Supporters and opponents of Mayor Brandon Johnson's proposed increase in transfer taxes on luxury transactions are pulling out all the stops as the March vote approaches.
The Illinois Association of Realtors has launched a major campaign against the Chicago Bring Home Ordinance and plans to spend about $1 million in the coming weeks, Crain's reported.
The ordinance, which calls for raising transfer taxes (a one-time fee when you buy real estate) on sales over $1 million, has drawn support from supporters who believe it will help combat homelessness in Chicago and An intense referendum campaign is underway with the real estate community concerned about the bill. Harmful effects.
“We want to convince Chicago voters that creating a new real estate tax in a city that is already overburdened with real estate taxes will help the city,'' said Jeff Baker, CEO of Springfield-based Illinois Realtors. “I'm going to tell them that it will cause damage to them,” he said. outlet.
Supporters of “Bring Chicago Home” raised about $700,000.
The campaign against “Bring Chicago Home” will include digital advertising, mailers, media efforts and field surveys over four to six weeks. The ordinance would have a disproportionate impact on commercial real estate, which is already suffering from record office vacancy rates, high interest rates and weak sales.
If passed, it would create savings for the vast majority of homebuyers, dropping from 0.75% to 0.6% for sales under $1 million. For sales between $1 million and $1.5 million, the transfer tax rate jumps from 0.75% to 2%, but the first $1 million is taxed at 0.6%. For transactions over $1.5 million, the tax rate increases to 3%.
Baker said the ordinance will not only affect wealthy homebuyers, but also small businesses due to rising commercial real estate costs. The planned $1 million donation by Illinois Realtors will be in addition to the $242,000 already spent in opposition to the plan last year, the outlet said.
The total amount raised by opponents of Mr Johnson's plan is unclear due to “dark money” fundraising led by campaign veteran Greg Goldner, founder of Resolute Public Affairs. Goldner's strategy allows posters to protect their identities through legal loopholes.
Supporters of the plan recently suffered a blow after failing to win support from the Chicago Federation of Labor. The federation, which represents more than 300 trade unions, fell just short of the two-thirds weighted vote needed to support the referendum.
—Quinn Donahue
