Lake County Gazette

Martin McLaughlin, an Illinois state representative, announced that lawmakers are considering expanding the real estate transfer tax to impact both buyers and sellers. This statement was made on the social media platform X.

"WARNING HOME BUYERS AND SELLERS," said Martin J. Mclaughlin, State Representative from Illinois. "Did you know the Democrats are proposing yet another TAX INCREASE? This time, they're going after property owners AGAIN! Illinois lawmakers are once again floating the idea of expanding the real estate transfer tax."

In mid-2025, discussions over long-term funding for Chicagoland transit led to proposals in Springfield that included increasing real estate transfer taxes in suburban counties. According to Capitol News Illinois, a broader transit reform and funding package advanced in the Senate but stalled in the House before adjournment on June 1, 2025. This has kept the issue alive for future legislative sessions. The ongoing debate focuses on whether suburban sellers should bear new transfer-tax burdens to support regional transit operations and pensions.

Industry briefings from Illinois REALTORS outlined specific proposals discussed during negotiations: a potential 600% increase in suburban real estate transfer taxes across collar counties and suburban Cook County as part of a transit package, along with other revenue ideas. The association launched a public awareness campaign across the region to explain estimated closing-cost impacts and mobilize homeowners, warning that significant increases in the per-thousand rate would directly affect sellers at the point of sale.

Business coverage quantified the potential impact of these proposals. Crain’s reported that raising suburban transfer taxes to approximately $3 per $1,000 of value could add thousands to typical transactions. This prompted Illinois REALTORS to fund a $500,000 campaign opposing the change. Separate local reports similarly described a six-fold increase under discussion, viewed by advocates as essential for transit support and by critics as detrimental to regional housing markets already facing affordability and inventory challenges.

McLaughlin represents Illinois’ 52nd District and is a Republican small-business owner with expertise in pension management. Before joining the General Assembly in 2021, he served as Village President of Barrington Hills, focusing on fiscal stewardship and local reforms. In Springfield, he has served on Revenue & Finance and Judiciary committees, advocating taxpayer protections and accountability. He emphasizes pro-growth policies and homeowner affordability as core priorities for his district.