Loading...
HomeMy WebLinkAboutOrd 3833 09/01/1987ORDINANCE NO. 3833 AN ORDINANCE ADDING ARTICLE IX, REAL ESTATE TRANSFER TAX, TO CHAPTER 8 OF THE MUNICIPAL CODE OF THE VILLAGE OF MOUNT PROSPECT BY PROVIDING FOR A REAL ESTATE TRANSFER TAX PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES THE 1st DAY OF .September , 1987. Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the 2nd day of September, 1987. ORDINANCE NO. 3833 AN ORDINANCE ADDING ARTICLE IX, REAL ESTATE TRANSFER TAX, TO CHAPTER 8 OF THE MUNICIPAL CODE OF THE VILLAGE OF MOUNT PROSPECT BY PROVIDING FOR A REAL ESTATE TRANSFER TAX WHEREAS, the Village of Mount Prospect is a home rule municipality as defined and set forth in the Constitution of the State of Illinois and by the provisions thereof is empowered to enact such legislation pertaining to its local governmental affairs as is deemed necessary in the best interest of the Village; and WHEREAS, this Ordinance is being adopted pursuant to and by the Village as a home rule municipality~ NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the Village of Mount Prospect, County of Cook, Illinois as follows: Section 1: That Chapter 8 of the Municipal Code be amended by adding thereto Article IX, Real Estate Transfer Tax, as follows: ARTICLE IX REAL ESTATE TRANSFER TAX SECTION: 8.9. 1: 8.9. 2: 8.9. 3: 8.9. 4: 8.9. 5: 8.9. 6: 8.9. 7: 8.9. 8: 8.9. 9: 8.9.10: 8.9.11: 8.9.12: 8.9.13: 8.9.14: 8.9.15: 8.9.16: 8.9.17: 8.9.18: Definitions Imposition of Tax Primary Liability for Tax Declaration Forms Deeds Exempt Transactions Exemptions Revenue Stamps Required Real Estate Transfer Declaration; Filing Transfers in Trust Lien Created; Enforcement Enforcement; Suit for Collection Interest and Penalties Proceeds of Tax Penalty for Violation Effective Date Severability Payment of Delinquent Water and Sewer Charges 8.9.1 PERSON: RECORDATION: DEFINITIONS: Any natural person, receiver, administrator, executor, conservator, assignee, trust in perpetuity, trust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, Municipal corporation, political subdivision of the State of Illinois, domestic or foreign corporation, association, syndicate, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, and the United States or any instrumentality thereof. 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 thereof, and as applied to corporations, the officers thereof. The recording of deeds with the office of the Recorder of Deeds or the registration of deeds with the Registrar of Titles of Cook County, Illinois. -2- VALUE: The amount of the full actual consideration for any transfer covered hereunder, including the amount of any mortgage or other lien assumed by the grantee or purchaser. 8.9.2: IMPOSITION OF TAX: A tax is imposed on the transfer of title to real property located in the Village as evidenced by the recordation of a deed by any person or by the delivery of any deed or assignment of interest of said real property, made as of the first day of November, 1987, and thereafter, whether investing the owner with the beneficial interest in or legal title to said property or merely the possession or uae thereof for any purpose or to secure future payment of money or the future transfer of any such real property. The tax imposed shall be one dollar ($1.00) for every one thousand dollars ($1,000.00) value or fraction thereof as stated in the declaration. The term "deed" as used in this Article shall mean all documents transferring or reflecting the transfer of legal title, equitable title, or both legal and equitable title to real property, or the beneficial interest in a land trust. Delivery of any deed shall be deemed to have occurred when the transferee or purchaser, or his representative or agent, receives possession of the deed or in the case of a land trust when the trustee receives possession of a valid assignment of a beneficial interest. 8.9.3: PRIMARY LIABILITY FOR TAX: The primary liability for payment of said tax shall be borne by the grantee or purchaser involved in any such transaction unless otherwise negotiated by contract; provided, however, it shall be unlawful for the grantee or purchaser to accept a conveyance if the transfer tax has not been paid. If the tsx has not been paid and the stamps affixed to the deed, then the grantee's title shall be subject to the lien provided in Section 8.9.11 hereof and the grantee or purchaser shall be liable for payment of the tax. The tax herein levied shall be in addition to any and all other taxes. 