Chicago ‘mansion’ tax to fund homeless services stuck in legal limbo while on the ballot

CHICAGO (AP) — An unusual legal challenge may upend the future of a Chicago ballot measure that would hike a real estate tax on high-end property sales to fund services for homeless people.

Such citywide ballot measures are rare in the nation’s third-largest city, but other cities, including Los Angeles, have approved similar so-called “mansion taxes.”

A Cook County judge last month rejected the measure, but backers of the effort, called Bring Chicago Home, hope it will be overturned.

Early voting for the March 19 primary in Chicago has already started, so the measure remains on the ballot as it’s being settled in the courts.

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Here’s a closer look at the ballot measure and the issues surrounding it.

THE REFERENDUM

The referendum asks Chicago voters to support an increase on a transfer tax for properties over $1 million. It’s a one-time buyer’s fee.

Chicago’s rate is currently 0.75% on all property sales. The proposal overhauls the tax structure: 2% for properties over $1 million, 3% on properties over $1.5