Chicago Mayor Brandon Johnson’s proposed “Bring Chicago Home” resolution, aimed at raising funds to combat homelessness through a new tax on real estate sales, is already meeting resistance from the city’s real estate industry. The resolution seeks to increase the real estate transfer tax on high-income properties, with the generated revenue going towards permanent support housing for the homeless population.

Currently, Chicago has a flat rate of 0.75% for all property sales. Under Mayor Johnson’s revised plans, properties above $1 million would face a 2% transfer tax, while properties above $1.5 million would have a 3% tax. However, the selling point to voters is that the tax rate would decrease for properties under $1 million, benefiting 96% of home sales in the city.

The real estate industry argues that this increase in taxes will discourage builders from investing in Chicago and ultimately lead to increased rental costs for tenants. Landlords who own multi-family buildings, which often exceed $1 million in value, would bear the brunt of this tax increase, pushing up operating costs that would be passed on to renters.

The opposition to the “Bring Chicago Home” resolution is expected to mount a well-organized and funded campaign, similar to the successful fight against the state’s graduated income tax. The Better Government Association warns that the opposition may have a strong message and considerable resources at their disposal.

However, before the resolution can become a reality, it must be approved by the Chicago City Council and placed on the ballot for residents to vote on. It will require more than 50% of the vote to pass.

Sources:
– 35th Ward Alderman Carlos Ramirez Rosa
– Tommy Choi, Illinois Real Estate Association
– Better Government Association President David Greising

Title: The Battle Over Chicago’s “Bring Chicago Home” Resolution