Bannockburn weighs merits of referendum for transfer tax on property sales

Residents in Bannockburn, a small community outside Chicago, may have a chance to vote against a referendum on the ballot in November which would implement transfer taxes on real estate sales.

According to the Deerfield Review article, the village’s Board of Trustees will determine whether or not to put the measure on the ballot after an Aug. 13 public hearing.

The proposal would call for a $1 per every $1,000 of sales cost tax to be placed on real estate transactions. These so-called transfer taxes can add to the burden buyers and sellers must take on to live in an Illinois community.

Illinois communities struggling to make budgets balance often turn to taxes such as this one. The transfer taxes in the state add to already high property taxes. According to the article:

Village President Frank “Bud” Rothing said the primary purpose of the tax was not additional revenue, but knowing when property changed hands so the village can get a better handle on cross connections between water going into storm or sanitary sewers.

Mike Scobey, director of of local advocacy for Illinois REALTORS® said the village should be able to figure out sewage compliance issues without having to resort to a tax. From the article:

“Buyers who will own the property will be paying a lot in property taxes,” Scobey said. “They do not need another tax. The property taxes they pay are enough.”


By |2018-07-24T21:32:59+00:00July 3rd, 2018|Property Taxes|Comments Off on Bannockburn weighs merits of referendum for transfer tax on property sales

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