Chicago Voters Reject Increase to City’s Transfer Tax on High-Value Properties

Chicago voters reject high-value property transfer tax increase, leaving progressive goal unmet

In a Tuesday referendum, Chicago voters rejected a proposed increase to the city’s transfer tax on high-value properties, a blow to Mayor Brandon Johnson and progressive Democrats who aimed to address homelessness in the city with the new revenue. The Associated Press reported that the vote came after days of counting ballots, including mail-in votes, that were not able to be reported on Election Day.

Real estate groups had warned that the proposed tax increase could have devastating effects on the downtown office market, which was already struggling with vacancies and declining value. The vote highlighted the uncertainty of the political landscape in Chicago, a Democrat-dominated city where homelessness has become more visible due to the pandemic and an influx of migrants has strained resources.

Supporters of the tax increase saw it as an opportunity to level the playing field and provide much-needed assistance to the city’s most vulnerable residents. However, opponents questioned the timing and wisdom of the proposed solution, particularly as office tower owners were already facing challenges from the post-Covid shift towards remote work.

The referendum called for raising transfer taxes on properties selling for more than $1 million while lowering the rate on properties selling for less. Supporters referred to it as a “mansion tax” and argued that it was necessary to address the growing issue of homelessness in the city.

Despite the defeat of the tax increase, the issue of homelessness continues to be a pressing concern in Chicago. Different methods of counting the city’s homeless population have yielded varying estimates, with some suggesting that as many as 68,000 people in the city were homeless in 2021.

The defeat of the tax increase raises questions about the strength of the city’s progressive movement, led by Mayor Johnson, and the future of efforts to address homelessness in Chicago. While the referendum may have failed, the issue of homelessness remains a critical issue that will require ongoing attention and solutions from city officials and community members alike.