Voters will decide whether to raise taxes on real estate sales over $1 million. Landowners and business groups argue the referendum violates the state constitution.
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A group representing Chicago landlords sued the city’s elections department on Friday to block a referendum that would increase taxes paid on sales over $1 million starting on the March ballot.
Mayor Brandon Johnson promoted the proposal. through the City Council in November.with advocates hoping to raise As much as $100 million is spent annually on homeless services.
The lawsuit is led by the Chicago Association of Building Owners and Managers, which names the Chicago Board of Elections and takes issue with the language of the referendum.
As currently written, the referendum asks voters three questions and also notes that if passed, the referendum would reduce transfer taxes on assets under $1 million.
“The Illinois Constitution guarantees “free and equal elections,” and the coalition prohibits residents from voting on three separate policy items, making it unconstitutional to include multiple questions on the referendum. “We claim that there is,” the coalition said in a news release. release.
BOMA argued in its lawsuit that voters have the right to decide each question individually. Crain’s Chicago operations.
“Many voters will likely support the first question (tax cuts) but oppose the second and third questions (tax increases),” BOMA argues. “But they cannot express support for the first proposal without also expressing support for the second and third proposals they oppose.”
Clear public opinion showing how voters in America’s third most populous city feel about a referendum that would quadruple the tax rate paid on properties over $1.5 million and apply to both residential and commercial properties. There is no research.
Currently, all buyers in Chicago pay the same taxes on real estate purchases, regardless of the sales price. If passed, the referendum would create a new tax rate for sales of more than $1 million but less than $1.5 million, with a top tier for sales over $1.5 million.
This will further pressure commercial real estate values, which have already fallen by 80%, BOMA said.
“Homelessness is an important issue for our city and should be addressed with a serious plan that involves all stakeholders. These important public policy issues need equity, detail, and transparency. BOMA/Chicago Executive Director Farzin Paran said. “Rather, this referendum is playing politics.”
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