UPDATED August 23, 2022

Village of Oswego voters approved a referendum on June 28, 2022 that imposes a Real Estate Transfer Tax on the buyer of property within the Village. The approved rate is $3 per $1,000 of the property’s sale price.

Real estate transfer stamps

Buyers of all property located in the Village of Oswego are required to secure a real estate transfer stamp before recording the deed.

Learn more about the process and the documents needed to acquire a real estate transfer tax. Real estate agents are often able to assist with this transaction. 

All real estate transactions will require a transfer stamp, however, certain transactions are exempt from paying the real estate transfer tax. Oswego homeowners who have lived in their home for at least 12 months and are purchasing a new primary home in Oswego will not have to pay the fee. See a full list of exemptions and submit your request online. As of 8-23-22, a fee is no longer required for an exemption. 

Learn more about the process and the documents needed to acquire an exemption on the real estate transfer tax.

Real estate transfer tax purpose

The Village proposed requiring a real estate transfer tax as a way to fund the Village’s connection to Lake Michigan Water through the DuPage Water Commission, in which total cost is estimated to be upwards of $75 million. (Baxter & Woodman study, 1-13-22) The use of the transfer fee on property buyers helps offset the historical investment the community has made in its water system, reducing future water rate increases for all residents. All revenue generated by the real estate transfer tax is required to be deposited in the Water & Sewer Fund and can only be used for the construction and maintenance of the Village of Oswego water system. (Ordinance No. 22-24)

The Real Estate Transfer Tax referendum was approved by approximately 60 percent of voters in the June 28, 2022 election.

The real estate transfer tax is imposed by many Illinois municipalities to help offset the costs of infrastructure improvements such as roads, bridges, and sewers.

Real Estate Transfer Tax
Frequently Asked Questions

What is a real estate transfer tax? 
A real estate transfer tax is levied on the transfer of ownership or title of property from one individual or entity to another. The amount of the tax is based on the property’s purchase price.

How is it different than property taxes?
A real estate transfer tax is a one-time fee that is collected as part of the closing costs on the sale of a property. A revenue stamp is required to be attached to the deed filed with the county.  

Do current Oswego homeowners have to pay the real estate transfer tax?
No. Only new buyers would pay. Plus, current Oswego homeowners who purchase a new home in Oswego would be exempt if they have lived in their home for a year or more. (Ordinance No. 22-24 passed 4-5-22)

Who pays the real estate transfer tax?
New buyers of residential or commercial properties located within the village limits would be responsible for paying the tax. On April 5, the Board passed an ordinance exempting the tax from applying to current residents who own residential property and then purchase and move to another residential property within the Village. Other exemptions may apply.

What are some other Illinois communities that have a real estate transfer tax?

Why don’t all Illinois municipalities impose a real estate transfer tax?

Only municipalities with home rule status may impose a real estate transfer tax. Because the Village of Oswego enjoys home rule status as a municipality of more than 25,000 residents, it can place a referendum on the ballot to ask voters for approval to allow the real estate transfer tax on new buyers.

What is the real estate transfer tax rate?
The approved rate is $3.00 per $1,000 of the purchase price, or 0.3%. For example, the transfer tax on a property with a purchase price of $300,000 is $900.

How much money will be generated?  
The proposed tax provides a way for future residents to offset the impact of water rate increases when the Village connects to Lake Michigan water. We estimate that it will generate more than $500,000 per year. Without the tax, that amount would have to be generated through increased water rates.

What will the money be used for?
The adopting ordinance requires the funds to be deposited into the Water & Sewer Fund and used for the construction and maintenance of the Village of Oswego water system.

Where can I find information on submitting a request for the real estate transfer stamp? 
Learn more about Oswego's process and the documents needed to acquire a real estate transfer tax.

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