Chicago City Wire

The Chicago City Council on Tuesday approved a proposal to ask voters in a binding referendum if the city should boost property transfer taxes on properties priced at over $1 million to increase funding to battle homelessness. The so-called "Bring Chicago Home" referendum on the March ballot will allow voters to decide the fate of one of Mayor Brandon Johnson's top campaign issues.

The referendum, which passed the City Council in a 31-17 vote — calls for creating a three-tiered transfer tax system to raise $100 million a year earmarked to reduce homelessness.

The referendum question asks if the City of Chicago shall impose:

- A real estate transfer tax decrease of 20% to establish a new transfer tax rate of $3 for every $500 of the transfer price, or fraction thereof, for that part of the transfer price under $1,000,000;

- A real estate transfer tax increase of 166.67% to establish a new transfer tax rate of $10 for every $500 of the transfer price or fraction thereof, for that part of the transfer price between $1,000,000 and $1,500,000 (inclusive);

- A real estate transfer tax increase of 300% to establish a new transfer tax rate of $15 for every $500 of the transfer price, or fraction thereof, for that part of the transfer price exceeding $1,500,000.

Currently, it is obligatory for buyers unless they are exempt from the tax solely by operation state law. In this case, it's up on the seller's shoulders. The existing rate stands at $3.75 per $500 regardless of size or cost with all revenue used for general corporate purposes.

With this new proposition, additional funds obtained from increased rates would be directed toward addressing homelessness in Chicago by providing permanent affordable housing and the necessary services to sustain it.