Judge Rules Against Transfer Tax Referendum

The so-called “mansion tax,” an initiative backed by Chicago Mayor Brandon Johnson that would increase taxes on real estate transactions of $1 million or more, was struck down by a local court in a move seen as a victory for opponents of the measure.

The Building Owners and Managers Association of Chicago (BOMA) and a coalition of associations and companies representing contractors, developers, investors, and commercial office, multi-family and retail industries scored a win in their lawsuit against the proposal to increase real estate transfer taxes in Chicago.

The Cook County Court ruled in favor of the plaintiffs who argued that the Transfer Tax Referendum question originally placed on the March 19, 2024, Primary Election ballot was misleading and unconstitutional. As a result, the referendum will be invalidated, and the votes will not be tallied.

Johnson and supporters of the referendum argued the tax would help provide funds Chicago needs to combat the rising number of displaced persons experiencing homelessness throughout the city. In response to the court’s decision, the city of Chicago filed a motion to stay the judge’s order.

“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/Chicago Executive Director Farzin Parang