©Reuters. The skyline is seen in Chicago, Illinois, U.S., October 19, 2017. REUTERS/John Gress/File Photo
(In 5th paragraph, corrects spelling of alderman’s last name to Ramirez-Rosa, not Ramirez Rose)
By Eric Cox
CHICAGO (Reuters) – Chicagoans will vote in Tuesday’s primary election on whether to raise the tax rate on real estate transfers worth more than $1 million to raise money for affordable housing and fight homelessness.
The ballot measure would reduce property transfer taxes for the vast majority of Chicago residents, to $3 for every $500 of a transfer price under $1 million, from the current flat rate of $3.75 .
But it would create new swathes at the most expensive end of the city’s real estate market, including many of the office buildings that fill the Chicago skyline, with a tax rate of $10 for every $500 of the transfer price between $1 million and $1.5 million. of dollars, and 15 dollars more.
Supporters of the “Bring Chicago Home” measure on the City Council, led by Democrats, estimate that the changes would bring in an additional $100 million each year that would go toward services to address homelessness.
The new tax structure would bring Chicago in line with San Francisco, Philadelphia and other major U.S. cities, according to Carlos Ramirez-Rosa, the alderman who represents Chicago’s 35th District.
“This is not a big scary change,” he said. “A lot of the fear and misinformation comes from some of the richest entities in the world.”
About 93% of all home purchases in Chicago are for less than $1 million and would see a tax break, the board said.
Some owners and managers of more expensive properties oppose the measure. The Building Owners and Managers Association of Chicago says it would hinder efforts to revitalize downtown office towers, which have struggled to retain tenants in the wake of the COVID-19 pandemic.
As in other American cities, many non-affluent Chicago residents must contend with rising rents and home prices. Illinois law requires the board to submit any property tax changes to voters before they can be implemented.
According to a recent report from the Chicago Coalition for the Homeless, which advocated for the tax change, more than 68,000 Chicagoans were left without permanent housing at some point in 2021, the latest year for which data was available.
(This story has been refiled to correct the spelling of Councilor Ramirez-Rosa’s last name, not Ramirez Rose, in paragraph 5)