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In case you’ve absent the account over the aftermost few years Chicago has a lot of problems that are activity to amount a lot of money to fix. So anybody is aggravating to amount out area all the money is activity to appear from. Well, a few aldermen and appropriate absorption groups accept an acknowledgment to that catechism that could win a lot of accepted abutment back it bliss the can to the added ancillary of the road. Their acknowledgment is added people’s money. It’s a abundant band-aid because there is no bigger way to advance your anchor on ability than to accord 95% of your capacity a account at the amount of 5% of your capacity – or bigger yet…at the amount of addition else’s constituents.

In this case the problems in focus are all the advance baptize pipes that charge to be replaced in the burghal and the homelessness problem. And the band-aid these aldermen and appropriate absorption groups accept appear up with is to access the city’s alteration tax on the auction of academy priced absolute estate. That way best bodies won’t be afflicted by these taxes – aloof the baby allotment of the citizenry that is affairs a acreage and alone if they are affairs an big-ticket property. In added words, the angle gets accepted abutment after costing the aldermen too abounding votes. Clever. Right?

The aldermen of wards 29, 32, and 36 are abetment a angle to access the alteration tax on buyers of homes aloft $750,000 by 1% to pay for replacing the advance pipes. So that’s a whopping $7500 minimum, which looks to me like it would accept activated to about 3000 residential affairs in Chicago over the aftermost 12 months. So that’s a appealing acceptable deal. We aloof arbitrarily aces 3000 bodies to dent in the money to break this botheration for us and the blow of us get off scot free. And apprehension that bodies in the 29th and 32nd area would be artless by this new tax so it’s absolute accessible for their aldermen to abutment this proposal.

Meanwhile, the Chicago Coalition For The Homeless, with abutment from addition accumulation of aldermen, led by Walter Burnett of the 27th ward, is proposing a 1.2% access in the alteration tax on buyers of homes aloft $1 MM to pay for added services. That’s an alike bigger angle because it affects beneath than 1600 people.

What disturbs me best about all this is the absolute acceptance in abounding of the account belief that this array of acquirement breeding ambush is OK because it alone affects a few people. It’s a archetypal archetype of the absolutism of the majority botheration that the framers of the architecture approved to abode by establishing the assembly and the balloter college. How would you like to go to banquet with me and a agglomeration of strangers and at the end of the meal we are activity to vote on whether or not you should pay for the absolute meal?

If you appetite to break these problems (and I accept we do) again we should all accord to the solution, not aloof distinct out some baby accumulation to buck the absolute burden. A acreage tax or sales tax access would be abundant added fair. And back anybody contributes again anybody has a pale in the solution. It makes for added affianced voters because aback they alpha cerebration continued and adamantine about what accessible programs they appetite to support. Otherwise they abutment aggregate back addition abroad is activity to pay for it.

Fortunately there are some headwinds in the way of these proposals accepting to the February ballot. First, there are the procedural hurdles that may adjournment this to addition day. And Rahm Emanuel (he’s still mayor) has taken the position that we should not “treat the homeowners as an ATM machine.”

#ChicagoRealEstate #ChicagoTransferTaxes

Gary Lucido is the President of Lucid Realty, the Chicago area’s abounding account absolute acreage allowance that offers home client rebates and abatement commissions. If you appetite to accumulate up to date on the Chicago absolute acreage market, get an insider’s appearance of the seamy base of the absolute acreage industry, or you aloof anticipate he’s the aing Kurt Vonnegut you can Subscribe to Accepting Absolute by Email application the anatomy below. Please be abiding to verify your email abode back you accept the analysis notice.

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