Because City of Chicago is in debt to its pension funds, Chicago needs new revenue.
The following proposal will bring some revenue and it should be passable.
Tax sales of homes (properties that have taken the "homeowners exemption" which saves $250-2,000/year).
Here's the catch: if the owner buys another home in Chicago (residential property where owner qualifies for and takes homeowner exemption) the owner gets 100% of the tax rebated. Also, if the homeowner lives there for 20 years or longer, the sale would be exempt from taxation.
How much would the tax be?
1% on value up to $250,000 of sale price
1.5% on value between $250-500,000 of sale price
2% on value between $500K- $1 million
4% on value between $1-2 million
8% on value over $2 million
There would be a step down for people who owned the property over 16 years.
If property owned:
16 years ==> only 80% of the tax paid
17 years ==> only 60% of the tax paid
18 years ==> only 40% of the tax paid
19 years ==> only 20% of the tax paid
The tax would not apply to seniors that have lived in Chicago for 20+ years and downsized to a more modest priced home in the last twenty years.
If an owner sells a home and then rents in Chicago, s/he would get the tax rebated one third at a time at the 12, 24 & 36 month points, if s/he still maintains her/his legal residence in Chicago.
This tax would apply to the heirs of an estate, even if the deceased did live in Chicago for 20+ years.