Battle over Chicago's real estate transfer tax heats up

CHICAGO - Supporters of a Chicago ballot initiative to prevent homelessness knocked on doors in the city's 50th Ward on Sunday. 

The group handed out leaflets, asking people to vote "yes" on a new real estate transfer tax. 

The question, which will appear on the state's March primary ballot, is facing a legal challenge. 

Currently, the city charges a flat rate on all property sales. If the referendum passes, home sales over a million dollars would be taxed at a higher rate. 

The lawsuit claims the initiative violates the state's municipal code and constitution and does not outline exactly how the new tax revenue would be spent.