A. Definitions: For the purpose of this section, whenever any of the following words, terms or definitions are used herein, they shall have the meanings ascribed to them in this subsection:
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 thirty (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.
PERSON: Any natural person, receiver, administrator, executor, conservator, assignee, trust in perpetuity, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the 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 the Recorder of Deeds of the County wherein the property is situated or the registration of deeds with the Registrar of Titles of Cook County, Illinois.
VALUE: The amount of the full, actual consideration for any transfer covered hereunder, including the amount of any lien or liens assumed by the grantee or purchasers.
B. Tax Imposed: A tax is imposed on the transfer of title to real estate located in the Village 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, 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 three dollars ($3.00) for every one thousand dollar ($1,000.00) value or fraction thereof as stated in the declaration.
C. Liability For Tax: The primary liability for payment of said tax shall be borne by the grantor or seller involved in any such transaction; 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 subsection I of this section 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.
D. Declaration Of Transfer: At the time the tax is paid, there shall also be presented to the Director of Finance, on a form prescribed by him, a declaration signed by at least one (1) of the sellers or grantors and also signed by at least one (1) of the purchasers or grantees involved in the transaction or by their attorneys or agents, which declaration shall state the full consideration for the property so transferred and shall be deemed a confidential record by the Village Clerk. Where the declaration is signed by an attorney or agent 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 or agent 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.
A signed copy of the real estate transfer declaration filed pursuant to section 3 of the Real Estate Transfer Act of the State of Illinois shall be filed with the Village Clerk by the grantee of any deed or assignment 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.
No trustee of real estate shall accept an assignment of beneficial interest in real estate located in the Village 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 subsection, have been affixed to the assignment.
E. Contents Of Deeds: Every deed shall show the data of the transaction which it evidences, the names of the grantor and grantee and a legal description of the property to which it relates.
F. Exemptions:
1. Transaction Exemption: The tax imposed by this section 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 with respect to said exemption:
a. Transactions involving property acquired by or from any governmental body or by any corporation, society, association, foundation or institution organized and operated exclusively for charitable, religious or education purposes;
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 is less than five hundred dollars ($500.00);
e. Transactions in which the deeds are tax deeds;
f. Transactions in which the deeds are releases of property which is security for a debt or other obligation;
g. Transactions in which deeds are partition deeds;
h. Transactions made pursuant to mergers, consolidations or transfer or sales of 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 of 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. Transactions in which the deeds are issued to a holder of a mortgage, as defined by 735 Illinois Compiled Statutes 5/15 pursuant to a mortgage foreclosure proceeding or pursuant to a transfer in lieu of foreclosure.
2. Estate And Transfer Exemptions: The taxes imposed by this subsection 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 provided by this subsection shall further be exempt where the transaction is affected by operation of law or upon delivery or transfer in the following instances:
a. From a descendent 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 of 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 F2a through F2e of this section, to his successor acting in the same capacity, or from one such successor to another;
g. From a foreign country or nation 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, as amended by the First War Powers Act, being 50 U.S.C. §4305;
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; and
j. A transfer by lease.
3. Fee: A processing fee in the amount of ten dollars ($10.00) shall be collected by the Director of Finance of the Village for real estate transfer stamps issued for transactions determined to be exempt as provided for in subsections F1 and F2 of this section. Upon payment of the fee, the revenue stamp so issued shall be marked "EXEMPT" and shall be affixed to the deed or other instrument of conveyance.
G. Collection Of Tax; Revenue Stamps Required: The tax herein levied and imposed shall be collected by the Director of Finance of the Village through the sale of revenue stamps, which shall be caused to be prepared by said Director in such quantities as the Director may from time to time prescribe. Such revenue stamps shall be in the following design:
Village of Elk Grove Village | Real Estate Transfer Tax $000.00 |
Such revenue stamps shall be available for sale at and during the regular hours of the Village's offices or at other locations designated by the Director of Finance.
