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Chicago Voters Reject Mayor Johnson’s “Bring Chicago Home” Tax Proposal: Higher-Value Homes Tax Increase Fails
53.2% Vote Against Mayor Johnson’s Tax Referendum: Funding for Homeless Services Remains a Challenge
Chicago voters recently rejected a referendum proposed by Democratic Mayor Brandon Johnson aimed at increasing taxes on higher-value homes to fund services addressing homelessness, reports the Chicago Tribune. The measure, known as the “Bring Chicago Home” tax, would have raised transfer levies on real estate valued over $1 million, potentially generating approximately $100 million annually. However, with 53.2% voting against it and 46.8% in favor, the proposal was ultimately defeated.
Under the proposed rule, properties under $1 million would have seen a reduction in the current flat tax rate of 0.75% to 0.6%. For properties exceeding $1 million, a progressive tax system would have been implemented, with values from $1 million to $1.5 million taxed at 2%, and anything beyond that at 3%. The revenue generated was intended to fund homeless services, including mental health care, for the city’s estimated 68,000 homeless individuals.
READ ALSO: Childcare Tax Credit Bill Moves Forward – Step Towards Financial Relief!
Homeless Services in Blue City Funding Referendum Fails – Voters Weigh in on Tax Hike!(PHOTO: getty images)
Opponents Raise Concerns on Commercial Real Estate: Economic Challenges Influence Vote Against Mayor Johnson’s Tax Hike
While proponents argued for the necessity of addressing homelessness, opponents expressed concerns about the potential impact on owners of commercial properties, particularly those still recovering from pandemic-related slowdowns. With commercial real estate nationwide facing challenges such as reduced demand due to remote work trends and high interest rates on debts, Chicago’s rejection of the tax hike highlights broader economic and social complexities facing the city.
