Those rates would be adjusted for inflation every five years and, if passed by voters, would take effect on Jan. Because the tax would be implemented using a so-called marginal rate, only the additional dollars above the lower bracket would be subject to the higher tax rate. The charge is levied on buyers during all real estate sales. Johnson’s plan calls for slightly reducing the tax charged on the first $1 million in value - to 0.6% - while increasing the rate on properties valued between $1 million and $1.5 million to 2%, and boosting the rate even more on properties valued above $1.5 million, to 3%. The city’s current real estate transfer tax charges a 0.75% flat rate on all property sales in Chicago. To make the prospect of a tax increase more palatable to voters, the mayor’s team this summer hammered out a new version that offers a tiered tax rate system designed to hit the most expensive property sales hardest.īring Chicago Home advocates have also argued that even with the volatility of past transfer tax collections, the city needs a dedicated revenue stream to fund programs like emergency rental assistance, buying and rehabbing shelter space and direct housing help. Johnson and his progressive allies have said his April runoff victory and the burgeoning migrant crisis spell new momentum for the measure, even as the real estate transfer tax has offered unreliable revenue hauls in recent years.
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