CTA crisis

One proposed resolution to the current CTA crisis is the imposition of an additional transfer tax of $3/$1,000 of sales price on all property sales in suburban Cook County and the collar counties. I strongly urge you to contact your representatives to oppose any such measure, which could increase current transfer taxes in these communities by a whopping 600%.

The CTA crisis is real and requires serious consideration. While it may feel clean and easy to some in Springfield, it is not the appropriate remedy. Local homeowners already pay well above national rates in property taxes. Some local suburbs already collect upward of $3/$1,000 of purchase price in transfer taxes. If an additional $3/$1,000 were imposed in those communities, the owner of a $500,000 house would have the privilege of paying over $3,000 in taxes just to sell their home, in addition to all the property taxes paid over the years of ownership and any income tax owed if it is an investment property.

If we do this now, it will be near impossible to put the cork back in the bottle. Buyers and Sellers in Chicago now share a $10.50/$1,000 of purchase price transfer tax ($5,250 in transfer taxes on a $500,000 home). Some legislators will want to go back to this well every time we have a crisis, and we know this will not be the last one.

This solution a) punishes suburban homeowners by requiring them to cover more than their fair share of the bailout; b) risks devaluing our homes by increasing the cost of homeownership; c) deters investors from investing in our communities; and d) opens the door for future tax increases. Please speak up and oppose any CTA bill that includes a transfer tax increase.

Ernie Rose

Arlington Heights