Prior to the issuance of the revenue stamps, the Director of Finance or his/her designated agent shall review applicable Village records to determine whether the seller or grantor requesting the revenue stamps has any outstanding financial obligation to the Village. If unpaid financial obligations exist, that amount, plus any interest or penalties which may have accrued thereon, shall be added to the Transfer Tax herein imposed. Upon payment of the tax herein, together with all added costs and fees, the revenue stamps so purchased shall be affixed to the deed or other instrument of conveyance. Should the seller or grantor dispute the existence of all or any part of the outstanding obligation and can provide evidence with respect thereto to the Director of Finance or his/her designated agent, then, and in such case, the Director of Finance, with the approval of the Village Manager, is authorized to settle and compromise the amount due, in whole or in part. The decision of the Director of Finance and the Village Manager shall be deemed final.
Any person so using and affixing a revenue stamp or stamps 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 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.
H. Refunds:
1. Reinvestment: A grantor or seller who has paid to the Director of Finance the tax provided for herein shall be entitled to a refund of two dollars ($2.00) for every one thousand dollar ($1,000.00) value or fraction thereof as stated in the declaration, provided any such grantor or seller meets all of the following requirements:
a. He owned and occupied the dwelling on the property for which such tax was paid as his principal residence;
b. He did not rent or lease any portion(s) of the dwelling or real property sold to another person or persons;
c. He buys or builds a single-family dwelling or condominium unit within the Village corporate limits within one year from the payment of the tax sought to be refunded; and
d. He owns and occupies said single-family dwelling or condominium unit as his principal residence.
2. Senior Citizens: A grantor or seller who is a senior citizen and who has paid to the Director of Finance the tax provided for herein shall be entitled to a onetime only refund of two dollars ($2.00) for every one thousand dollar ($1,000.00) value or fraction thereof as stated in the declaration, provided any such grantor or seller meets all of the following requirements:
a. He is sixty five (65) years of age or older;
b. He owned and occupied as his principal residence the dwelling on the property sold or transferred for more than one year prior to its sale or transfer;
c. He did not rent or lease any portion(s) of the dwelling or real property to any other person or persons; and
d. If such property was owned by more than one person, at least one of such owners is sixty five (65) years of age or older and said person has owned and occupied the dwelling as his principal residence for more than one year prior to its sale, and he did not rent or lease any portion(s) of the dwelling or real property to any other person(s). In the event any co-owner who is sixty five (65) years of age or older dies prior to the sale of a qualifying dwelling, the surviving co-owner who is at least sixty (60) years of age at the time of the sale of said dwelling shall be entitled to claim the above refund.
I. Lien For Tax; Foreclosure: 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 Village without the revenue stamps provided by this section, 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 Elk Grove Village revenue stamp in an amount as required herein shall constitute constructive notice of the 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 construed as preventing the Village from bringing a civil action to collect the tax imposed in this section from any person who has the ultimate liability for payment of the same, including interest and penalties as hereinbelow provided.
J. Proceeds Of Tax: All proceeds of the Real Estate Transfer Tax, including interest and penalties, shall be paid to the Village and shall be credited to and deposited in the General Corporate Fund of the Village.
K. Failure To Pay Tax; Interest And Penalty:
1. 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 Village Attorney shall, upon request of the Village 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 Village in any court of competent jurisdiction.
2. In the event of failure by any person to collect and pay to the Director of Finance the tax required herein 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 became 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 section.
L. Payment Of Water And Sewer Charges:
1. The Director of Finance shall not issue a Transfer Tax stamp unless he verifies that all delinquent and current outstanding water and sewer assessments and penalties related thereto are paid in full. In addition, for properties not exempt under subsection F of this section, a final reading must be taken by a Village employee and charges paid prior to issuing a stamp. If the property does not have a working, remote meter, an inside final reading is required.
2. For water and sewer customers with one or more delinquent payments on their account, prior to issuing a Real Estate Transfer Tax stamp, payments for delinquent, current, and final water and sewer charges must be made by cash, cashier's check or money order.
(Ord. 1961, 4-12-1988, eff. 7-1-1988; amd. Ord. 1987, 9-27-1988; Ord. 2025, 3-28-1989; 1992 Code; Ord. 2448, 9-26-1995; Ord. 3035, 4-26-2005; Ord. 3503, 7-18-2017)
Cross-reference:
See section 7-2-5 of this Code
Statutory reference:
35 ILCS 200/31-1
55 ILCS 5/3-5021a