HB3826 Summary

• Home rule municipalities may impose or increase taxes on real estate transfers, including transfers of beneficial interests and controlling interests in real estate entities, subject to voter approval by referendum.

• Municipalities must hold a public hearing with 10-30 days' notice before submitting a real estate transfer tax to referendum, and must make the proposed ordinance available for public inspection.

• New real estate transfer taxes or rate increases require prior referendum approval, though existing ordinances may be amended without referendum if they do not increase the tax rate or add new taxable transactions.

• Municipalities with populations exceeding 1,000,000 may increase an existing real estate transfer tax by up to $1.50 per $500 of value within 6 months of the Act's effective date without referendum, with revenue directed to the Chicago Transit Authority.

• Real estate transfer taxes cannot be assessed on first sales of newly constructed residential structures where impact fees have been collected, except in the City of Chicago and except that deed filings for Property Tax Code declarations are still required.