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HomeMy WebLinkAbout5. NEW BUSINESS 02/20/2007 INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: .~~~ >> 1 ~I~O ( . .' ~~l".,.. ~ '~'-b".'" -~ .' -"i, ....~ ORDINANCE AMENDING CHAPTER 8, ARTICLE 8 OF THE VILLAGE CODE FOR REAL ESTATE TRANSFER TAX MICHAEL E. JANONIS, VILLAGE MANAGER TO: DIRECTOR OF FINANCE DATE: FEBRUARY 16, 2007 SUBJECT: PURPOSE: To present for the Board's consideration an ordinance amending certain sections of Chapter 8, Article 8 of the Village Code for Real Estate Transfer Tax. BACKGROUND: Chapter 8, Article 8 of the Village Code imposes a tax on the transfer of certain interests in real estate in the village. The liability for the payment of the tax rests with the buyer. Village Code currently permits a rebate of a portion of this tax for persons who sell real estate while purchasing a second or subsequent property in Mount Prospect. In addition, the Code defines what a taxable event is that triggers the tax liability and how the tax amount is calculated. DISCUSSION: At the January 16, 2007 Village Board meeting an amendment to the Village Code relating to the application for rebate of the real estate transfer tax was presented to the Board for approval. During discussion of this item, additional questions were raised regarding the period allowed to apply for the rebate. At the direction of the Board, staff was asked to further research the matter and bring it back for discussion at a later date. In addition to a review of the two-year period for applying for a rebate, staff also looked into what transactions are eligible for a rebate and how consideration (or value of the transfer) is determined. The attached ordinance will amend Chapter 8, Section 8 of the Village code for Real Estate Transfer Tax for the following: 1. Tightens criteria for persons eligible for a tax rebate on the purchase of a second or subsequent residence within the Village and reduces the period in which a person is entitled to the rebate from two (2) years to one (1) year. /\ 14/--. I - '~ ~ Ordinance Amending Village Code for Real Estate Transfer Tax February 16, 2007 Page 2 2. Adds language preventing rental and investment properties from becoming eligible for the rebate. 3. Eliminates language for the treatment of court ordered transfers if the decree is a decree of divorce. Additional backup materials for the proposed amendments are included with this memo for your review. RECOMMENDATION: It is recommended the Village Board approve the attached ordinance amending Chapter 8, Article 8 of the Village Code for Real Estate Transfer Tax. ,c!J-ur;/ ~ U- DAVID O. ERB DIRECTOR OF FINANCE DOEI 1:\Real Estate Transfer Tax\Ordinance Cover memo. doc Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE DATE: FEBRUARY 8, 2007 SUBJECT: REVIEW OF CHAPTER 8 ARTICLE 8 OF THE VILLAGE CODE FOR REAL ESTATE TRANSFER TAX At the January 16, 2007 Village Board meeting an amendment to the Village Code relating to the application for rebate of the real estate transfer tax was presented to the Board for approval (Attachment I). During discussion of this item, additional questions were raised regarding the period allowed to apply for the rebate. At the direction of the Board, staffwas asked to further research the matter and bring it back for discussion at a later date. In addition to a review of the two-year period for applying for a rebate, staff also looked into how consideration or the value of the transfer was being determined. A copy of Article 8 of the Village Code is included as Attachment II. The provision that permitted the two-year grace period for qualifying for the rebate was adopted on February 20, 1996. Section 8.804 (A) (2) of the Code states that Within two (2) years of the date of selling the previous residence located within the village, the person purchased and currently occupies a single-family residence, townhouse or condominium within the village as his or her principal residence and paid the appropriate tax on that house. Previous to this change, the grace period was one year. The change was made to be consistent with IRS regulations. At that time the IRS permitted a two-year window regarding the reinvestment of capital gains from the sale of a home. Since that time the IRS Code has changed so this regulation is no longer applicable. Attachment III are the Minutes from the February 10, 1996 Coffee with Council meeting that include discussion on this. Staff is recommending that the grace period for becoming eligible for the rebate be changed to one year. We are also recommending a change to subparagraph G to remove the presumption of consideration with respect to real estate transfers pursuant to a divorce decree. About five years ago, we amended our ordinance to expand the definition of consideration so that we might treat virtually every real estate transaction as a taxable event. Subsequent to that amendment, we have interpreted the definition to include intra-family tax planning transfers, parental mortgage forgiveness and court ordered divorce transfers as taxable events. Most real estate transfer tax ordinances do