When real estate transfers from seller to buyer, the State of Illinois collects $1 per $1000 of the purchase price. In addition, Chicago (Cook County) imposes an additional transfer tax amount of $7.50 per $1000, which, effective April 1 (no joke), and much to the chagrin of home sellers, buyers, and real estate professionals, will increase by $3.00 to $10.50 per $1000.
In essence, this will produce more [negative] financial burden on an already struggling real estate market, players in the market, and Chicago's overall economy. Ultimately, what we can actually expect to see is a 40% increase in selling prices of all commercial and residential real estate.
Sellers normally pay these taxes from the proceeds of the sale of their property, although buyers in the neighborhood of Lincolnshire assume the burden. I suggest that you consult with a REALTOR®, title company, or county offices in your jurisdiction, for verification on who pays.
In the end, we can ALL expect to pay! The question asked most often is, "Where, exactly, will the funds go?" Some believe the tax money is supposed to go towards rebuilding our infrastructure. Speculation has it that this is another "fat" tax, and that it will end up in the pockets of the administrators of our deteriorating transit systems.
Comments(4)