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Over 5,000 Chicago business properties face potential tax hike from Johnson’s ‘mansion tax’
Illinois Policy experts are available to comment on the mayor’s real estate transfer tax hike on the March 19 ballot in Chicago

CHICAGO (March 4, 2024) – Early voting begins today for all 50 Chicago wards for the March 19 primary election. Despite legal challenges, residents will still vote on Chicago Mayor Brandon Johnson’s controversial real estate tax hike that increases the transfer tax on properties valued over $1.12 million.

If voters approve it, new analysis from Illinois Policy found 5,142 commercial properties around Chicago could be affected and face higher taxes if sold. This includes 124 super markets, 196 motels, 57 gas stations, 26 theaters and four bowling alleys.

These properties include beloved Chicago landmarks such as Pequod’s, Lou Mitchell’s, The Vic Theatre, Waveland Bowl and Mr. Beef.

“This is really a tax on mom-and-pop shops, restaurants and entertainment venues. Chicago’s business sector is already on shaky ground. Making it harder to start, operate and sell businesses is the last thing the city needs,” said Bryce Hill, director of fiscal and economic research at Illinois Policy.

Johnson’s proposal will tack on extra costs to Chicago businesses without any plans for how the revenue will be spent. The referendum’s current language allows the mayor to use the generated earnings from the tax increase for any initiatives so long as it loosely relates to “homelessness.”

“This tax hike will create a slush fund for Chicago politicians. That’s a dangerous move for Chicagoans when the business community is already suffering under record taxes, vacancies and crime,” Hill said. 

Illinois Policy experts are available for Zoom or in-person interviews to discuss what voters need to know about Johnson’s real estate tax hike and its effects on Chicagoans.

To read more about Johnson’s real estate tax on businesses, visit illin.is/biztaxhike. 

For interviews or interviews, contact media@illinoispolicy.org or (312) 607-4977.