Mayoral candidate Brandon Johnson said he would actively pursue a “mansion tax” if elected, generating a stream of revenue in the fight to curb homelessness in Chicago.
The proposed plan that he’s named Bring Chicago Home calls for a 2.65 percent transfer tax on homes selling for $1 million or higher, Crain’s reported. Unlike property taxes, the transfer tax would be a one time payment made at the time of the sale.
The current transfer rate is 0.75 percent, or $7,500 per $1 million. The $19,000 per million difference in Johnson’s plan would be funneled directly towards affordable housing and homelessness initiatives.
According to the outlet, if this policy existed 12 months prior to April 2022, it would have generated $158.5 million in additional aid for the city’s housing crisis.
Opponents of the policy say that it would place an unfair burden on homebuyers, as a $1 million purchase or higher is already a stretch for some homebuyers.
Read more
Politics
Chicago
Chicago will have a new mayor: Paul Vallas vs. Brandon Johnson in runoff
Residential
Los Angeles
With mansion tax looming, LA agents advise clients to sell luxury homes
Development
Chicago
Chicago incentive package spurs affordable housing downtown
The outlet also noted that high-end home sales at the $1 million threshold have dropped by 14.5 percent over the past year. In addition, rising interest rates may cause the number of high-end sales to drop further, the outlet noted.
Fellow mayoral candidate Paul Vallas didn’t respond to his run-off opponent’s proposal, but he said, if elected, he will “convene a committee of housing experts” before proceeding with a plan.
-Quinn Donoghue