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Chicago voters back nonbinding vacancy tax for public schools

Chicago voters back nonbinding vacancy tax for public schools

Rule Changes Chicago, IL local

Nearly 74% supported the advisory referendum; City Council must act for it to become law.

Overview

Updated 59 minutes ago

Chicago voters approved a nonbinding referendum on Tuesday that would tax owners of long-term vacant or undeveloped commercial and investment property to fund Chicago Public Schools. Nearly 74% voted yes, with 163,655 of 624,339 voters opposed.

The result is advisory. The tax cannot take effect unless an ordinance is introduced and the City Council approves it. The referendum did not define long-term or set a rate, and CPS faced a $730 million deficit entering the school year.

Why it matters

If the City Council turns the referendum into law, vacant land becomes a recurring revenue source for Chicago schools and a new cost for owners.

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Key Indicators

74%
Voter support
Share of Chicago voters backing the advisory vacancy-tax referendum.
624,339
Voters
Total voters reported in the referendum tally.
163,655
Opposed
Voters against the referendum.
$730M
CPS deficit
Deficit CPS faced entering the school year, per the Sun-Times.

Voices

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People Involved

Organizations Involved

Timeline

1 event Latest: 3 days ago
  1. Chicago voters back vacancy-tax referendum

    Latest Election

    Nearly 74% approve a nonbinding tax on long-term vacant or undeveloped property to fund CPS.

Scenarios

1

City Council passes a vacancy tax ordinance

Possible Resolves by End of 2027

Discussed by: CPS board members and referendum supporters

The Council would need to define long-term vacancy, set a rate, and approve an ordinance. The 74% result gives supporters a mandate, but the Council is divided and members face elections.

2

City Council leaves the referendum advisory

Uncertain Resolves by End of 2027

Discussed by: Referendum supporters and local development groups

The Council could decline to introduce or vote on a vacancy-tax ordinance. The referendum would remain a statement of voter preference without legal effect.

3

Mayor advances an alternative infill or impact-fee plan

Possible Resolves by Q2 2027

Discussed by: Celadon Partners CEO Scott Henry and Mayor Brandon Johnson's office

The mayor's office could propose a different approach, such as using tax increment financing to encourage redevelopment and charging a one-time impact fee. That would compete with the vacancy-tax proposal.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2011

Washington, D.C., vacancy tax (2011)

Washington, D.C., implemented a vacancy tax in 2011, setting a higher tax rate for vacant and blighted properties. The Sun-Times cites it as an existing model for Chicago.

Then

The city created a separate tax schedule for vacant and blighted property.

Now

It remains one of the U.S. vacancy-tax models cited in Chicago's debate.

Why this matters now

It shows a U.S. city can impose a higher rate on vacant property, though the article does not report its revenue results.

2024

Baltimore vacancy tax (2024)

Baltimore approved a vacancy tax in 2024, charging owners three times their initial property tax rate in the first year a building is deemed vacant and four times each subsequent year. It went into effect July 1.

Then

The tax took effect on July 1, 2024.

Now

It is one of the newest U.S. vacancy-tax models cited in the debate.

Why this matters now

It shows how a city can set escalating rates, a detail Chicago's referendum left open.

Sources

(1)