8.9.4: DECLARATION OF FORMS: At the time the tax is paid, or an exemption applied for, there shall also be presented to the Director of Finance or his designee, on a form prescribed by him, a declaration signed by at least one of the sellers or grantors and also signed by at least one of the purchasers or grantees involved in the transaction, or by their attorneys or agents, or by a licensed real estate salesperson or broker having knowledge of the terms of the transaction, which declaration shall state the full consideration for the property so transferred and shall be deemed a confidential record by the Village Clerk. Where the declaration is signed by an attorney, agent, licensed real estate salesperson or broker, on behalf of sellers or buyers who have the power of direction to deal with the title to the real estate under a land trust agreement, the trustees being 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 having the power of direction, said attorney, agent, licensed real estate salesperson, or broker need only identify the land trust which is the repository of record legal title and not the beneficiary or beneficiaries having the power of direction under the land trust agreement. -3- 8.9.5 DEEDS: Every deed shall show the date of the transaction which it evidences, the names of the grantor and grantee, and a legal descrip- tion of the property to which it relates. 8.9.6 EXEMRT TRANSACTION: The tax imposed by this Chapter shall not apply to the following transactions, provided said transaction in each case is accompanied by a certificate setting forth the facts or such other certi- ficate of record or sworn statement as the Director of Finance may require at the time of filing of the declaration form: (A) Transactions involving property acquired from any governmental body; (8) Transactions in which the deeds secure debt or other obligations; (C) Transactions in which the deeds, without additional consideration, confirm, correct, modify or supplement deeds previously recorded; (D) Transactions in which the actual consideration is less than five hundred dollars ($500.00); (E) Transactions in which the deeds are tax deeds; (F) Transactions in which the deeds are releases of property which is security for s debt or other obligation; (G) Transactions in which the deeds are pursuant to a court decree where there is no consideration; (H) Transactions made pursuant to mergers, consolidations, or transfers or sales of substantially all of the assets of a corporation pursuant to plans of reorganization; (i) Transactions between subsidiary corporations and their parents for no consideration other than the cancellation or surrender of the subsidiary corporations's stock; Transactions wherein there is an actual exchange of real property except that the money difference or money's worth paid from one or the other shall not be exempt from the tax. (K) Transactions representing transfers subject to the imposition of a documen- tary stamp imposed by the government of the United States, except that such deeds shall not be exempt from filing the declaration. 8.9.7 EXEMPTIONS: The taxes imposed by this Chapter shalI not be imposed on or transferred by an executor or administrator to a legatee, heir or distributes where the transfer is being made pursuant to will or by intestacy. The tax imposed by this Chapter shall further be exempt where the transaction is effected by operation of law or upon delivery or transfer in the following instances, provided, however, that a declaration form is filed: (A) From a decedent to his executor or administrator; -4- (c) (o) (E) (F) (H) From a minor to his guardian or from a guardian to his ward upon attaining majority; From an incompetent to his conservator, or similar legal representative, or from a conservator or similar legal representative to a former incompetent upon removal or disability; From a bank, trust company, financial institution, insurance company or other similar entity, or nominee, custodian, or trustee therefor, 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 insti- tutions, or upon redelivery or retransfer by any such transferee or successor thereto: From a bankrupt or person in receivership due to insolvency to the trustee in bankruptcy or receiver, from such receiver to such trustee or from such trustee to such receiver, or upon redelivery or retransfer by any such tranferee or successor thereto: From a transferee under subsections (A) successor acting in the same capacity, another; through (E), inclusive, to his or from one such successor to From trustees to surviving, substitute, succeeding or additional trustees of the same trust; Upon the death of a joint tenant or tenant by the entirety to the survivor or survivors. 8.9.8 REVENUE STAMPS REQUIRED: The tax herein levied and imposed shall be collected by the Director of Finance or his designee for the Village through the sale of revenue stamps, which shall be caused to be prepared by said Director of Finance in such quantities as said Director of Finance may from time to time prescribe. Such revenue stamps shall be in the denomination of one dollar ($1.00), five dollars ($5.00), ten dollars ($10.00), Fifty dollars ($50.00), and one hundred dollars ($100.00). Such revenue stamps shall be available for sale at and during the regular business hours of the Village offices or at other locations designated by the Director of Finance. Upon payment of the tax herein levied and imposed, the revenue stamps so purchased shall be affixed to the deed or other instrument of conveyance. Any person so using and affixing a revenue stamp or stamps shall cancel it and so deface it as to render it unfit for use by marking it with his 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 bo prevent ready determination of its denomination and genuineness. -5- 8.9.9: 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 Village Clerk of the Village by the grantee of any deed or assignee 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 herein levied or imposed, whichever first occurs. 