Chicago’s ‘mansion tax’ bill funding homeless concerns appears to flop as finalized results remain in limbo
A bill anticipated to generate at least $100 million annually from real estate sales to provide permanent affordable housing for Chicago’s homeless appears to be heading for defeat as results continue to be counted following Tuesday's Illinois primary.
The ‘Bring Chicago Home’ bill garnered increasing opposition leading up to election day and the voting results may place the controversial ordinance in legal limbo.
As of Wednesday afternoon, the final results had yet to be finalized, with 166,285 Illinois residents (53.7%) voting no, and 143,624 locals (46.3%) casting in favor of the bill.
According to the Bring Chicago Home Coalition, their proposal was intended to ‘restructure Real Estate Transfer Tax (RETT), a one-time tax paid when a property is sold.’ The bill would have decreased RETT for properties sold under $1 million, and those over $1 million would have seen a tax rate increase.
The revenue raised from the initiative would then have gone to use on varying shelter costs, from homelessness prevention to affordable housing. The taxpayer funds would be available for all without a home, including undocumented migrants, in an effort to address Chicago’s growing homelessness crisis.
If the bill goes through, some property purchases could increase as much as 300%.
Currently, Chicago real estate transfers are taxed at $3.75 for every $500 property value. The referendum proposed to shift that, lowering the tax rate by 20% to $3 for every $500 if the property cost is under $1 million.
For buildings over a $1 million valuation, the tax rate would’ve increased more than 150% at $10 for every $500 value. Any property over $1.5 million was to be taxed at $15 for every $500 of the purchase price, increasing by 300%.
Advocates from the Coalition say that only 4.2% of real estate sold would be affected by the bill, with 93% of property purchases predicted to see a decrease in the tax rate.
However, critics discourage the initiative with concerns that it could result in negative outcomes for commercial real estate transfers, ultimately disincentivizing businesses from relocating to the windy city.
2 FOUND DEAD IN DOUBLE HOMICIDE AT DENVER HOTEL BEING USED AS HOMELESS SHELTER
If passed, the initiative’s board members would turn in budget recommendations annually on May 31st. The referendum has proposed a start date of January 1, 2025.
According to a report from the Chicago Coalition for the Homeless, there’s a population of 68,440 homeless people in the windy city alone.
As Chicago continues to struggle while resources deplete amid the migrant crisis, Mayor Brandon Johnson enacted a 60-day eviction policy across the city’s migrant shelters earlier this week, which could presumably increase local homelessness concerns.
CLICK HERE TO GET THE FOX NEWS APP
NBC Chicago reports that the Chicago Board of Elections awaits nearly 110,000 vote-by-mail ballots that could alter whether the proposal goes dead or is enacted.