not tax these types of Real Estate Transfer Tax February 8, 2007 Page 2 transactions and persons involved in them have a difficult time understanding why they should be taxed when no money has changed hands. This expanded definition has marginally increased our revenues, but has exponentially increased hard feelings when we inform residents of our broad interpretation of consideration for transfer tax purposes. In consultation with the Village Attorney, it appears that, except for the divorce decree language, we can simply adopt an administrative policy that narrows our interpretation of consideration to be consistent with the state law on real estate transfers. We are, however, asking that the Village Board "bless" this administrative policy change. We truly believe that is not worth the amount of hard feelings that the broad application of consideration engenders with residents. Please review this information and let me know if you have any questions. I would like to request that this item be placed on the agenda for discussion at the February 13 Committee of the Whole meeting. {~P~ tC David O. Erb Director of Finance DOE! 1:\Real Estate Transfer Tax\Followup Memo - February 2007.doc Attachment I Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE DATE: JANUARY 11,2007 SUBJECT: AMENDMENT OF CHAPTER 8 ARTICLE 8 OF THE VILLAGE CODE FOR REAL ESTATE TRANSFER TAX PURPOSE: To present for the Board's consideration an ordinance amending the Village Code for handling the application for rebate for the real estate transfer tax. BACKGROUND: Chapter 8, Article 8 of the Village Code imposes a tax on the transfer of certain interests in real estate in the village. The liability for the payment of the tax rests with the buyer. Village Code currently permits a rebate of a portion of this tax for persons who sell real estate while purchasing a second or subsequent property in Mount Prospect. DISCUSSION: The current Village Code for this section states only that an owner must have owned and occupied the property in question to obtain the rebate, but does not specify the timeframe for the occupation. The amendment being proposed specifies that the owner must have owned and occupied the dwelling as his or her primary residence within two years of the date of sale. The intent of the proposed code change is to ensure that only dwellings that are owner/occupied properties and not rental properties qualify for the rebate. RECOMMENDATION: It is recommended the Village Board approve the attached ordinance amending Chapter 8 of the Village Code entitled "Application for Rebate." DAVID O. ERB DIRECTOR OF FINANCE DOE/ 1:\Real Estate Transfer Tax\Application for Rebate - January 2007.doc Attachment II ARTICLE VIII REAL ESTATE TRANSFER TAX 8.801: DEFINITIONS: PERSON: Any natural person, trustee, receiver, administrator, executor, conservator, assignee, trust in perpetuity, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, domestic or foreign corporation, association, syndicate, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise. 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, and as applied to corporations, the officers. RECORDATION: The recording of documents transferring applicable interests with the office of the recorder of deeds of Cook County, Illinois. VALUE: The amount of the full actual consideration for any transfer covered bv this article. includina the amount of any mortaaae. lien or liens assumed bv the arantee or purchaser. fOrd. 5157. 12-19-2000. eff. 1-1-2001) 8.802: LOCAL REAL ESTATE TRANSFER TAX IMPOSED: A. Imposition of Tax: A tax is imposed on the privilege of transferring certain interests in real estate in the village. For purposes of this tax, transfer shall include the execution and delivery of any of the following: 1. Deed; 2. Assignment of title or other beneficial interest; 3. A lease or similar contract for a term of more than thirty (30) years (including assignment or reassignment); 4. Articles of agreement to convey deed or similar document upon the future payment of money. B. Corporate Transfer: Transfer shall also include any corporate buyout, merger, or stock transfer, where the real property in the village is specifically valued or specifically set forth as consideration or a portion of the consideration, for any transfer or assignment of corporate equity. C. Circumstances of Transfer: This tax shall apply to the transfer of any of the foregoing interests in property that is located within the village and shall include, but not be limited to, the following circumstances: 1. The transfer purports to vest either a beneficial interest in or legal title to the real estate. 