Chicago voters reject ‘property tax’ intended to fund homeless services

CHICAGO (AP) – Chicago voters rejected a one-time property tax on properties price greater than $1 million to cover homeless services.

That’s a loss for Chicago’s first mayor, Brandon Johnson, who championed the so-called “estate tax.”

The proposal would steadily raise town’s real estate transfer tax on properties valued at greater than $1 million. Supporters estimated it will generate $100 million a 12 months for homeless services, including mental health care. There are roughly 68,000 homeless people in Chicago on any given night.

The measure also included a discount within the transfer tax on properties below $1 million, which accounts for the overwhelming majority of home sales within the country’s third-largest city.

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Opponents, including real estate groups, argued the tax unfairly targets business properties and businesses as town center continues to get well from the Covid-19 pandemic. They initially won a lawsuit over the measure on constitutional grounds, however it was overturned by an appeals court. The Illinois Supreme Court denied their request to appeal.

Voters in cities including Los Angeles and Santa Fe, New Mexico, approved similar measures.