May 12, 2017
Sample letter to write or email to Legislators
Dear:
The Home Builders Association of Illinois supports passage of HB3826 (Fortner/Connelly) and requests a YES Vote on its consideration in the Senate Revenue Committee. HB3826 received unanimous approval in the House of Representatives, and is also supported by the Illinois Association of Realtors.
HB3826 prohibits home rule municipalities from collecting a real estate transfer tax on homes for which an impact fee has been assessed and collected. The legislation has no effect on State or County transfer taxation.
Collecting impact fees and transfer taxes is a form of double taxation which greatly burdens Illinoisans who wish to buy a new home. With passage of HB3826, home rule municipalities may choose to charge impact fees or transfer taxes on a new home, but not compound the expense by collecting both.
Impact fees are assessed and collected early in the development process and they become an overhead expense in the price of the new home.
A transfer tax is recorded on the HUD application and it can become an issue in determining whether a buyer(s) can afford the down payment, closing costs, and mortgage. The buyer pays the full tax at closing, which creates a great barrier to entry for home ownership.
Illinois is still in the housing recession that began nine years ago. We are 50th in the country in new home construction based upon a ratio of building permits to state population, a position we’ve maintained for over five years.
Please Vote Yes on HB3826, a bill to end double taxation on new home ownership in Illinois. If you have any questions or concerns, please call or write our lobbyist, Bill Ward, at: (217) 753-3963 or billward@hbai.org.
Sincerely,
