Real Estate Transfer Tax Changes Information Sheet - Illinois Department Of Revenue
ADVERTISEMENT
1
2FY 2004-15
Illinois Department of Revenue
Real Estate Transfer Tax Changes
May, 2004
Informational Bulletin
To:
All persons or entities transferring a beneficial interest in
Brian A. Hamer
real property located in Illinois
Director of Revenue
Public Act 93-657 amends the Illinois
For paper versions of
What is a real estate entity?
Real Estate Transfer Tax Law.
Form PTAX-203 and
A “real estate entity” is any person
Effective June 1, 2004, the tax is
Form PTAX-203-B,
including, but not limited to, any
imposed on the privilege of transfer-
partnership, corporation, limited
visit the county
ring the following additional types of
liability company, trust, other entity,
recorder’s office.
beneficial interests in real property:
or multi-tiered entity that exists or
acts substantially to hold direct or
the lessee interest in a ground
For electronic
indirect title to or beneficial interest
lease for a term of 30 or more
versions of Form
in real property.
years; and
PTAX-203 and Form
the indirect interest in real prop-
Generally, an entity meets this
PTAX-203-B,
erty as reflected by a controlling
definition if it owns, directly or indi-
visit our web site at
interest in a real estate entity.
rectly, real property with a fair
market value greater than 75 per-
Before June 1, 2004, these transac-
retd.
cent of the total fair market value of
tions were not taxed by the State of
all its assets. Do not deduct any
Illinois.
mortgage, lien, or encumbrance,
This informational bulletin explains
when you make this determination.
the additional types of beneficial
When is a controlling
interests now subject to the tax;
interest transfer subject to
what forms must be completed;
and
the tax?
how much tax is owed.
A controlling interest transfer that
includes more than 50 percent of
When is a ground lease
the fair market value of all owner-
subject to the tax?
ship interests or beneficial interests
A ground lease with at least a
in a real estate entity is subject to
30-year term is subject to tax. Be
tax.
sure to include any expired portion
Note: Interests will be aggregated if
and all options to renew or extend
there is a series of related transfers
the lease when you calculate this
within a rolling 24-month period. For
30-year requirement.
more information, see Form
Note: Any interest of the lessee in
PTAX-203-B instructions.
improvements on the parcel is also
subject to tax.
Printed by authority of the State of Illinois
310 copies - 5/04 - P.O. Number 2041334
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial