Chicago voters appear to have nixed the city’s real estate transfer tax referendum proposal.
With 98% of votes counted, the “no” votes were ahead of “yes” votes 54% to 46%. The unofficial tally from Tuesday’s election includes roughly 300,000 votes total, with more than 166,000 opposed.
The transfer tax for all properties in Chicago is 0.75%. The referendum proposed to increase the tax on properties sold for more than $1 million.
The tax would have increased to 2% on properties sold for between $1 million and $1.5 million; the tax would have increased to 3% on properties sold for more than $1.5 million. However, for properties that sold for less than $1 million, the tax would have dropped to 0.6%.
Known as the Bring Chicago Home resolution, the funds generated were meant to alleviate homelessness, as well as help children, veterans and abuse survivors. Bring Chicago Home is a centerpiece of Mayor Brandon Johnson’s plan to address those issues, although few specifics were given on how to spend the projected revenue.
On March 11, the Building Owners and Managers Association of Chicago (BOMA/Chicago) filed an appeal to discount the referendum from the ballot, hoping the Supreme Court of Illinois would hear — and rule — on the case before the election. That didn’t happen.
“We are grateful to everyone who spoke out against the constant real estate tax increases in our city,” said Farzin Parang, BOMA/Chicago executive director. “This massive tax increase would hurt homeowners, renters, union workers and businesses across Chicago. Homelessness is a critical problem, and all stakeholders must be at the table to solve it. We hope that both sides of this issue will be invited together to develop a detailed plan that provides genuine support to the homeless while bolstering our city’s competitiveness and protecting all workers who depend on it.”
On its website, the Chicago Assocation of REALTORS said it agrees with Johnson that homelessness in Chicago is a serious issue that needs to be addressed. But the association does not believe that an increase in the transfer tax is the way to solve it.
“As REALTORS, we would like to work with Mayor Johnson’s administration to develop a comprehensive plan that addresses this important issue of housing affordability and stability,” the association said. “We believe there is a lack of affordable/middle-income housing, lack of inventory, low construction starts, high building costs, bureaucracy in zoning and hurdles to development that should be simplified to encourage investment.”