What ‘Bring Chicago Home' referendum is, and how it would work

NBC 5 Chicago ^ | 3/18/24 | James Neveau

[DallasBiff]

Voters in the city of Chicago are being presented with a referendum on their ballots in the 2024 primary election, asking if they approve of a so-called “mansion tax” that would fundamentally change the way real estate transfers are taxed in the city.

The language of the "Bring Chicago Home" referendum asks voters to decide whether the city should move from the current flat tax model on real estate transfers to a graduated tax, which would impact real estate transactions on all value levels.

Supporters say that the ordinance would result in a reduction in the transfer tax for approximately 94% of properties in the city, but critics warn that it could have a devastating impact on the commercial real estate market.

[DallasBiff]

So let me see if I have this correct, there is a tax which one sells their house in Chicago, they are charged a tax of 3% for every $500 of value, so if a house is sold in Chicago for $500,000 the transfer tax is $15,000.

Yes this proposal, reduces the tax by a %.25, but still a tax for selling your house, and it raises the tax on high end end housing and commercial properties?

Call me naive, but is this a common practice around the USA or just democrat cities, and I may not have the math correct.

Yes the democrats, can say they are cutting taxes, but they are screwing commercial property owners.

Chicago is effed up.

[ProtectOurFreedom]

Congress snuck a 3.9% tax on all real estate transactions into Obamacare. It’s still in effect.

[Democrat = party of treason]

LOL Shitcago!

[FrankRizzo890]

I think this was plan was detailed in the first chapter of “How to have all the wealthy people leave your state”.

I have a theory that the plan is to make things as bad as they can be, run off all the property owners, and then the government thugs will buy all this property on the cheap, and roll back all their crappy laws so that people can then come back and live/work in their properties.

[AbolishCSEU]

And as usual with a catchy, misleading title to this crap law. The low info voters will go for it in droves.

Every time they think they are punishing the Kulaks, it backfires on the gimmedat class.

[Gen.Blather]

Any tax has unintended consequences. Liberals look at taxation as an inert, nonresponsive system. If we raise the tax, we will get more money. That almost never works. Taxation is not some solid, linear system. It’s alive and responsive to change.

What I see happening here is businesses moving away or not moving there in the first place. As to other ways around this particular tax, it’s not obvious to me, but I’m sure there are tax attorneys already figuring how to game the system.

The immediate effect may be that houses and commercial property will hit the market. People have probably been staying in the area out of inertia. They’ll see the future and flee before it’s too late.

[Robert DeLong]

I think most commercial real estate is dying anyway. If they try to stick it to commercial real estate transfers, they may find themselves with rotting decaying office buildings as they ignore the opportunity of purchase.

[E. Pluribus Unum]

This bill combines the first two planks of the Communist Manifesto:

1. Abolition of Property in Land and Application of all Rents of Land to Public Purpose.

2. A Heavy Progressive or Graduated Income Tax.

https://www.conservativeusa.net/10planksofcommunism.htm

[DallasBiff]

I think most commercial real estate is dying anyway. If they try to stick it to commercial real estate transfers, they may find themselves with rotting decaying office buildings as they ignore the opportunity of purchase

Chicago meet Caracas, Venuzeala.

[Wuli]

The ignorant leading the blind following the stupid.

[john drake]

Problem is, as has been for a long time, you won’t attract families back to Chicago because the public schools are dreadful. And real estate taxes are astronomical and will get worse. Corporate leadership and small businesses continue to leave, along with retirees and the wealthy. Nobody in their right mind, if they’ve left Chicago, would want to come back. Detroit on a grander scale, is in the making. A sad and tragic tale given Chicago was once a truly great city. Not anymore.

[Lockbox]

Not enough commercial property owners to change the election, but there are enough to pay for special laws to be passed :)

[evilC]

I think it is $3.75 for each $500 of sale price (so about 0.75%). Still adds up though. Around $3,750 in the case of a $500,000 sale.

[Robert DeLong]

They all need to face firing squads.

[Bernard]

This type of tax is used in places that have run out of other things to tax. It's common in the Chicago metro area. With the emphasis on high-end property, think of it as an exit tax on a rich person's personal residence.

With the escalator rate kicking in at 1 Million, people feel safe because "it's a tax on rich people houses." Good thing inflation will not increase the sales price of their house in the near future.