Lightfoot’s real estate transfer tax is dead

City’s property tax levy will increase by $65M

TRD CHICAGO /
Nov.November 13, 2019 12:00 PM
From left: Ald. Carlos Ramirez-Rosa, Ald. Raymond Lopez and Mayor Lori Lightfoot (Credit: Wikipedia, Facebook, Getty Images)

From left: Ald. Carlos Ramirez-Rosa, Ald. Raymond Lopez and Mayor Lori Lightfoot (Credit: Wikipedia, Facebook, Getty Images)

The predictions were right, without real estate transfer tax, property taxes have to increase. And according to the latest projections, the property tax levy will have to go up by about $65 million.

Mayor Lori Lightfoot’s original plan for a graduated real estate transfer tax is no more, according to aldermen. They confirmed the news yesterday along with an increased property tax levy of $65 million, the Chicago Sun-Times reported.

The raise in property taxes comes as no surprise. Despite Lightfoot’s optimism for her original tax plan to generate $50 million in 2020, aldermen have been vocal about the unlikelihood of her plan being pushed into action.

Of the $65 million raise, $15 million is from capturing the growth of new construction and $32 million is associated with “debt service” approved by City Council last spring, according to the Sun-Times.

Lightfoot expected her plan would pass in time to begin collection on Jan. 1. Instead, she was faced with 13 Democratic lawmakers threatening to withhold votes until “at least 60%” of the annual funding is put toward combating Chicago’s homelessness problem, reported the Sun-Times.

During a Tuesday meeting with the municipal council, aldermen were given multiple other options to try to put a plug in the $838 million budget gap but it resulted in even more skepticism from the aldermen.

Lightfoot’s chief of staff shot down the idea to tax hotel rooms at 75 cents-to-$1 per room, which was hatched by Carlos Ramirez Rosa (35th) and Ald. Leslie Hairston (5th). “When it comes to hotel taxes, we’re already one of the highest hotel taxes in the entire country,” chief of staff Maurice Classen said. “To increase that even higher would begin to hurt the industry and actually decrease revenue.”

[Chicago Sun-Times] — Jacqueline Flynn


Related Articles

arrow_forward_ios
Cook County Board President Toni Preckwinkle said homeowners will be given a two-month reprieve on late-payment interest penalties. (Preckwinkle by KAMIL KRZACZYNSKI/AFP via Getty Images; iStock)

Cook County throws lifeline to homeowners struggling with mortgages

Cook County throws lifeline to homeowners struggling with mortgages
Gov. J.B.  Pritzker and State Rep. Allen Skillicorn (Credit: Pritzker via Tyler LaRiviere - Pool/Getty Images; Rep. Allen Skillicorn; iStock)

Is property tax relief on the way?

Is property tax relief on the way?
US Steel’s sprawling South Works site is about the size of Downtown Chicago. At left, Common, who wants to partner with developers on a mixed-use entertainment district there, and Dan McCaffery, whose vision for a 13,000-home community fizzled out. (Credit: Common by Paras Griffin/Getty Images; McCaffery via McCaffery Interests; aerial by Cushman & Wakefield)

South Works, the 415-acre “magnificent property,” is Chicago’s biggest development opportunity

South Works, the 415-acre “magnificent property,” is Chicago’s biggest development opportunity
Cook County Board of Review Commissioner Michael Cabonargi and Cook County Assessor Fritz Kaegi (Credit: Facebook, Cook County)

Cook County Board of Review slashes Kaegi’s commercial property assessments in 7 northern townships

Cook County Board of Review slashes Kaegi’s commercial property assessments in 7 northern townships
Wolf Point East at 313 W. Wolf Point Plaza and Nema Chicago at 1210 South Indiana Avenue (Credit: Hines, Nema Chicago)

Over 10K new apartments could flood Downtown Chicago by 2022. But there’s a catch

Over 10K new apartments could flood Downtown Chicago by 2022. But there’s a catch
Trump International Hotel & Tower and Donald Trump (Credit: Trump and Getty Images)

Trump Tower tax appeal is under investigation

Trump Tower tax appeal is under investigation
Cook County Assessor Fritz Kaegi (Credit: Twitter and iStock)

Cook County assesses priciest properties in suburbs at below recent sale prices: report

Cook County assesses priciest properties in suburbs at below recent sale prices: report
Property tax increases and other factors are encouraging hometown developers to seek projects in markets outside of Chicago (Credit: iStock)

Development drain? More local firms seek projects outside Chicago

Development drain? More local firms seek projects outside Chicago
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...