As previously reported on Conduit Street, an IDOT Study Group was established in July by the State Department of Assessments and Taxation(SDAT) pursuant to Senate Bill 1302 of the 2012 special session, State and Local Revenue and Financing Act of 2012.   The Study Group is examining the impacts of imposing the recordation tax on indemnity mortgages and deeds of trust and assessing:

1. The expected tax revenues to be collected for local governments;
2. The impacts of the tax, if any, on the forms, volume, and value of commercial real estate transactions in urban, suburban, and rural areas of the State and on the overall commercial real estate market in the State; and,
3. The impacts of the tax, if any, on residential real estate transactions.

Much of the group’s efforts have focused on the need to gather data from local governments, banking institutions, commercial real estate developers, and the broader business community to determine the effects of imposing the recordation tax on these types of transactions. At its meeting on November 13, the study group was updated on these survey and data collecting efforts.  All members who are involved with these data collect efforts have been asked to have data and other information compiled and ready for discussion at the group’s next meeting on November 27.

During the meeting, there was much discussion about how counties are interpreting and applying the new law.  The Court’s Unit of the Attorney General’s office has provided a guidance document to assist counties in determining whether an IDOT is subject to the recordation tax.  The memo also specifies the documentation that should be presented when recording the transaction.