A Cook County judge has struck a real estate transfer tax question from the March primary ballot, a measure that would fundamentally change the way real estate transfers are taxed in the city.
According to the language of the referendum, voters would have decided whether the city should move from the current flat tax model on real estate transfers to a graduated tax, which would impact all transactions of $1 million or more.
The ballot question was heavily criticized by opponents, who said the question was intended to trick voters into voting "yes" while saying the measure would have a chilling effect on real estate sales in the city.
Supporters said that the ordinance would result in a reduction in the transfer tax for approximately 94% of properties in the city.
A statement from the Chicago Coalition for Justice heavily criticized the decision from the judge:
“Today’s ruling, while disappointing, is not surprising. The far right has demonstrated over and over again their willingness to use the courts to disenfranchise voters and strip us of popular policies that help women, communities of color, and poor- and working-class people," the statement said.
The statement added that they were "outraged" that a "small minority of wealthy real estate interests would rather spend thousands of dollars on legal fees to preserve a brutally unjust status quo than pay their fair share in taxes."
Illinois Election 2024
Mayor Brandon Johnson's office issued a statement on the matter Friday evening.
"Bring Chicago Home remains on the ballot. We are disappointed in the court’s ruling, but will be exploring every legal option available. We firmly believe the referendum is legally sound and the final arbiter should be the voters of the City of Chicago," Johnson's office said.
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The Building Owners and Managers Association of Chicago praised the ruling, calling the measure a "backdoor property tax" for Chicago residents.
“We are gratified in the judge’s ruling, which underscores the necessity of presenting policy questions to the public with fairness, detail, and transparency," BOMA executive director Farzin Parang said.
The Chicago Southland Black Chamber of Commerce also supported the decision, saying that the measure would damage the local real estate market.
"This victory was something that we expected and anticipated as the ballot question had several issues, namely the log-rolling issue. We also believed that the proposed ordinance would hurt both the business climate and rental market for obvious reasons," Board Chairman Dr. Cornel Darden Jr. said.
The Chicago Board of Elections confirmed that the Circuit Court has yet to enter a written order based on the results of the ruling, therefore the decision has yet to be appealed by the Chicago Board of Election Commissioners.
Early voting and vote-by-mail will continue until the Board is directed otherwise, according to Max Bever of the Chicago Board of Elections.
Advocates of the measure expect the decision to be appealed. More information on the proposed real estate transfer tax can be found here.
