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P-TAX 203 and P-TAX 203-B as to EASEMENTS
TheP-TAX
203 and P-TAX 203-B as to EASEMENTS
It is our hope that this will clear up some misunderstanding of the Transfer
Tax rules relative to easements and other rights. Form 203-B must be filed
along with the normal P-Tax 203 form when you are transferring a beneficial
interest in real property in the State of Illinois, and the transfer tax due
must be paid. Remember, both forms MUST be submitted.
The Illinois Department of Revenue considers an easement to be a type of
beneficial interest in real estate and therefore subject to the IDOR
Administrative Code. A tax is imposed on the privilege of transferring
title to real estate or a beneficial interest in real property that is
located in the State of Illinois.
The following definition is taken directly from the instructions on the P-Tax
form 203-B;
“A tax is imposed on the privilege of transferring title to real estate or a
beneficial interest in real property located in Illinois. A Beneficial
Interest includes, but is not limited to, the lessee interest in a ground
lease, the indirect interesting real property as reflected by a controlling
interesting a real estate entity, or any other type of interest with the
right to occupy real property or the right to receive income from real
property.”
A ground lease is subject to the tax if it is for a term in excess of 30
years when all of the options to renew or extend are included.
A controlling interest transfer is defined as more than 50% of the fair
market value of all ownership, or beneficial interest in, a “real estate
entity”. A “real estate entity” is defined as a person or entity that exists
or acts substantially for the purpose of holding directly or indirectly title
to or beneficial interest in real property.
Examples, but not all inclusive, of other types of transfers of a “beneficial
interest” include air rights, co-operative housing rights, condominium
rights, development rights, easements, mining rights, royalty interests,
timber rights and time share rights.
If the transfer of easement is exempt under paragraph “e”, you must include
the exemption statement on the easement, dated and signed. If the transfer is
exempt under paragraph “b”, “d”, or “m”, both forms must be completed and
submitted with the easement.
See the form, available at the County Recorders office, for details on
determining how to calculate the value of the transfer and the amount of the
tax.
Any questions can be directed to
Benchmark Title at 618-239-3750. Please feel free to call or
email:
Serving you from three convenient locations:
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Main Office:
1124 Hartman Lane
Shiloh, IL 62221
Ph: 618-239-3750
Escrow Fax: 618-239-3707
Title Fax: 618-239-3757
Fax Orders: 618-310-1589
President: John Howe
www.benchmarktitle.net
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318 North Main St.
Columbia, IL 62236
Ph: 618-281-9700
Fax: 618-281-9705
Manager: Randi
Schur
4215 S. State Rte 159
Glen Carbon, IL 62034
Ph: 618-288-1695
Fax: 618-288-1852
Manager: Sara Sowell
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Dates to Remember
February 22-24 - Metro-East 2008 Home Improvement Show at
Belle Clair Fairgrounds, 200 S. Belt East, Belleville, IL
Friday, Feb. 22, 2pm - 9pm, Saturday, Feb. 23, 10am - 9pm, Sunday, Feb. 24,
11am - 5pm
February 22, 2008 - RPAC Trivia Night at 7 p.m. at Bel-Air
Bowl. Contact RASI for more information.
February 27, 2008 - Realtor Business After Hours at
Cutter's in Belleville @ 5:30 p.m. No RSVP required.
March 6, 2008 - Benchmark Title
Commercial Reception in Honor of Doreen Miller and the Commercial
Division from 4:00 p.m. - 7:00 p.m.
1124 Hartman Lane, Shiloh, IL. Please R.S.V.P. to Kim at (618)
239-3750.
March 15, 2008 - RASI Awards Banquet.
March 28, 2008 - GGAR Annual Awards Banquet at Collinsville
Gateway Center, Collinsville, IL
Reception 6 pm, Dinner 7 pm, Awards Presentation 8:30 pm, Comedian Mark
Morfey 9:30 - 10 pm
$30 per person in advance, reservations required by March 12- Fax to
618-692-8307 or Email to general@gatewayrealtors.com
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Customer Feedback
Line
After your closing please call our customer feedback line at (618)310-1307
ext. 26 and leave your comments. We will send you a token of our appreciation
for your time.
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