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Real Property Transfer Tax (7551)

 

Municipal Code Reference: 3-33
CAPS Code Reference: 1002820051801
Tax Return Form Code: Form 7551
Procedure: A tax is imposed upon the privilege of transferring title to, or beneficial interest in, real property located in the city, whether or not the agreement or contract providing for the transfer is entered into the city. The tax shall be at the rate of $3.75 per $500.00 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property.

In addition, a supplemental tax at the rate of $1.50 per $500.00 of the transfer price, or fraction thereof, shall be imposed on transfers taking place on or after April 1, 2008, for the purpose of providing financial assistance to the Chicago Transit Authority (“CTA”). This supplemental tax shall be referred to as the “CTA portion” of the Chicago Real Property Transfer Tax, and the $3.75 tax shall be referred to as the “City portion.”

Tax Rate: $5.25 per $500.00 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property. In general, The Buyer is responsible for $3.75 and the Seller is responsible for $1.50.
Exemptions, Deductions and Credits: The exemptions allowed are:
  1. Transfers of real property acquired by or from a governmental body and certain transfers by or from certain non-profit organizations.
  2. Transfers in which the deed secures debt or other obligations.
  3. Transfers without additional consideration to correct, modify, confirm, or supplement a deed previously recorded.
  4. Transfers for less than $500.
  5. Transfers in which the deed is a tax deed.
  6. Transfers in which the deed releases property which secures debt.
  7. Transfers in which the deed is a deed of partition.
  8. Transfers between a parent and its subsidiary or between subsidiaries with the same parent because of merger, consolidation or the sale of substantially all of the seller's assets.
  9. Transfers from a subsidiary to its parent for no consideration other than the cancellation or surrender of the subsidiary's stock.
  10. Confirmed plan under bankruptcy
  11. Enterprise zones where property is used primarily for commercial or industrial purposes
  12. Transfers to lenders pursuant to a mortgage or security interest foreclosure proceeding or made in lieu of foreclosure
  13. H.O.M.E. Program.

     

No transfer is exempt unless declaration describes the facts supporting the exemption along with supporting documentation. See Section 3-33-060 for exact terms, which control.

 

Section 3-33-060 (O) includes a refund for the CTA portion of tax for transfers to transferees who are age 65 years or older, who occupy purchased property as their personal dwelling for at least one year following the transfer, if the transfer price is $250,000 or less. This exemption is administered through a refund administered by the Tax Division of the Department of Finance located at 333 South State Street, DePaul Center, room 300.

Rulings and Procedures:

Real Property Transfer Tax Ruling 1 - Real estate cooperatives.
Real Property Transfer Tax Ruling 2 - Enterprise zone exemption.
Real Property Transfer Tax Ruling 3 - Transfers in divorce situations.
Real Property Transfer Tax Ruling 4 - Exemptions "C" & "M".

Real Property Transfer Tax Title Company Notice.

May 2009 Information Bulletin - Cell Sites

April 2009 Information Bulletin - Cooperatives

October 2005 Information Bulletin - Real Property Transfer Tax

CTA Portion of the Real Property Transfer Tax Refund Application

Real Property Transfer Tax Manual