Chicago Teachers Union endorses plan making their property a “mansion”

The Chicago Teachers Union is pushing a plan to tax “mansions.” But the tax would mainly hit commercial buildings, such as the building where the union is housed.

The Chicago Teachers Union is advocating for Chicago Mayor Brandon Johnson’s plan to raise the city’s real estate transfer tax on purchasing million-dollar properties, one of which they own.

CTU is part of a coalition arguing the rich need to pay their fair share by targeting million-dollar properties with a “mansion tax.” But most of the property sales in that price range are commercial properties, by a 9-to-1 margin, according to one analysis. CTU had also donated $200,000 to the pro-tax effort as of Feb. 20.

CTU’s foundation is listed as the owner of a West Side property worth $6.6 million, making the teachers union an example of its own distortion. The building is the Chicago Teachers Union Center, with the union’s headquarters, its foundation and leased space in a former valve factory.

Johnson’s plan would raise the real estate transfer tax for million-dollar properties from a flat 0.75% tax to a tiered system. Under Johnson’s plan, purchasing CTU’s property would cost an extra $120,102 based on the current assessed value of $6.6 million.

When they bought the property, then-CTU President Jesse Sharkey said it would cost $8.5 million. The union was exempted from the real estate transfer tax because of their nonprofit status.

Chicago businesses already pay the second-highest commercial property taxes in the nation. Greater upfront costs would make it harder to start a business in Chicago than it already is.

When a business buys a million-dollar property, it doesn’t always mean they show up with millions in cash. They need to take out a mortgage. Small businesses and entrepreneurs can least afford higher costs to starting a business, especially costs that don’t help their progress towards opening their doors and creating jobs that can truly help reduce homelessness.

Early voting in Chicago is underway for the March 19 primary, with Johnson’s tax hike plan near the bottom of the ballot. While a Cook County judge ruled the question invalid and unconstitutional, that ruling is being appealed and the question remains on the ballot.

Chicagoans should still vote on the question and let Johnson know what they think of his tax hike.

Click here to check your voter registration information.

Paid for by the Vote No on Chicago Real Estate Tax.