Benchmark Title Company, LLC

 

P-TAX 203 and P-TAX 203-B as to EASEMENTS

John Howe

 

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:  

John Howe
President

Doreen Miller, Esq.
Vice President and General Counsel

Michelle Null
VP Escrow Operations

Bethany Bond
Marketing Director


Serving you from three convenient locations:

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

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





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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