A key policy item of first-term Mayor Brandon Johnson was raising about $100 million through a real estate sales tax increase.
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Voters appeared to reject a ballot measure that would have raised taxes paid by real estate buyers above $1 million, a surprise blow to first-term Chicago Mayor Brandon Johnson.
Johnson and supporters, especially the city’s powerful teachers union, hope the referendum will pass and generate what they say is $100 million in annual revenue to support concrete efforts to help address the city’s homelessness problem.
Realtors across the city opposed the measure, saying it would add another headwind to the struggling industry and lead to further increases in property taxes and rents.
“The vote counting is still ongoing, but regardless of the outcome, now is not the time to celebrate,” said Jeff Baker, CEO of Illinois Realtors, which raised $1 million to oppose the measure. “Everyone in Chicago deserves stable housing – it’s something our 17,000 real estate agents across the city advocate for and work for every day.”
Last fall, Johnson and allies on the City Council forced the measure into the city’s primary election in a contentious vote.
They proposed cutting the real estate transfer tax on all real estate purchases under $1 million from 0.75 percent of the purchase price to 0.6 percent.
Buyers of properties between $1 million and $1.5 million will pay 2 percent of the purchase price. For purchases over $1.5 million, the buyer will pay 3% of the purchase price.
Groups including landlord associations, the commercial real estate industry and real estate agents opposed the measure in court.They were initially successful before the state Supreme Court finally ruled Less than a week before the election The measure can move forward.
As of Wednesday afternoon, the measure failed with 46.34% of votes in favor and 53.66% against.
Both parties were careful to avoid declaring victory, noting that 21% of votes, mostly mail-in ballots, had yet to be counted.
Still, Chicago Tribune editorial board member Steve Daniels said the measure appears likely to fail given the expected makeup of residual returns.
“#BringChicagoHome was absolutely overwhelmed tonight,” Daniels wrote on the X. “The most shocking thing of the night. And it was worse than it seemed.”
#bringchicagohome Just overwhelmed tonight. The biggest shock of the night.Even worse than it seems
— Steve Daniels (@stevedaniels27) March 20, 2024
Illinois Policy, a conservative think tank that opposed the measure, proposed ethics complaint Targeting campaign supporters during the election cycle, it said the Chicago Teachers Union violated ethics rules when it worked with supporters to get high school students to the polls on Friday.
“Even in a low-turnout primary, Johnson and his allies were unable to mobilize a sufficient base — even by lobbying students and taking them to the polls — to overcome Chicagoans’ dissatisfaction and distrust of the mayor, Because the mayor has never revealed his plans “how he will use the new tax revenue to help the homeless,” said Hilary Gowins, the group’s senior vice president. Written on Tuesday night.
Supporters of the campaign, called Bring Chicago Home, did not respond to a request for comment.
“Real estate agents, corporate landlords and large developers fight us at every turn,” the group wrote in a statement shared with media.. “Our broad-based coalition of homeless and formerly homeless people, union members, faith leaders, social service providers, community organizations and grassroots volunteers is determined to continue the fight for housing justice.”
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