City of Chicago v. Elm State Property LLC

Illinois Appellate Court
Civil Court
Real Estate Taxes
Citation
Case Number: 
2016 IL App (1st) 152552
Decision Date: 
Thursday, December 22, 2016
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div.
Holding: 
Reversed.
Justice: 
HOWSE

City imposed tax on transferring title to, or beneficial interest in, real property located in the city, via City of Chicago Real Property Transfer Tax Ordinance. Defendants had lack of control with a mortgage's security interest in property, even when those mortgages were in default, and thus assignment of rents provision did not grant Defendants ownership interest in properties necessary to constitute a beneficial interest. Remedies available to a mortgagee when a mortgage is in default do not grant mortgagee the degree of control necessary for ownership. Thus, assignment of a mortgage in default does not convey a beneficial interest in real property, and city cannot assess a tax on mortgage assignments to Defendants.(ELLIS and BURKE, concurring.)