The City of Chicago is proposing an amendment to Section 3-33 of the Municipal Code to change the rates for assessing transfer taxes and to eliminate the exemption from taxes for foreclosure deeds. It provides that Transfers in which the deed or other instrument of transfer is issued to the mortgagee or creditor pursuant to a mortgage or security interest in foreclosure proceeding or sale, or pursuant to a transfer in lieu of foreclosure, the transfer tax shall be paid by the grantee when the real estate transfers are registered. The other change alters the amount of the tax. Instead of a flat tax based on the sale or transfer price taxes will be assessed on the fair market value if that is greater than the transfer price. A copy of the ordinance is attached.
The amendment was sent to the finance committee on December 17, 2009. That committee meets on Febraury 9, 2009.
Watch this space for further developments.
Author
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Solomon has nearly two decades of experience representing financial institutions, real estate investors and privately owned business entities. Solomon concentrates his practice in the areas of banking, consumer financial services, real estate, business law and related litigation and appellate practice.
