Real Estate Transfer Tax Referendum Passed By More Than 60% Of Voters

OSWEGO, IL — People buying property in Oswego will soon start to be taxed an extra one-time fee thanks to a referendum that passed by about 60 percent of local voters, according to village officials.

The tax could go into effect as soon as Aug. 1, village officials said Wednesday.

Under the real estate transfer tax, people who buy residential or commercial properties within Oswego will pay the village 0.3 percent — or $3 per $1,000 — of the purchase price. For example, the transfer tax on property with a $300,000 purchase price would be $900.

The reason for the tax is to help fund Oswego's connection to a new water source: Lake Michigan, via the DuPage Water Commission. It's expected to generate more than $500,000 a year, Patch reported.

The tax won't apply to current Oswego residents who purchase a new home in Oswego as long as they've lived in their space for a year or more, Patch reported. Village Board passed an ordinance on April 5 exempting current homeowners.

Under the same ordinance, the proceeds are required to be deposited in the Water and Sewer Fund and can only be used for the water system's construction and maintenance.

RELATED: Village Of Oswego Could Adopt Real Estate Transfer Tax

Instead of increasing taxes on current residents, officials said they wanted to shift the burden to future residents and businesses who purchase property in town.

In April, Village President Troy Parlier said residents "have been asked to carry the burden for far too long."

Oswego is not the only community that imposes a real estate transfer tax. Neighboring towns including Aurora, Bolingbrook, Naperville, Joliet and Romeoville also impose transfer taxes.