Chicagoans to Decide on Increase in Real Estate Taxes

Increase in Real Estate Taxes

On Tuesday, Chicagoans will vote on whether to raise taxes on real estate transfers over $1 million. This is to gather funds for affordable housing and helping homeless people.

The proposed change will decrease property transfer taxes for most Chicago residents. For transfers under $1 million, the tax would be $3 for every $500, down from the current $3.75 flat rate.

However, there would be new tax brackets for high-end properties, like many downtown office buildings. For transfers between $1 million and $1.5 million, the tax would be $10 for every $500, and $15 beyond that.

Supporters of the “Bring Chicago Home” measure, led by Democrats, believe it would bring in an extra $100 million yearly for homeless services.

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This change would align Chicago’s tax system with other big cities like San Francisco and Philadelphia, says Carlos Ramirez Rose, the alderman for Chicago’s 35th ward.

He reassures people, saying, “This isn’t a big scary change,” and criticizes the misinformation spread by wealthy organizations.

The majority of home purchases in Chicago are under $1 million, so most residents would pay less tax under this plan.

However, some landlords and managers of expensive properties disagree. They argue it could hurt efforts to attract tenants to downtown office towers, especially after the challenges posed by COVID-19.

Like in other cities, many Chicagoans face rising rents and home prices. Illinois law requires any property tax changes to be approved by voters.

According to the Chicago Coalition for the Homeless, over 68,000 Chicagoans were without permanent housing in 2021, highlighting the need for action.

ALSO SEE: Chicago is evicting migrants from shelters, causing resident outcry over a lack of respect.

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