Village Of Oswego Could Adopt Real Estate Transfer Tax

OSWEGO, IL — On the upcoming Election Day, June 28, local voters will see an additional question on their ballot asking for approval of a one-time real estate transfer tax. If passed, people who buy property in Oswego will have to pay a little extra.

Under the proposed tax, people who buy residential or commercial properties within Oswego would 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 transfer tax differs from standard property tax, as it would be a one-time fee levied on the transfer of ownership or title of property from one person to another. Oswego would join neighboring towns of Aurora, Bolingbrook, Naperville, Joliet and Romeoville that also have a transfer tax.

Current owners who purchase a new home in Oswego would be exempt from the tax if they have lived in their space for a year or more, village officials said.

If approved, the tax could go into effect as soon as Aug. 1, officials said. The money, according to the village, could help fund Oswego's connection to a new water source: Lake Michigan, through the DuPage Water Commission.

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As a village with home rule status, Oswego has the choice to place a referendum question on a ballot to impose the transfer tax, per Illinois law. The Oswego Village Board unanimously approved adding the ballot question at its April 5 regular meeting in hopes of lessening the burden on current residents, according to officials.

Village President Troy Parlier said the new tax would be "only fair," since "current residents have been asked to carry the burden for far too long."

"We want to alleviate the burden on Oswego residents who have been paying property taxes and find another funding source to bring drinking water to our community," Parlier said in a statement. "If passed, a real estate transfer tax will help shift the burden to future residents and businesses who purchase property in our community."

Officials expect the tax to generate more than $500,000 per year, and without it, they expect the amount would have to come from increased water rates.

The money would be used "for construction and maintenance of the Village of Oswego water system, including connection to Lake Michigan water, and lessening the increase in future water rates." The language of the question that will be posed on ballots will limit the use of tax revenue to those items, according to village officials.

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