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Chicago "CTA Portion" Transfer Tax Refund?

By Peter Olson, Esq.

Alright I'm confused already and it's only been effective 9 days...so we don't just have a real estate transfer tax in Chicago any longer now we have the "City's portion of the tax" and the "CTA's portion." Okay, the old tax (City portion) is the same old $7.50 per $1,000 to the Buyer. The new tax (CTA portion) is $3.00 per $1,000. We've reported on this subject several times before in this space.

However, now I've gotten this "CTA Portion of the Real Property Transfer Tax Refund Application" form and I'm totally stumped. Here's the language:

Section 3-33-060 (O) includes a refund for the CTA portion of tax for transfers to transferees who are age 65 years or older, who occupy purchased property as their personal dwelling for at least one year following the transfer, if the transfer price is $250,000 or less. This exemption is administered through a refund administered by the Chicago Tax Assistance Center of the city's Budget Office located at 121 N. LaSalle, City Hall, room 604. Application forms are also available online by clicking here.

What does this mean, i.e., who's eligible for the refund? 65 years and old and a transfer price $250k or less...ok, I understand that. But the refund relates to the CTA portion of the tax and the person must "occupy the property as the principal dwelling place for at least one year following the transfer." So we're refunding the Seller paid tax but in order to get the refund you must live in the property at least one year following the transfer (the property that you've just sold?).

So, who is eligible for this refund???

Is it like some suburbs where if you've paid a Seller transfer tax upon sale but then buy again in the same community, then you're eligible for some sort of refund of that Seller transfer tax? I haven't got a clue.

Full post as published by Closing Real Estate in Chicago on April 09, 2008 (boomark / email).