2. The interest transferred is only the possession or use of the real estate so long as consideration is paid for the possession or use. 3. Even if the consideration is to be paid in the future or the actual transfer is to be made in the future as under articles of agreement. D. Rate Of Tax: 1. Except as otherwise provided in section 8.804 of this article, the tax shall be at the rate as set forth in appendix A, division II of this code. If the real estate is transferred subject to a mortgage or similar lien or an existing mortgage is to be assumed by the transferee, the outstanding balance of the mortgage shall be added to any other consideration paid for the real estate interest. If a transaction is determined to be exempt pursuant to this article, a fee shall be assessed for the exemption seal as set forth in appendix A, division II of this code. 2. This tax shall be in addition to any and all other taxes. E. Liability For Payment: The primary liability for payment of the tax shall be borne by the grantee or purchaser. It shall be unlawful for the grantor or seller to convey real property in the village and for the grantee or purchaser to accept a conveyance if the transfer tax has not been paid. If the tax has not been paid, then the grantee's title shall be subject to the lien provided in section 8.811 of this article and the grantee or purchaser shall be liable for payment of the tax. F. Transfers In Trust: No trustee of real estate shall accept an assignment of beneficial interest in real estate located in the village without first obtaining a statement of consideration from the assignor and assignee and unless revenue stamps in the required amount have been affixed to the assignment. G. Property Ineligible For Transfer: No interest in property may be transferred from one person to another if the property is in violation of any building regulation or if the transferor of the property owes any judgment, fee or fine of any kind or nature to the village. The sole exception shall be if the transferor or transferee obtains a letter from the department of community development stating that the department has approved the transfer in order to achieve the correction of any violations. H. Investigation Of Documentation; Immunity: The village shall attempt to expeditiously comply with any request for transfer stamps or an exemption. In any instance, the village shall have at least three (3) business days to process the application. Under no circumstances shall the village, its agents, officials or employees have any liability of any kind or nature for any failure of the real estate transaction to close or a document to be recorded because the village attempted to verify the nature of the transaction or amount owed. The applicant shall have the right under all circumstances to pay the amount that the village asserts to be due. If proof is provided that the amount paid was not the actual amount due, the appropriate amount will be refunded. (Ord. 5157, 12-19-2000, eft. 1-1-2001; amd. Ord. 5189, 5-15-2001) 8.803: TAX ON TRANSFER OF INTERESTS IN LEASEHOLDS GREATER THAN THIRTY YEARS: Leasehold interests of greater than thirty (30) years shall be taxed as follows: A. Upon the execution of a lease, the tax shall be paid on the present value of the net lease amount that is payable over the term of the lease. Net lease amount shall exclude tax and utility payments. Present value shall be figured using the interest rate paid on one year U.S. treasury bills on the date of execution of the lease. B. If the entire lease amount is paid in a lump sum, then the tax shall be figured on the lump sum. c. If the transaction involves the transfer or assignment of an exiting leasehold interest, then the tax shall be figured on the value of the consideration paid for the transfer plus the present value of the remaining lease term. This shall be due even if the remaining lease term is less than thirty (30) years provided the original lease was for more than thirty (30) years. (Ord. 5157, 12-19-2000, eff. 1-1-2001 ) 8.804: APPLICATION FOR REBATE: Any person who has paid the real estate transfer tax at the rate set forth in appendix A, division II of this code, shall be entitled to a rebate on the purchase of a second or subsequent property in Mount Prospect. This rebate shall be at the rate set forth in appendix A, division II of this code, provided that proper application is made to the village finance department and further provided that the person provides proof of the following: A. Residential Property: 1. The person shall have owned and occupied a single-family residence, townhouse or condominium unit within the corporate boundaries of the village as his or her principal residence. Such single-family residence, townhouse or condominium unit must have been soid within two (2) years of the date of the application for rebate; and the transfer tax of $3.00/$1,000.00 must have been paid on such transfer; and 2. Within two (2J years of the date of sellina the orevious residence located within the vil/aoe. the person purchased and currently occupies a sino/e-family residence. townhouse or condominium within the vil/aoe as his or her principal residence and paid the appropriate tax on that house: or B. Nonresidential Properly: 1. The person shall have owned and operated a duly licensed business within the corlJorate boundaries of the vil/aoe and the prooerty on which the business was located was sold: and there was a transfer tax of $3.00/$1.000.00 paid on such transfer: and 2. Within two (2) years of the date of sale of the IJrevious business IJroperly located within the vil/aoe. the