The City of Chicago, like many other Illinois home rule municipalities, imposes a real estate transfer tax on the transfer of real property in the City. A group of residents recently challenged the City’s imposition of that tax on transfers to and from Freddie Mac and Fannie Mae, arguing that the tax was preempted by federal law that expressly exempts governmental entities from state and local taxation. The City defended its tax, arguing that these organizations were not “governmental bodies” so they were not exempt from taxation. In a recent ruling, the Appellate Court agreed, upholding the circuit court’s dismissal of the lawsuit. Trilisky v. City of Chicago.