One Hand Bites the Other

In an effort to supplement Chicago Transit Authority (CTA) funding, Mayor Daley plans to fast track a proposal to increase city transfer taxes for real estate purchases.  A long term remedy for the CTA is certainly necessary after using band aids of emergency funding for about the past year.  However, this proposal begs the question, is it fair to punish new home buyers and investors for CTA budgeting shortcomings?

 The city transfer tax for each transaction will be raised $3 for every $1,000 of purchase price, from $7.50 per $1,000 to $10.50 per $1,000.  Generally, buyers are responsible for city transfer taxes while sellers pay the county ($.50 per $1,000) and state ($1 per $1,000) transfer taxes.  Therefore, buyers will be absorbing the entirety of the tax increase.  Grand scheme we are talking about an extra $300 dollars in tax for every $100,000 in purchase price.

 Additionally, “Aldermen briefed Thursday by Chicago Transit Authority President Ron Huberman and a top mayoral aide said an ordinance imposing the increase will be fast-tracked for City Council approval, with a vote expected at the Feb. 6 meeting.” – Gary Washburn, Chicago Tribune

Here you’ll find the entire article complete with links to register your opposition: http://www.chicagotribune.com/news/local/northwest/chi-council_25jan25,0,2809209.story

Best,

JLC