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Big tax hike on pricey home sales hits roadblock, but not dead yet

Proponents want to dramatically increase the tax on sales of homes over $1M to fund efforts to help the homeless

Alderman Roberto Maldonado (Credit: iStock)
Alderman Roberto Maldonado (Credit: iStock)

A proposed major tax hike on the sale of homes for more than $1 million hit a roadblock this week when mayoral allies on the Chicago City Council used a parliamentary procedure to delay a vote on it.

The move to transfer consideration of the proposal from one council committee to another doesn’t kill the tax hike plan, but sponsor Alderman Roberto Maldonado (26th) derided his colleagues for engaging in “shenanigans” nonetheless, according to Block Club Chicago.

“None of these shenanigans came through when we were rushing through the Lincoln Yards” project from Sterling Bay, Maldonado said.

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The proposal would maintain the current property transfer tax of $3.75 for every $500 in sale price up to $1 million, but raise it to $9.75 for every $500 of sale price of homes sold for any amount over $1 million. Proceeds would go toward the city’s efforts to help the homeless.

The proposal was one of several calls to raise the property transfer tax put forth by aldermen in the fall. Some council members also proposed an increase on properties sold for over $750,000 to replace lead water pipes, while another called for raising the transaction tax by 27 percent for police and fire pensions.

But outgoing Mayor Rahm Emanuel came out against all of the plans, saying targeting homeowners was not the way to generate the revenue for the aldermen’s causes. [Block Club] — John O’Brien

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