Chicago Voters Back Vacant Commercial Property Tax
Owners of long-term vacant commercial or investment property in Chicago would pay the tax only if the City Council approves it.
Updated on Nov. 6, 2026 in Commercial
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Should Chicago tax owners of long-term vacant properties to fund public schools?
Chicago voters approved a nonbinding referendum backing an annual vacant property tax to help fund Chicago Public Schools. The tax would apply to owners of long-term vacant or undeveloped commercial or investment properties, and it takes effect only if the City Council introduces and approves it.
Why it matters
CPS entered the school year facing a $730 million deficit and has already raised property taxes to the legal limit, which is why the district is looking for new revenue. For commercial and investment property owners in Chicago, a vacancy tax would change the cost of holding idle buildings or lots.
Nearly 74% of the 624,339 Chicago voters backed the nonbinding referendum, compared with about 26%, or 163,655 voters, who opposed it. The referendum did not define long-term vacancy or set a tax rate, and CPS faced a $730 million deficit entering the current school year.
The players
Chicago Public Schools
The city's public school district, which faces a $730 million deficit and is the intended recipient of the proposed vacancy tax revenue.
Chicago City Council
The body that would have to introduce and approve any ordinance before the vacancy tax could take effect.
Baltimore
A city that approved a vacancy tax in 2024, which went into effect July 1, and offers an example of how such a tax has been used locally.
Washington, D.C.
A city that implemented a vacancy tax in 2011, providing an earlier precedent for taxing idle property.
The details
The referendum asked whether owners of vacant or undeveloped property should pay an annual tax that would support CPS. Because the vote is nonbinding, it does not create the tax on its own; the City Council would have to introduce and approve an ordinance before any charge applies. Vacant lots near schools can become dumping grounds and a source of blight, which is part of the argument supporting the measure.
Timeline
2011: Washington, D.C. implemented a vacancy tax.
2024: Baltimore approved a vacancy tax.
July 1: Baltimore's vacancy tax went into effect.
November 3, 2026: Chicago voters approved the nonbinding referendum.
The Home Front
Chicago's proposal follows Washington, D.C., which implemented a vacancy tax in 2011, and Baltimore, which approved one in 2024 that took effect July 1. Both cities offer comparisons for how a vacancy tax on idle commercial and investment property could be structured locally.
If you own commercial or investment property in Chicago that sits vacant or undeveloped, track whether the City Council introduces an ordinance and what tax rate it sets. Gather records of how long each property has been unoccupied so you can respond quickly if a vacancy tax is adopted.
The takeaway
A nonbinding vote does not change anyone's tax bill, so the City Council's action is the step to watch. If you hold idle commercial property, keep a dated record of its vacancy status and consult a licensed real estate professional or tax advisor before any ordinance takes effect.
Further reading
For more on how property and commercial real estate are taxed and valued, explore the Commercial section.
Source note: This article includes information reported by Chicago Sun-Times.
Live Poll
Should Chicago tax owners of long-term vacant properties to fund public schools?
