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HomeMy WebLinkAboutG18-94 Recorded Cook 4 V State of Illinois) County of Kane ) ss . City of Elgin ) CERTIFICATE OF CITY CLERK I, Dolonna Mecum, DO HEREBY CERTIFY that I am the City Clerk of the City of Elgin, in the Counties of Kane and Cook in the state of Illinois, and that as such City Clerk I am the keeper and custodian of the files and records of said City of Elgin and the seal thereof. I DO FURTHER CERTIFY that the attached is a full, true, and correct copy of Ordinance No. G18-94 entitled "An Ordinance Providing for a Real Estate Transfer Tax" passed by the Elgin City Council at its meeting held on April 27, 1994, the original of which is entrusted to my care for safe keeping. In Witness Whereof, I have hereunto set my hand and affixed the corporate seal of the City of Elgin at the said City in the County and State aforesaid this May 11, 1994 . City Clerk , (SEAL) �.•'s.� _.. NPT-01, Ri7CORDING $37.50 T$7777 TRAM 1230 05/18/94 i.44a 00 E FW "-94-4 -ir:,3245 :..00A ..:OUN 1 Y RG'.::JRDER • ..f�Y 4.Ji 1�--4.aR' _r_,{r _'L 4 Return to: Dolonna Mecum Elgin City Clerk 150 Dexter Court Elgin, IL 60120 �fp 3/,T' • Ordinance No. G18-94 AN ORDINANCE • PROVIDING FOR A REAL ESTATE TRANSFER TAX BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That Title 4 of the Elgin Municipal Code, 1976, as amended, be and is hereby amended by adding Chapter 4 .26 to read as follows : "Chapter 4 .26 REAL ESTATE TRANSFER TAX 4 .26 . 010 Definitions . "Beneficial Interest" : Any interest, regardlesss of how small or minimal such interest may be, in a land trust, held by a trustee for the benefit of beneficiaries of such land trust. "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 Cook or Kane County or the Registration of Deeds with the Registrar of Titles or Cook County, Illinois . "Value" : The amount of the full actual consideration for any transfer covered hereunder, including the amount of any mortgage or, other lien to which the sale is subject or the amount of any mortgage or other lien assumed by the grantee or, purchaser. 4 .26 . 020 Imposition of tax. A tax is imposed on the transfer of title to real estate located in the c 1.ty 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 944'y'�,�.< ,; 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 dollars ($1,000. 00) value or fraction- thereof as stated in the declaration. Exempt transactions under Section 4 .26 . 060 shall be subject to a processing fee of ten dollars ($10.00) per transfer. 4 .26 . 030 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; 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 4 .26 . 110 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 . 4 .26 . 040 Declaration forms . At the time the tax is paid, there shall also be presented to the finance director, 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 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 finance director. 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 trustee 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, licensed real estate salesman, 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. 4 .26. 050 Deeds . Every deed shall show the date of the transaction which it evidences, the names of the grantor and grantee, and a 2 • legal description of the property to which it relates, including permanent index number of the property which is the subject of the transfer. 4 .26 . 060 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 as the finance director may require: A. Transactions involving property acquired by or from any governmental body, or any transaction involving property acquired by and from corporations, societies, associations, foundations or institutions organized and operated exclusively for charitable, religious or educational purposes ( "charitable organizations" ) . The latter transaction is exempt only when one charitable 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 is less than one hundred dollars ($100 . 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 the deeds are pursuant to a court decree. H. Transactions made pursuant to mergers, consolidations, or transfers 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 or money's worth paid from one or the other shall not be exempt from the tax. 3 K. Transactions representing transfers subject to the imposition of a documentary stamp tax imposed by the government of the United States . L. A transfer by lease. M. Transactions of single family residences and condominium units wherein one of the grantors has continuously resided upon the property for the past one year and has evidence of a contract for sale as a purchaser for a residence within the city, such contract having closed within six months of the exempt transaction or to close by contract within six months after the exempt transaction. N. Transactions where a written contract for the sale of property was executed by the seller and the buyer prior to the effective date of this ordinance. 4 .26 . 070 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 provided by this chapter 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 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 tosuch receiver, nor upon redelivery or retransfer by any such transferee or successor thereto. 4 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) . 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 . 4 .26 . 