Chicago residents will participate in a March 19, 2024, referendum to decide on potential changes to real estate transfer taxes. The proposal, recently passed by the City Council with a majority vote, introduces a tiered tax system. This change would raise fees on transactions over $1 million as reported by Chicago Agent Magazine.

If the measure is favored, the transfer tax for properties sold between $1 million and $1.5 million would surge from 0.75% to 2%. Transactions exceeding $1.5 million would face an increased rate of 3%. On the other hand, properties fetching a price under $1 million would acquire a tax reduction of 0.6%. Mayor Brandon Johnson believes the tax increase could provide an annual $100 million for tackling homelessness. However, pending voter endorsement, the City Council will have to decide how these funds will be appropriately distributed.

These potential changes can be traced back to Chicago's "Bring Chicago Home" initiative. By ramping up taxes on high-end properties, the passed legislation aims to boost the fight against homelessness. As cited in Hoodline, this proposal is expected to generate an estimated $100 million annually.

In addition to raising transfer taxes on high-cost properties, the "Bring Chicago Home" initiative proposes lowering the same for property sales below $1 million, offering relief to low-end transactions. The plan aims to boost housing funds by adopting a tiered rate system, with the ultimate objective of addressing housing affordability and homelessness comprehensively.

As the referendum approaches, residents are curious to learn how the proposed $100 million in yearly revenue would be effectively utilized and what strategies would be implemented to tackle homelessness in Chicago. Both proponents and critics of the "Bring Chicago Home" initiative, along with the suggested tax amendments, await the people's verdict in March 2024.