Illinois Supreme Court Boosts Mansion Tax Referendum

The Illinois Supreme Court has dismissed an attempt to invalidate the Bring Chicago Home real estate transfer tax referendum, allowing the question to proceed on ballots and votes to be counted. This decision concludes weeks of legal disputes between supporters and opponents of the referendum.

Court's Decision

The court declined the appeal filed by the Building Owners and Managers Association of Chicago (BOMA Chicago) without specifying the reason for the denial. BOMA Chicago expressed disappointment with the ruling, emphasizing concerns about the referendum's potential negative impact on various stakeholders.

Support for the Decision

In contrast, the Bring Chicago Home group, led by Doug Schenkelberg, praised the court's decision, highlighting the opportunity it presents for addressing homelessness and securing funding for affordable housing and support services.

Referendum Details

The referendum aims to generate approximately $100 million annually for combating homelessness by increasing the transfer tax rate on real estate transactions exceeding $1 million. Mayor Brandon Johnson, along with progressive organizations and homelessness service groups, supports this policy, which is set to appear on the March 19 primary ballot.

Legal Background

Initially invalidated by Cook County Judge Kathleen Burke due to concerns raised by BOMA Chicago regarding the question's complexity and vague spending plans, the referendum regained validity following a state appellate court's decision. This development allows the Chicago Board of Elections to count votes in the upcoming primary.

Potential Challenges

Legal experts anticipate possible challenges post-election, particularly once the City Council ratifies the ordinance. Concerns may include the referendum's compliance with municipal code and constitution, as well as the clarity of the city's spending intentions.

Despite legal hurdles, the Bring Chicago Home referendum progresses toward potential implementation, pending voter approval and subsequent legislative action.