Local Election on the North Shore

An important referendum was on the November 7, 2006, ballot for residents of Evanston: "Should the City increase its real estate transfer tax by $1 for every $1,000 of property value in the sales price?" This referendum was turned down by the voters; the final count was 6,218 "yes" votes, and 6,681 "no" votes.

What IS a transfer tax? Municipalities have the option of levying a tax, sometimes referred to as transfer stamps, when a residential property changes ownership. The funds that the town accumulates are then used for city services of some sort. In the case of Evanston, the addition increase was earmarked to be "...deposited in the Affordable Housing Tax Fund to provide a source of funding for the creation, maintenance and improvement of safe and decent affordable housing in order to enhance the preservation and maintenance of the City's cultural and economic diversity." (text from the City of Evanston own pamphlet that was mailed to city residents prior to the election day) Read the complete pamphlet text online at this link: http://www.cityofevanston.org/government/clerk/transfer.shtml

The existing Evanston transfer tax remains at $5.00 for every $1,ooo of the selling price of a property. For example, a home that sells for $100,000 would be taxed by the City of Evanston in the amount of $5.00 x 100, a total of $500. This is typically paid by the property SELLER.

Other communities in the greater Chicagoland area have transfer tax rates that exceed Evanston's rate, and some are less then Evanston's rate. Shopping for a home includes being aware of closing costs, whether there is a transfer tax, and who pays for the transfer tax. Each community has a tradition of who pays the tax, but this is negotiable if the conditions are ripe for discussion.