Chicago’s real estate lobby isn’t wasting much time trying to convince aldermen to back off Mayor Brandon Johnson’s proposal to quadruple the one-time transfer tax paid to the city when its priciest properties trade hands.
Instead, the industry’s campaign against the policy is pointed directly at voters.
A group called Realtors in Opposition to Real Estate Transfer Tax has started mailing out postcards to Chicago property owners, shedding light on the Johnson-backed proposal and warning that it “could dissuade buyers from purchasing your property in the future,” Crain’s reported. The postcards’ return address is the same as the Chicago Association of Realtors.
They state that the hiked transfer rate “will take tens of thousands of dollars away from families and future generations trying to build wealth.” They urge recipients to contact the mayor and City Council to voice their opposition.
A transfer tax is a one time fee that buyers must pay when purchasing a property. The current rate in Chicago is 0.75 percent, regardless of the sales price. The most recent iteration of Johnson’s proposal entails a three-tiered system: the rate would be reduced to 0.6 percent for all property sales less than $1 million. But it would rise to 2 percent for sales between $1 million and $1.5 million and jump to 3 percent for transactions greater than $1.5 million.
Alderman Carlos Ramirez-Rosa of the 35th Ward, and Johnson’s council floor leader, claimed Thursday that Johnson has a majority of the council in support of sending the proposal to voters in order to seek their blessing to hike the taxes in the upcoming March election.
Anthony Hebron, vice president of marketing and communications for Illinois Realtors, which includes the Chicago association, said the group is against the proposal “because it would derail our local economy and harm the real estate market,” he told the outlet
Supporters of the initiative contend that it mainly impacts affluent buyers and high-end deals. However, the Illinois Association of Realtors has disputed this notion, saying that renters would also be affected, as multifamily landlords would jack up rental rates to compensate for added tax costs.
The postcards have begun making their rounds in wealthy neighborhoods including Lakeview and Lincoln Park. Hebron confirmed that the Chicago Association of Realtors plans to take further action, but he didn’t specify how.
— Quinn Donoghue
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