without the revenue stamps provided by this Chapter, a lien is declared against said real estate conveyed in the amount of the tax. The fact that the deed or assignment does not • contain an Evanston revenue stamp in an amount equal to five (5) times the amount of State transfer taxes shall constitute constructive notice of lien. The lien may be enforced by proceedings to foreclose, as in cases of mortgages or mechanics' liens. Suit to foreclose this lien must be commenced within three (3) years after the date of recording the deed. Nothing herein shall be . Wic I 33-0-86 construed as preventing the City from bringing a civil action to collect the tax imposed by this Chapter from any person who has the ultimate liability for payment of.the' same, including interest and penalties as hereinbelow provided. 3-29-12: ENFORCEMENT; SUIT FOR COLLECTION: Whenever • any person shall fail to pay any taxes herein provided, or any purchaser or grantee shall accept a conveyance where the tax has not been paid, the City's Corporation Counsel shall, upon request of the City Manager, bring or cause to be brought an action to enforce the payment of said tax, including interest and penalties as hereinbelow provided, on behalf of the City in any court of competent jurisdiction. 3-29-13: INTEREST AND PENALTIES: In the event of failure by any person to collect and pay to the Director of Finance 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 (1%) per month commencing as of the first day following the day when the tax becomes due. In addition, a penalty of ten••.` percent (10%) 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. 3-29-14: PROCEEDS OF TAX: All proceeds resulting from the imposition of the tax under this Chapter, including interest and penalties; shall be paid to the City and shall be credited to and deposited in the general fund of the City. • 3-29-15: PENALTY FOR VIOLATION: In addition to the remaining provisions of this Chapter, any person found guilty in a court of competent jurisdiction of violating, disobeying, omitting, neglecting or refusing to comply with or resisting or opposing the enforcement of any provision of this Chapter, upon conviction thereof, shall be punished by a fine'bf not less than two hundred dollars ($200.00) nor more than one thousand dollars ($1,000.00). 3-29-16:' EFFECTIVE DATE: These provisions shall be in full force and effect from May 1, 1986, provided, however, that these provisions shall not apply to contracts for the transfer of title to real property executed prior to April 1, 1986. 3-29-17: SEVERABILITY: If any provision, clause, sentence, paragraph, section or part of this Chapter, or application thereof to any person or circumstance, shall.for any reason be adjudged by a court of competent jurisdiction to be unconstitutional or invalid, said judgment shall not affect, impair or invalidate the remainder of this Chapter and the application of such provision to other persons or • circumstances, but shall be confined in its operation to the provision, clause, sentence, paragraph, section or part.thereof directly involved in the controversy in which such judgment shall have been rendered and to the person or circumstances involved. It is hereby declared to be the legislative intent of the City Council that this 33-0-86 Chapter would have been adopted had such unconstitutionail or invalid provisions, clause, sentence, paragraph, section or part thereof not been included. 3-29-18: PAYMENT OF DELINQUENT WATER AND SEWER CHARGES: The Director of Finance shall issue no transfer tax stamps unless the City • Collector verifies that any delinquent water and sewer assessments and penalties related thereto are paid in full, and unless the declaration form contains information necessary for the billing and collection of the final water and sewer assessment charges. SECTION 2: This Ordinance shall take effect on and after May 1, 1986 provided, E+ however, that these provisions shall not apply to contracts for the sale or transfer of real property executed prior to April 1, 1986. SECTION 3: This ordinance shall terminate automatically on May 1, 1987. On February 1, 1987, the City Clerk shall report the date of such.. termination to the City Council.. SECTION 4: All ordinances or parts of ordinances .., in conflict herewith are hereby repealed. .j SECTION 5: This ordinance shall be'in full force and effect from and after its passage, approval, and publication in the manner provided by law. .r ' Introduced: J�eZIC 1986. 1986. Adopted: 97 Appr .7 d 1986. Mayor .�; n ATTEST : c� 4'ts, City Clerk • A pio.ved as to form: Corporation Counsel 'StC y^t . 4 —7—