Illinois REALTORS® Local Governmental Affairs Director (GAD) Michael Bailey is actively encouraging the Village of Oak Park to waive their transfer taxes in certain transactions. Advocating on behalf of Oak Park Area Association of REALTORS® (OPAAR), Bailey has been educating stakeholders on the consequences of high transfer taxes.

“With today’s competitive market, many of these homes sell ‘for asking’ or ‘over asking,’ affecting the availability of affordable housing, pricing many potential buyers out of the market,” Bailey said. “This is exacerbated by Oak Park’s transfer tax, one of the highest enacted within the entire state at $8 per $1,000. For reference, only three other communities have a transfer tax that is higher than Oak Park’s. To cover the cost of the transfer tax, sellers may artificially increase the sales price of their home to cover the cost of these taxes. As a result, Oak Park’s transfer taxes can account for between 20 – 50 percent of the total closing costs on a home.”

Illinois REALTORS®’ white paper on Oak Park’s transfer tax, which was also presented to the village, explains that this exemption has been implemented in nearby communities like Elmwood Park, Elmhurst, Park Forest, Wheaton and others. Oak Park’s transfer tax rate, coupled with high interest rates, has also created an environment where homeowners “lock-in,” refusing to sell or consider buying. This has created a disruption in the housing life cycle, creating a barrier to mobility. Because of these exorbitant costs, Bailey advocated to Oak Park’s Finance Committee recently, “Oak Park should credit back its municipal transfer tax to sellers who want to remain in the community.”

Stay tuned for more updates on Bailey and the pursuit of this policy change.