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The proposed plan would raise the city's real estate transfer
tax on properties valued at $1 million and above if enacted by
the mayor and approved by the City Council.
The tax has a progressive three-tier structure, with different
effective tax rates for property values under $1 million,
between $1 million and $1.5 million, and more than $1.5 million,
according to Wirepoints.
Ted Dabrowski, of Wirepoints, told The Center Square that this
idea could have a negative impact on the city.
"[Johnson] wants to raise the taxes on Chicagoans, and it is a
very dangerous thing to do given where Chicago is right now,"
Dabrowski said. "There are empty buildings, we have the crime,
we have got the people who are not coming into the city anymore
from the suburbs. So we have a real serious issue, and yet they
want to hike taxes on Chicagoans once again."
Johnson previously said he would not to raise property taxes on
Chicagoans while he is in office. Dabrowski said the promises
Johnson has made are becoming harder to honor.
"We have to remember our commercial buildings, and I think
that's where the danger really is. Our commercial buildings, in
many cases, are half empty, and so we are missing the tax base,
and we are running the risk of pushing these properties into
even worse positions," Dabrowski said. "I think Johnson is
finding out the promises he would like to make will be really
difficult to keep."
According to U.S. Census Bureau data, 91 of Illinois' 102
counties lost population last year. The most recent IRS
migration data indicated more than 105,000 taxpayers left
Illinois in the year ending July 2021, taking with them $10
billion in income.
From a business standpoint, the state has seen Guggenheim,
Boeing, Tyson, Caterpillar, and Citadel, among others, leave the
city in the past few years.
The proposed "mansion tax" will still need to be approved by the
Chicago city council.
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