Home Economy News Chicago voters likely to reject tax proposal to fight homelessness

Chicago voters likely to reject tax proposal to fight homelessness


Chicago voters likely to reject tax proposal to fight homelessness By Reuters

Breaking News



Published Mar 19, 2024 07:05AM ET
Updated Mar 19, 2024 11:20PM ET

© Reuters. The skyline is seen in Chicago, Illinois, U.S., October 19, 2017. REUTERS/John Gress/File Photo

By Eric Cox

CHICAGO (Reuters) -Chicago voters on Tuesday appeared to reject a higher real estate transfer tax on properties worth over $1 million, a proposal that proponents said could raise $100 million a year to pay for affordable housing and fight homelessness.

The ballot measure was losing by 8 percentage points with 81% of the vote counted.

Backers of the measure called the results “disappointing” but had yet to concede late Tuesday, saying as many as 100,000 mail-in ballots had yet to be counted. The initiative was trailing by some 23,000 votes with nearly 300,000 ballots in.

“Whatever the final count, one thing is abundantly clear tonight: how determined our opponents are to continue profiting from displacement and inequality,” Bring Home Chicago, the main coalition supporting the measure, said in a statement that also criticized how landlords, realtors and developers campaigned against it.

If approved, the initiative would lower property transfer taxes for the vast majority of Chicago residents, to $3 for every $500 of a transfer price under $1 million, down from the current flat rate of $3.75.

It would also create new brackets at the priciest end of the city’s property market, including many office buildings filling the Chicago skyline, with a tax rate of $10 for every $500 of the transfer price between $1 million and $1.5 million, and $15 beyond that.

Proponents of the measure in the City Council, led by Democrats, estimated the changes would bring in an additional $100 million each year, which would be set aside for services to address homelessness.

Such a tax structure would bring Chicago in line with San Francisco, Philadelphia and other major U.S. cities, according to Carlos Ramirez-Rosa, the alderman who represents Chicago’s 35th ward.

Opponents included landlords and managers of upscale properties.

The Building Owners and Managers Association of Chicago said the initiative would hinder efforts to revitalize office towers downtown, which have struggled to keep tenants in the wake of the COVID-19 pandemic.

More than 68,000 Chicagoans lacked permanent housing at some point in 2021, the latest year for which data was available, according to a report by the Chicago Coalition for the Homeless. Of those, about 44,000 were temporarily staying in other people’s homes, leaving 24,000 on the street or in shelters.

With the city also receiving an influx of immigrants, officials began evicting some foreigners from homeless shelters on Sunday.

Chicago voters likely to reject tax proposal to fight homelessness

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News