Pursuant to City of Chicago Municipal Code 3-33, 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 of 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 additional, 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”).
Thus, the true tax rate for real property transfers is $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.
The following exemptions are allowed:
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 instrument 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 instrument 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
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