Wednesday, March 12, 2008

Chicago City Council debates shifting Transfer Tax burden to Sellers

Today the Chicago City Council takes up the debate on the dreaded Real Estate Transfer Tax today. The debate today is about shifting the burden of the additional $3.00 per $1,000 of the tax (the increase passed last month) from the buyer to the seller in a real estate transaction.

You'll recall from a previous post that the Chicago City Council passed an ordinance raising the City Transfer Tax from $7.50 per $1,000 to $10.50 per $1,000 of the sales price of property in Chicago. The tax increase takes effect on April 1 of this year. The increase in this tax will make up the projected $100-million shortfall in the CTA budget not covered by the sales tax increase.

In a related note, I learned that CARPAC - the Chicago Association of Realtors Political Action Committee - has withdrawn its support and financial assistance for any and all Chicago Aldermen & Alderwomen who voted to increase the Transfer Tax. Normally I am at odds with the Realtors' Political Action Committees, but on this issue, I say "Right On."

I hear through the grapevine that there were only six bold and brave Aldermen and Alderwomen who thought that the transfer tax on Real Estate was an awful idea and voted against the tax. The short list of those Aldermen:

Bob Fioretti (2nd)
Sandi Jackson (7th)
Sharon Dixon (24th)
Rey Colon (35th)
Brian Doherty (41st)
Bernard Stone (50th)