Media Advisory
“Wrong Tax, Wrong Time”: Coalition unites to fight Real Estate Transfer Tax
FOR IMMEDIATE RELEASE: January 31, 2008
Chicago, Ill. – Standing shoulder to shoulder at City Hall this morning, 11 spokespersons from nine local organizations held a press conference denouncing the proposed Real Estate Transfer Tax that will go before City Council on Wednesday, February 6, 2008.
If passed, the increase will raise transfer taxes on all Chicago real estate transactions by 40%, to roughly $10.50 per $1,000. Revenue from the increased tax would be used to fund CTA pension plans, not improve CTA quality or service.
“Collectively, we service an industry that is responsible for hundreds of millions of dollars in tax revenue and is moreover a major catalyst in community and economic development,” said Brian Bernardoni, Government Affairs Director of the 15,000-member Chicago Association of REALTORS®. “With the funds from the transfer tax going to pensions not passengers, this tax will not put another train on the tracks, another bus on the road nor improve customer service or slow zones. This is the wrong tax on the wrong people at the wrong time.”
Joining the Chicago Association of REALTORS® in opposing the tax hike are: the Chicagoland Chamber of Commerce, the Chicagoland Apartment Association, the Chicago Real Estate Alliance, the Homebuilders of Greater Chicago, the Attainable Housing Alliance, the Residential Construction Employees Council, the Mainstreet Association of REALTORS® and the Illinois Association of REALTORS®.
The coalition is collectively urging Chicagoans to visit www.WrongTax.com, which features an interactive Transfer Tax calculator and direct links Chicagoans can click to contact their Aldermen and oppose the tax.
“Taxpayers in the Chicago region have been under siege in recent months, with more than $800 million in new taxes coming out of their pockets. This impacts people and businesses alike, and adds a level of uncertainty to the economic competitiveness and jobs climate of our region,” added Chicagoland Chamber of Commerce President and CEO Jerry Roper. “These elected officials are making the unfortunate choice to push through tax increases when our national economy is struggling and our local economy needs a boost.”
Kay Wirth, President of the Illinois Association of REALTORS®, expressed her organization’s concerns. “We think homeowners and investors will be shocked that the revenues from this proposal will be going to fund the CTA’s pensions,” she said. “We question why Chicago homebuyers will have to shell out several hundred or maybe thousands of dollars more for a CTA pension system when many of those home buyers do not themselves have a guaranteed pension.”
“When imposed upon the buyer, transfer taxes increase the amount a buyer must gather for a down payment, the biggest obstacle to purchasing a home,” said David Hanna, President-Elect of the Chicago Association of REALTORS®. “When imposed on the seller, transfer taxes deplete the equity that has been built up by long time homeowners, which is often the bulk of their life savings… [we] believe transfer taxes are a detriment to homeownership and the purchasing process.”
The Chicago Association of REALTORS® (C.A.R. is the "Voice for Real Estate®” in Chicago since 1883, and represents more than 15,000 members from all real estate specialties including commercial sales, development, property management, appraisal, auctions, and residential sales.
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Contacts
Barbara Matthopoulos
Director of Communications & Media Relations
Office: (312) 214-5511
Cell: (312) 730-4950
bmatthopoulos@chicagorealtor.com
Brett Ashley McKenzie
Senior Editor & Communications Specialist
Office: (312) 214-5539
bmckenzie@chicagorealtor.com
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