Chicago Real Estate Transfer Tax Hike Will be Paid by Seller
Buyers can relax as sellers pick up the tab on the new real estate transfer tax increase that will take effect at the beginning of next month. A previous decision that would require home buyers to cover the cost of the April 1st tax hike was overturned in a unanimous vote by Chicago City Council yesterday. A proposal to shift the additional tax ($3 per $1,000 of the sale price) to the seller was approved on Wednesday, 49-0.
Now, instead of buyers paying all $10.50 per $1,000 of the home price, they will continue to pay $7.50 (same as before) and the seller will be responsible for the balance (added to the $1.50 per $1,000 they already pay to the county and state).
The proposal, which was initiated by Alderman Patrick O’Connor of the 40th Ward and endorsed by Mayor Daley, was introduced as a way to more fairly divide the real estate transfer taxes between property purchaser and seller. It applies to both residential and other types of real estate. The increase was instated as a way to solve the Chicago Transit Authority (CTA) funding issue.
Posted at 05:12PM Mar 13, 2008 by Spencer Mason in General Comments[1]
The second highest is Cicero at $10/$1,000.
Seller can qualify for a refund of the transfer tax they paid if the transferees are age 65 years or older, the transferees occupy purchased property as their personal dwelling for at least one year following the transfer, and if the transfer price is $250,000 or less. Note the sellers are still required to pay the tax
at closing and then petition the city for refund.
Posted by Edward Balcsik on May 13, 2008 at 04:31 PM CDT #