CHICAGO - Concerned over the impact on a struggling real estate market, the Chicago City Council reluctantly approved yesterday an increase in the city's tax on real estate transactions - a key funding component of the transit bailout package recently endorsed by the state General Assembly.

The tax - known as the real estate transfer tax - will go up by 40% to $10.50 per $1,000 of a property's sale price from $7.50 on April 1. The measure is expected to generate about $100 million annually. The revenues are earmarked for Chicago Transit Authority pension plans.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.