On September 29, 2016, a federal district court entered an order declaring that the City is preempted from imposing its Real Property Transfer Tax (RPTT) on people who purchase property from Fannie Mae or Freddie Mac. In light of that decision, the City is not currently in a position to accept RPTT from people who purchase property from Fannie Mae or Freddie Mac. The City reserves the right, however, to seek tax and interest at a later date, if the district court’s decision is overturned on appeal.
|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:
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.