The "Bring Chicago Home "mansion tax" vote on March 19th looks like one to watch. It will use changes to transfer taxes to raise funds for addressing homelessness.
Essentially the transfer tax for property sales of $1M and above will go to 2% and $1.5M and above will go to 3%. But here's the kicker 93% of all buyers will see a tax cut because sales under $1M will have a tax cut from 0.75% to 0.6%
Examples:
Buy a $999,999 property and save $1500 in transfer taxes
Buy a $1,000,000 property and pay an additional $12,500
Buy a $1,500,000 property and pay an additional $33,750
Let's just say there will be strong incentives to keep prices below $1M and below $1.5M although when buying at that price people will regularly bid up by much more to get the house they want.
Remember these are one time taxes for a buyer. Their annual property taxes of over 1% per year are unaffected.
enmodo ⚛️ 🧬 🇺🇦 🍉