G18-94 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
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Return to:
Dolonna Mecum
Elgin City Clerk
150 Dexter Court
Elgin, IL 60120
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•
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
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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
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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.
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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.
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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
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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
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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