Chicago City Wire

Early voting has commenced in all 50 Chicago wards for the upcoming March 19 primary election, where residents will decide on Chicago Mayor Brandon Johnson’s contentious real estate tax hike proposal. The measure aims to increase the transfer tax on properties valued over $1.12 million, potentially impacting over 5,000 commercial properties in the city if approved.

According to a new analysis from Illinois Policy, 5,142 businesses in Chicago could face higher taxes if sold, including various establishments such as supermarkets, motels, gas stations, theaters, and bowling alleys. Among the affected properties are well-known landmarks like Pequod’s, Lou Mitchell’s, The Vic Theatre, Waveland Bowl, and Mr. Beef.

Director of fiscal and economic research at Illinois Policy, Bryce Hill, expressed concerns about the impact of the tax hike, stating, “This is really a tax on mom-and-pop shops, restaurants, and entertainment venues. Chicago’s business sector is already on shaky ground. Making it harder to start, operate, and sell businesses is the last thing the city needs.”

Hill also criticized the lack of transparency in Johnson’s proposal, highlighting that the generated revenue from the tax increase could be used for any initiatives loosely related to “homelessness,” potentially creating a slush fund for Chicago politicians. He warned, “That’s a dangerous move for Chicagoans when the business community is already suffering under record taxes, vacancies, and crime.”

Illinois Policy experts are offering to provide insights through Zoom or in-person interviews to help voters understand the implications of Johnson’s real estate tax hike on Chicagoans. For more information on the proposal, interested individuals can visit illin.is/biztaxhike.