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Increase in Chicago’s Transfer Tax is Back on the Table
Community groups and the Chicago Coalition for the Homeless are renewing their call for an increase to the city’s real estate transfer tax (RETT) to help fund homelessness relief and affordable housing, Crain’s Chicago Business reported. Mayor Lori Lightfooot’s transition report, issued before she took office in May, called for such an increase.
Currently, the city imposes a RETT at a flat rate of $5.25 per $500 of property sale value, or 1.05%. Roughly 70% of revenues go to the city, while the rest goes to the Chicago Transit Authority.
Advocates want to see a higher rate of $9.75 per $500 of sale value on properties that sell for more than $1 million. The property buyer would be responsible for the cost.
The coalition estimated that if implemented, the tax increase would affect “only 5.2% of Chicago’s average annual real estate sales… including only 3.6% of residential purchases.”
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