8.9.10: TRANSFER IN TRUST: No trustee of real estate shall accept or acknowledge an assignment of beneficial interest in real estate located in the Village without first obtaining a real estate transfer decla- ration from the assignor and assignee and unless revenue stamps in the required amount, as set forth in this Chapter, have been affixed to the assignment. 8.9.11: LIEN CREATED; ENFORCEMENT: In the event a deed is filed for recor- dation or there is an assignment of beneficial interest conveying reel estate within the corporate limits of the Village without the revenue stamps provided by this Chapter, s lien ia declared against said real estate conveyed in the amount of the tax. The fact that the deed or assignment does not contain a Village of Mount Prospect revenue stamp in an amount equal to two (2) times the amount of State transfer taxes shall constitute constructive notice of lien. The lien may be enforced by proceedings to foreclose, es in cases of mortgages or mechanics' liens. Suit to foreclose this lien must be commenced within three (3) years after the date of recording the deed. Nothing herein 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, including interest and penalties aa hereinbelow provided. 8.9.12: ENFORCEMENT; SUIT FOR COLLECTION: Whenever any person shall fail to pay any taxes herein provided, or any purchaser or grantee shall accept a conveyance where the tax has not been paid, the Village's Corporation Counsel shall, upon request of the Village Manager, bring or cause to be brought an action to enforce the payment of said tax, including interest and penalties as hereinbelow provided, on behalf of the Village in any court of competent jurisdiction. 8.9.13: INTEREST AND PENALTIES: In the event of failure by any person to collect and pay to the Director of Finance the tax required hereunder when the same shall be due, interest shall accumulate and be due upon said tax at the rate of one percent (1%) per month commencing aa of the first day following the day when the tax becomes due. In addition, a penalty of ten percent (10%) of the tax and interest due shall be assessed and collected against any person who shall fail to pay the tax imposed by this Chapter. 8.9.14: PROCEEDS OF TAX: All proceeds resulting from the imposition of the tax under this Chapter, including interest and penalties, shall be paid to the Village and shall be credited to and deposited in the general fund of the Village. -6- 8.9.15: PENALTY FOR VIOLATION: In addition to the remazning 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, upon conviction thereof, shall be punished by a fine of not less than two hundred dollars ($200.00) nor more than one thousand dollars ($1,000.00). 8.9.16: EFFECTIVE DATE: These provisions shall be in full force and effect as of November 1, 1987, provided, however, that these provisions shall not apply to contracts for the transfer of title or assignment of beneficial interest to real property executed prior to October 1, 1987. 8.9.17: SEVERABILITY: If any provision, clause, sentence, paragraph, section or part of this Chapter, or application thereof to any person or circumstance, shall for any reason be adjudged by a court of competent juris- diction to be unconstitutional or invalid, said judgment shall not affect, impair or invalidate the remainder of this Chapter and the application of such provision to other persons or circumstances, but shall be confined in its operation to the provision, clause, sentence, paragraph, section or part thereof directly involved in the controversy in which such judgment shill have been rendered and to the person or circumstances involved. It is hereby declared to be the legislative intent of the Village Board of Trustees that this Chapter would have been adopted had such unconstitutional or invalid provisions, clause, sentence, paragraph, section or part thereof not been included. 8.9.18: PAYMENT OF DELINQUENT WATER AND SEWER CHARGES: The Director of Finance shall issue no transfer tax stamps unless the Village Collector verifies that any delinquent water and sewer assessments and penalties related thereto are paid in full, and unless the declaration form contains information necessary for the billing and collection of the final water and sewer assessment charges. -7- Section 2: That this Ordinance shall be in full force and effect from and after its passage, approval, and publication according to law. AYES: Arthur, Farley, Floros, Van Geem, NAYS: Murauskis, Wattenberg ABSENT: None Krause PASSED AND APPROVED THIS 1st day of September, 1987 ~illage President Village Clerk -8-