Illinois real estate transfer tax money goes to 85 park projects in matching state grant funds

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Torbert says the funding allows communities to build their open spaces, create opportunities for outdoor recreation and also boost the local economy. (Photo courtesy: Flickr)

By Illinois Radio Network

SPRINGFIELD – More than 85 communities from across the state will receive matching grants totaling nearly $30 million to add to or improve their parks and outdoor recreation spaces.

The funds, which come from the real estate transfer tax, are awarded under the Outdoor Space Land Acquisition and Development program, which is operated by the Illinois Department of Natural Resources. More than $400 million has been awarded for 1,700 projects since the program’s inception in 1987.

“It is one of our most popular programs,” said Rachel Tolbert, IDNR’s deputy director and assistant chief of staff for communications.

Real estate transfer taxes have faced criticism for putting downward pressure on home or business lot sales and can be seen as an “exit tax” when applied to the sale of homes. In Illinois, a home sale is subject to a 75 cent per $500 state and county tax. Then, the local town or city may apply their own tax, the highest being $10 per $1,000 of sale value. A home in Peoria, for example, could sell for $150,000 and owe a total of $487.50 for being sold.

Chicago Mayor Lori Lightfoot was pushing for state lawmakers to allow her to add higher taxes to properties worth more.

Tolbert said communities apply for many reasons.

“It could be that maybe the community just doesn’t have a lot of a lot of outdoor recreation opportunities and so this will add to that,” she said. “And that could be something that attracts more people to the area and will expand that tax base. And as more people move into the area, maybe it’s something that will expand job opportunities.

“But, more than anything I think it really just facilitates the spirit of community in these rural or even urban areas, in smaller communities, because it allows a place for people to get out to enjoy the outdoors, to enjoy outdoor recreation with their neighbors and with their local communities. So it fosters that community spirit,” she said.

Because OSLAD has been around for more than three decades, she said, most counties in the state have some outdoor recreational facility that was completed with the help of OSLAD funding.

“It’s a program that we’re extremely proud of and that we see an incredible amount of benefit from for the local communities,” Tolbert said.

Illinois Radio Network can be reached at [email protected].

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