Land Use & Zoning
Chicago's additional transfer tax, commonly known as the 'Chicago transfer tax,' applies to:
AOnly commercial property transfers in Chicago
BAll real property transfers within the City of Chicago in addition to the state transfer tax✓ Correct
COnly residential property sales over $1 million
DOnly transfers involving corporation buyers
Explanation
Chicago imposes its own municipal real property transfer tax on all real property transfers within city limits, in addition to the state transfer tax. The Chicago transfer tax rate historically has been $3.
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Key Terms to Know
Transfer Tax
A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
State-Specific Concepts
Transfer Tax
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