The vote to increase real estate transfer taxes in Illinois will be held on Wednesday, March 7th, 2007. It is bill SB 445 and proposes almost a $99,000,000 increase with some of the extra money going towards affordable housing, open space and natural areas.
At first sight, many homeowners might not feel the impact of this proposed bill. The reason is that because the increase changes depending on the sales price of the property as shown below:
- Properties sold $500,000 or under would actually decrease from $1.00 per thousand to $.80 per thousand. For those many property owners falling into this group, they would probably welcome the break. Not much of a break at a savings of $100 for a $500,000 property.
- A property sold at a price over $500,000 to $1,000,000 would be taxed at $3.00 per thousand vs. the current $1.00 per thousand. Now we're talking a bigger difference.
- A property sold for over one million dollars and up to three million would be taxed at $7.00 per thousand.
- Any property sold over three million would have to pay $10.00 per thousand. That's a huge difference from the current dollar per thousand.
Your first thoughts might be to let the higher priced properties pay more, but they already are just by the value of the properties to begin with. Many times the "little guys" seem to get less tax breaks and benefits and they might think that it's time the people with deeper pockets get hit. We're not always talking about single family residential sales though. This could affect farms or other business and commercial sales.
I suppose it's easy to say that anyone selling a property in the millions in Illinois should have to bear this increase, especially if it affords a decrease to the lower priced properties. The Illinois Association of REALTORS® opposes this bill and has sent out calls of action to all association members. The IAR asks you to contact your Senator to urge a NO VOTE on SB 445.