Chicago Real Property Transfer Tax

DEPARTMENT OF REVENUE
CITY OF CHICAGO
ROOM 107 – CITY HALL
CHICAGO, ILLINOIS 60602-1207

I do hereby promulgate and publish the flowing Transfer Tax Ruling #1 this 15th day of April, 1994 pursuant to the authority vested in me by the Municipal Code of Chicago, Illinois, sections 2-80-040 (h), 3040030-140.

Judith C. Rice
Director of Revenue
City of Chicago
CHICAGO REAL PROPERTY TRANSFER TAX

Real Property Transfer Tax Ruling #1
Subject: Real Estate Cooperatives
Effective Date: April 28, 1994

Section 1. The Chicago Real Property Transfer Tax Ordinance (the “Ordinance”) chapter 3-33 of the Municipal Code of Chicago (“M.C.C.”) imposes a tax on the privilege of transferring title to, or beneficial interest in, real property located in the city of Chicago (M.C.C. 3-33-030 (A)). Section 3-33-020(A) of the Ordinance provides that a beneficial interest in real property includes, but is not limited to, the beneficial interest in an Illinois land trust, the lessee interest in certain ground of lessee, and the indirect interest in real property as reflected by the controlling interest in a real estate entity (emphasis added).

Section 2. For purposes of section of 3-33-020(A), and ownership interest in a real estate cooperative also constitutes a beneficial also constitutes a beneficial interest in real property. Therefore, the tax is impose whenever persons owing stock or trust beneficial interests in a real estate cooperative transfer their interest to another person. See 775 ILCS 5/3-101(A) (defining “real property” to include “interests in real estate cooperatives” for purposes of article 3 of the Illinois Human Rights Act). Similarly, the tax is imposed whenever person’s transfer of a single share of stock in a real estate cooperative is taxable.

Under the terms of the Ordinance, the transfer price used to compute the amount of the tax is only that portion of any consideration paid to a transferee that is attributable to the transfer of the beneficial interest in real property. See M.C.C. 3-33-020 (H).