Voters will decide on March 19 whether to quadruple the tax paid by buyers of real estate worth more than $1.5 million. Real estate agents say it amounts to a secret tax and rent increase.
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The Illinois Court of Appeals reversed course on a proposal that would have required voters to raise the amount of taxes buyers pay on real estate transactions over $1 million to be on the ballot within two weeks. A lower court ruling last month This will keep the question out of the vote.
Realtors and groups representing the city’s commercial real estate industry challenged the measure in court, saying it amounted to a hidden property tax hike that would drive up the cost of living for everyone in the city.
Currently, buyers of residential and commercial real estate in Chicago pay a flat tax of 0.75% on all purchases, regardless of price. The measure would create a three-tier rate system.
For properties priced under $1 million, buyers will see a slight tax reduction, to 0.6%. The tax rate will increase to 2% for properties between $1 million and $1.5 million, and 3% of the purchase price for all properties above that price.
The measure was a key policy initiative of Mayor Brandon Johnson, who took office last year. The move was nearly overturned last month when a circuit court judge ruled in favor of a real estate group that challenged the measure.
The judge in the case did not elaborate on the reasons for her ruling, apparently leaving the appeals court with its own questions.
“Like all parties, we speculate as to the basis for the circuit court’s ruling because the lower court gave no reasons for its decision,” Chief Judge Raymond Mitchell wrote in the opinion reversing the circuit court’s decision. “The courts will not and cannot interfere with the legislative process.”
The opinion set the stage for a final push into the campaign, which didn’t officially begin until the City Council voted in November to include the measure in the March primary.
“As we’ve said since the trial court’s ruling, this harmful measure remains on the ballot, and we have not stopped working to educate voters,” said Jeff Baker, CEO of Illinois Realtors. Those suffering from housing instability should have a plan.”
“We are disappointed with the outcome of this case but believe it is important to challenge this misleading and manipulative referendum question,” said Farzin Parang, executive director of the Chicago Building Owners and Managers Association, which led the legal challenge. Farzin Parang said.
“Significant tax increases will harm homeowners, renters, union workers and businesses throughout our community,” Palang said. “What’s even worse is that a yes vote in this referendum is a vote that provides a huge blank check to city government, and There is no plan for how to spend millions of dollars responsibly.”
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