Two state legislators have introduced to the House and Senate a bill designed to boost revenue for the City of Chicago while combating homelessness through a restructuring of the real estate transfer tax.
The bill would set aside only 25 percent of new funds from the proposed structure of the real estate transfer tax, rather than 60 percent or more, as some state lawmakers originally wanted, the Sun-Times reported.
In an effort to alleviate the Chicago’s financial woes, Mayor Lori Lightfoot lobbied during the fall veto session for a change the structure of the city’s real estate transfer tax, but other Democtatic lawmakers argued that most of the money should go to affordable housing and services for the homeless, rather than into the city’s overall budget.
The bill’s sponsors, state Rep. Delia C. Ramirez and state Sen. Ram Villivalam, claim it gives both sides what they want.
Ramirez told the Sun-Times that the bill’s rate structure will bring in more revenue than Lightfoot’s proposal, which was expected to generate $50 million in 2020.
Villivalam called it the “ultimate win-win situation.”
Under the proposed rate structure, the tax for property transfers $1 million and under would be less than the city’s current tax of $5.25-per-$500, while those over $1 million would be taxed at at least $7.50-per-$500.
Both lawmakers have already met with members of Lightfoot’s team.
[Sun-Times] — Brianna Kelly