oerson ourchased nonresidential IJroperly in the vil/aoe and currently olJerates a duly licensed business at the oroperly and paid the approoriate tax on that business prooerly. Within thirty (30) days following the receipt of application for rebate of real estate transfer tax, the director of finance shall verify the information provided. If, in the opinion of the director of finance, the applicable criteria has been met the director of finance shall cause the rebate to be issued to the person applying for the rebate. (Ord. 5157,12-19-2000, eff. 1-1-2001; amd. Ord. 5189, 5-15- 2001 ) 8.805: DECLARATION FORMS: This section has been affected by a recently passed ordinance, ORDINANCE NO. 5576: VILLAGE GOVERNMENT. Go to new ordinance. A. Declaration Of Consideration: At the time the tax is paid, or application is made for an exemption, there shall also be presented to the director of finance, on a prescribed form, a declaration of consideration signed by at least one of the sellers or grantors and by at least one of the purchasers or grantees involved in the transaction. The declaration may be signed by an attorney or agent, or by a licensed real estate salesperson or broker having knowledge of the terms of the transaction. The declaration shall state the full consideration for the property and shall be deemed a confidential record. If the property is in a land trust and the trustees are 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, then only the land trust and not the beneficiary or beneficiaries needs to be identified. B. Certificate Of Payment Of Water And Sewer And Garbage Collection Charges: In order to obtain stamps or an exemption seal, the applicant must satisfy the village that all water, sewer and garbage collection charges have been paid in full. (Ord. 5157,12-19-2000, eff. 1-1-2001) 8.806: DOCUMENT OF CONVEYANCE: Every document of conveyance shall show the date of the transaction that it evidences, the names of the grantor and grantee, and a legal description of the property to which it relates. (Ord. 5157, 12-19- 2000, eff. 1-1-2001) 8.807: EXEMPT TRANSACTIONS: The tax imposed by this chapter shall not apply to the following transactions: A. A governmental body is the grantee; B. The document of transfer only assures that the property secures a debt or other obligation; C. The document of transfer, without additional consideration, confirms, corrects, modifies or supplements a previously recorded document; D. Transactions in which the actual consideration is less than the amount set forth in appendix A, division II of this code; E. The deed is a tax deed; F. The deed is a release of property which was security for a debt or other obligation; G. A court ordered the transfer and no consideration was paid for the transfer (if the decree is a decree of divorce, consideration shall be presumed according to section 8.802 of this article or unless satisfactory documentary evidence to the contrary is presented); H. A transfer between a subsidiary corporation and a parent for no consideration other than the cancellation or surrender of the subsidiary corporation's stock; I. An actual exchange of real property when both properties are within the village limits, except that the money difference or money's worth paid for one or the other shall not be exempt from the tax; J. Transfers subject to the imposition of a documentary stamp imposed by the government of the United States, except that such deeds shall not be exempt from filing the declaration; K. Conveyances of partition; L. Leasehold interests of a lessee occupying the premises as a residence; M. Any leasehold interestthe term of which is less than thirty (30) years. (Ord. 5157,12-19-2000, eft. 1-1-2001; amd. Ord. 5189,5-15-2001) 8.808: EXEMPTION FOR WillS, GUARDIANSHIPS AND CONSERV A TORSHIPS: No tax shall be imposed by this article upon delivery or transfer in the following instances, provided, however, that a declaration form is filed: A. Transfers by will or intestacy; B. A decedent to an executor or administrator; C. A minor to a guardian or from a guardian to a ward upon attaining majority; D. An incompetent to a conservator, or similar legal representative, or from a conservator, or similar legal representative to a former incompetent upon removal of disability; E. A bank, trust company, financial institution, insurance company or other similar entity, or nominee, custodian, or trustee, 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, or upon redelivery or retransfer by any such transferee or successor; F. A bankrupt person or a person in receivership to trustee or receiver, or upon redelivery or retransfer by any such trustee or receiver back to the bankrupt or person in receivership; G. Trustee to a surviving, substitute, succeeding or additional trustee of the same trust; H. Upon the death of a joint tenant or tenant by the entirety to the survivor or survivors. (Ord. 5157, 12-19-2000, eft. 1-1-2001) 8.809: REVENUE STAMPS REQUIRED: This tax shall be collected by the director of finance through the sale of revenue stamps. Such revenue stamps shall be available for sale from eight thirty o'clock (8:30) A.M. to five o'clock (5:00) P.M., Monday through Friday at the village offices or at other locations designated by the director of finance. Prior to recording, the revenue stamps shall be affixed to the deed or other instrument of conveyance. Any person affixing a revenue stamp or stamps shall mark it with his or her initials and the day, 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 the domination and genuineness. (Ord. 5157, 12-19-2000, eff. 1-1-2001) 8.810: STATE 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 director of finance by the grantor of any deed or assignor 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, whichever first occurs. (Ord. 5157, 12-19-2000, eft. 1-1-2001) 8.811: LIEN CREATED; ENFORCEMENT: If a document of conveyance is filed for recordation or there is an assignment of beneficial interest conveying real estate within the corporate limits of the village without the purchase of revenue stamps in the required amount, a lien is declared against the real estate in the amount of the tax. The fact that the document of conveyance does not contain an exemption seal or a village revenue stamp in an amount equal to three (3) times the amount of 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. A suit to foreclose this lien must be commenced within three (3) years after the date of recording the deed. Nothing shall be construed as preventing the village from bringing a civil action to collect the tax imposed by this chapter from any person who has the ultimate liability for payment of the same. Such suit shall include interest and penalties. (Ord. 5157, 12-19-2000, eft. 1-1-2001) 8.812: ENFORCEMENT; SUIT FOR COLLECTION: Whenever any person fails to pay any tax pursuant to this article, or any purchaser or grantee accepts a conveyance where the tax has not been paid, the village shall bring or cause to be brought an action to enforce the payment of the tax, including interest and penalties on behalf of the village in any court of competent jurisdiction. (Ord. 5157,12-19-2000, eff. 1-1-2001) 8.813: INTEREST AND PENALTIES: In the event of failure by any person to pay to the director of finance the required tax when due, or to file a return when due, interest and penalties shall accumulate and be due consistent with sections 8.2009 and 8.2010 of this chapter as it may from time to time be amended. (Ord. 5157, 12-19-2000, eft. 1-1-2001) 8.814: PROCEEDS OF TAX: All proceeds resulting from the imposition of the tax under this article including interest and penalties, shall be paid to the village and shall be credited to and deposited in the general fund of the village. (Ord. 5157, 12-19-2000, eff. 1-1-2001) 8.815: NONCOMPLYING DOCUMENT OF TRANSFER: Any transfer of real property or assignment of beneficial interest recorded or registered in violation of any portion of this article shall be null and void. The village may bring an action in a court of competent jurisdiction to direct the recorder of deeds to indicate the invalidity of the deed or trust document on the records. (Ord. 5157, 12-19-2000, eff. 1-1-2001) 8.816: CONSTRUCTION OF EXEMPTIONS: All exemptions from the taxes imposed by this article shall be strictly and narrowly construed, and all other provisions of this article shall be broadly construed in order to give effect to the intent of this article, which is to tax all transfers of real property within the village, unless specifically exempt. (Ord. 5157,12-19-2000, eff. 1-1-2001) 8.811: SEVERABILITY: If any provision, clause, sentence, paragraph, section or part of this article, or application to any person or circumstance, shall for any reason be adjudged by a court of competent jurisdiction to be unconstitutional or invalid, the judgment shall not affect, impair or invalidate the remainder of this article and the application of such provision to other persons or circumstances. The judgment shall be confined in its operation to the provision, clause, sentence, paragraph or section directly involved in the controversy in which such judgment shall have been rendered and to the person or circumstances involved. It is the legislative intent of the village board of trustees that this article would have been adopted had such unconstitutional or invalid provision, clause, sentence, paragraph, section not been included. (Ord. 5157,12-19-2000, eff. 1-1-2001) 8.818: PENALTY FOR VIOLATION: In addition to the remaining provisions of this chapter, 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 shall be punished by a fine in the amount set forth in appendix A, division III of this code. (Ord. 5518, 11-1-2005) CHAPTER 8 - VillAGE GOVERNMENT MISCEllANEOUS PROVISIONS Section 8.802: LOCAL REAL ESTATE TRANSFER TAX IMPOSED: Real property transfer tax: $3.00 for every $1,000.00 value or fraction of $1,000.00. Exemption seal: $15.00. Section 8.804: APPLICATION FOR REBATE: $2.00 for each $1,000.00 of the purchase price, so long as all of the requirements of this section are met. Section 8.807: EXEMPT TRANSACTIONS: Actual consideration: Less than $5,000.00. CHAPTER 8 - VillAGE GOVERNMENT MISCEllANEOUS PROVISIONS Section 8.818: PENALTY