Vote in Chicago Primary Election to Increase Real Estate Transfer Tax for Affordable Housing

Chicagoans to Vote on Real Estate Transfer Tax Increase to Fund Affordable Housing and Fight Homelessness

Chicago residents will have the opportunity to vote in Tuesday’s primary election on a ballot measure that could increase the tax rate on real estate transfers worth over $1 million. The proposed tax increase aims to raise funds for affordable housing and to combat homelessness in the city.

The “Bring Chicago Home” measure would lower property transfer taxes for the majority of Chicago residents, with a flat rate of $3 for every $500 of a transfer price under $1 million. However, new tax brackets would be created for properties valued over $1 million, with rates of $10 for every $500 of the transfer price between $1 million and $1.5 million, and $15 beyond that.

Supporters of the measure, led by Democrats in the City Council, estimate that the changes would generate an additional $100 million annually, which would be dedicated to services aimed at addressing homelessness in the city. According to Carlos Ramirez Rose, the alderman representing Chicago’s 35th ward, this tax structure would bring Chicago in line with other major U.S. cities like San Francisco and Philadelphia.

While about 93% of home purchases in Chicago fall below the $1 million threshold and would see a decrease in their tax bill, some landlords and property managers of more expensive properties are opposed to the measure. The Building Owners and Managers Association of Chicago believes that the tax increase could hinder efforts to revitalize office towers downtown, especially in the aftermath of the COVID-19 pandemic.

Like in many other American cities, rising rents and home prices have become a challenge for non-wealthy Chicago residents. Illinois law mandates that any property tax changes must be approved by voters before being implemented.

According to a recent report by the Chicago Coalition for the Homeless, over 68,000 Chicagoans experienced homelessness at some point in 2021. The organization has been advocating for the tax change as a means to provide more resources for those in need.

The outcome of Tuesday’s vote will have significant implications for the future of affordable housing and homelessness initiatives in Chicago. Stay tuned for the results to see how this proposed tax increase could impact the city’s real estate landscape.