Chicago Rejects Mansion Tax to Fund Homeless Services
In a recent referendum, Chicago voters turned down a proposal to increase the city's real estate transfer tax on properties sold for over $1 million, a measure that was projected to generate $100 million annually for services aimed at helping the homeless, including mental health care. The initiative, referred to as "Bring Chicago Home," was a key component of Mayor Brandon Johnson's progressive platform during his first term in office.
The opposition argued that the tax increase would unfairly target commercial properties and could harm the recovering downtown business sector in the wake of the COVID-19 pandemic. Real estate groups and critics also suggested that the tax could damage the city’s fragile real estate market and exacerbate homelessness rather than alleviate it.
The proposal had faced legal challenges before the vote, with a lawsuit from real estate trade organizations claiming that the wording of the ballot question violated state statute regarding referendums. Although an appeals court initially overturned the lawsuit, the Illinois Supreme Court ultimately declined to hear an appeal. The rejection of the referendum raises questions about the strength of progressive policies in Chicago, despite similar measures being approved in other major cities.