080 Revenue stamps required. The tax herein levied and imposed shall be collected by the finance director for the city through the sale of revenue stamps, which shall be caused to be prepared by said finance director in such quantities as said finance director may from time to time prescribe. Such revenue stamps shall be in the denomination of $1. 00, $5.00, $10.00, $25.00, $50.00, $100 .00, $200.00, $300. 00 and $500.00, and shall be in the following design: Real Estate Transfer Tax Elgin $0000 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 finance director. 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 reuse by marking it with his initials and the say, 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 . The finance director may refuse to issue revenue stamps, although payment of the tax is offered, if any of the following conditions exist: A. Outstanding sum of money due the city from the property or property owners; B. Failure to register multiple family rental property subject to the city' s rental registration ordinance. 5 may : , ., `. C. Any other violation of the Elgin Municipal Code. D. Failure to have had a final read of the water meter or failure to have made final payment on any water or sewer bill . For the purpose of reviewing such request for stamps, the city shall process a request within three working days. 4 .26 . 090 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 finance director 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 . 4 .26 . 100 Transfers in trust. No trustee of real estate shall accept 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 article have been affixed to the assignment. 4 .26 . 110 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 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 Elgin revenue stamp in an amount equal to five (5) times the amount of county and 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 construed as preventing the city from bringing a civil action to collect the tax imposed by this section from any person who has the ultimate liability for payment of the same, including interest and penalties as hereinbelow provided. 4 .26 . 120 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 corporation counsel shall, upon request of the city manager, bring or cause to be brought an action to enforce the payment of said 6 tax, including interest and penalties as hereinbelow provided, on behalf of the city in any court of competent jurisdiction. 4 .26 . 130 Interest and penalties . In the event of failure by any person to collect and pay to the finance director 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 fifty percent (50%) 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. 4 .26 . 140 Proceeds of tax. All proceeds resulting from the imposition of the tax under this chapter including interest and penalties, shall be paid into the treasury of the city and shall be credited to and deposited in the general fund of the city. No refund of taxes paid in error for any reason shall be made after sixty (60) days from the date of the payment of said tax. 4 .26 . 150 Penalty for violation. In addition to the remaining provisions of this section, 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 of not less than two hundred dollars ($200 .00) nor more than one thousand dollars ($1,000 .00) . 4 .26 . 160 Effective date. These provisions shall be in full force and effect from and after July 1, 1994 provided, however, these provisions shall not apply to contracts executed prior to the passage of this ordinance. 4 .26 . 170 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 section 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 7 u r • this chapter would have been adopted had such unconstitutional or invalid provisions, clause, sentence, paragraph, section or part thereof not been included. " • Section 2 . That Section 14 .04 .230 entitled "Billing" of Chapter 14 . 04 of the Elgin Municipal Code, 1976, as amended, be and is hereby further amended by adding the following: "G. A request to the City of Elgin for a final reading of the water meter shall be made three (3) days prior to the date the final reading is requested. Upon receipt, the city shall take a final reading and prepare a bill to be submitted to the consumer or user for payment prior to issuance of any real estate transfer stamps . In the event a final reading is not possible prior to the transfer of property for which the real estate transfer stamps are required, the consumer or user shall pay one hundred fifty percent ( 150%) of the last bill or other reasonable amount as determined by the City of Elgin until a final reading is conducted. In the event the final reading shows that the consumer or user still owes the City of Elgin money, said consumer or user shall promptly pay to the City of Elgin any outstanding sums. In the event the final reading shows that the owner has paid in excess of the amount due, the city shall promptly refund any monies to consumer or user. " Section 3. That this ordinance shall be in full force and effect from and after its passage and publication in the manner provided by law. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: April 27, 1994 Passed: April 27, 1994 Vote: Yeas 4 Nays 3 Recorded: April 28, 1994 Published: April 28, 1994 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk This instrument prepared by: Erwin Jentsch Corporation Counsel City of Elgin 150 Dexter Court Elgin, IL 60120 8