FOR VIOLATION: Penalty and fine: Not less than $500.00. ~~~ Attachment III Minutes COFFEE WITH COUNCIL February 10, 1996 The meeting was called to order by Trustee Timothy Corcoran at 9:00 a.m. Other Trustees present were George Clowes, Paul Hoefert andlrvana Wilks. Also present were Assistant Village Manager David Strahl and Police Chief Ronald Pavlock. Village residents present were Carol Tortorello, Ernie Lasse,. Martin Kobler, Frank Smith, AI Boldt, Chris Campos, Greg Paradowiczand Chris Lenz. Carol Tortorello (233 S. Elmhurst Avenue) requested the Village Board m.embers reconsider the real estate transfer tax waiver. and that it be extended from one year to. two, in order to be. consistent with IRS regulations. Trustee Corcoran suggested that this matter be -referred to the Village Manager for a possible future Committee of the Whole meeting', and aSKed that the resident receive an answer from the Village within the, next.two or three weeks as to a status update of her request. Ernie Lasse (805 S. Elm St.), Martin Kobler (1711 W. lincoln St.) And Greg Paradowicz (1102 S. Cherrywood), expressed. their concerns with the Northwest Suburban Special Education Organization (NSSEO) going into Westbrook School. These residents were concenied with the. lack of. notification by the School District, . ,...., . whether or not the curriculum of the NSSEO would meet Mount Prospect's Zoning Code definition ofupublicschool.," whether the Village Board could do anything about the change of use, and whether legislation could be passed to prohibit this situation from occurring again. The resiQents also expressed concern of the perceived impact these types of students would have on police services. Trustee Ccncoran responded by ~tating that there may be nothing that the Village could do about the School District's current plans for the school, but we could look into legislation to possibly prevent this from happening in the future. . . Trustee Clowes gave examples of other situations in the community where organizations not governed by the Village. Board were reviewed and guidelines were established. The examples he gave were a religious use of residential property and home...based businesses. He also discussed the parallel between the situation at Westbrook School and Citizens Utifity, and the fact that the Village Board took official action in the past when the issues of rate changes or I.ack of service occurred in the Citizens Utility area. Trustee Corcoran stated the Village was informed about the School District's plans at approximately the same time as the citizens. Any notice to area residents would be part of a rezoning and hearing, but since no hearing was necessary the notice was not required. However, the means in which this agreement was arrived at by the School District may be an issue with their constituents which the School District should ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 8 ENTITLED "VILLAGE GOVERNMENT; MISCELLANEOUS PROVISIONS" OF THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION 1: Section 8-804 entitled "Application for Rebate" of Chapter 8 entitled "Village Government; Miscellaneous Provisions" of the Mount Prospect Village Code shall be amended by deleting subparagraph (A) of Section 8-804 in its entirety and inserting in lieu thereof a new subparagraph (A) which shall be and read as follows: A. Residential Property: 1. Within one year of making the application for a rebate, the applicant shall have: a. Owned and occupied a single family dwelling unit in the Village of Mount Prospect as his or her principal residence and then sold that same dwelling unit; and b. Paid the transfer tax of $3.00/$1,000.00; and then 2. Within one year of the date of selling the same residence referred to in (1) above, the applicant shall have: a. Purchased and be occupying a single-family dwelling unit within the Village as his or her principal residence; and b. Have paid the appropriate tax on that house; or SECTION 2: Section 8-804 entitled "Application for Rebate" of Chapter 8 entitled "Village Government; Miscellaneous Provisions" of the Mount Prospect Village Code shall be amended by adding the following language to the third and final paragraph of subparagraph B: For purposes of this section, "owning and operating a business" on any premises shall not mean for the business of construction, remodeling, selling or holding for sale that particular premise. iManage 186543 1 SECTION 3: Article VIII, entitled "Real Estate Transfer Tax", Section 8-807 entitled "Exempt Transactions" of Chapter 8 entitled "Village Government; Miscellaneous Provisions" of the Mount Prospect Village Code shall be amended by deleting the following language from subparagraph G: "(if the decree is a decree of divorce, consideration shall be presumed according to section 8.802 of this article or unless satisfactory documentary evidence to the contrary is presented):" SECTION 4: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2007 Irvana K. Wilks, Mayor ATTEST: M. Lisa Angell, Village Clerk H:\CLKO\files\WIN\ORDINANC\chapter 8, realestate transfertaxfeb20,2007.DOC iManage 186543 I