More than $1.1 billion in new city and county taxes, tax hikes and fee increases in Chicago will cost every household more than $1,100 in 2016, a new report says.
The grim breakdown by
ChicagoNow.com decries the crippling hikes — and lack of accompanying reforms.
"More than a billion dollars in new money taken from hardworking residents, and no reform to show for it — this is the Chicago way," the website declares.
"A decades-long failure in leadership now jeopardizes the future of a once-great city, from which residents are fleeing for brighter futures every day."
The website analyzes the effect of Mayor Rahm Emmanuel's approved $7.8 billion budget plan for a massive property tax hike and other city and county fees to help close a shortfall and improve the city's underfunded pension system.
For example, the city's largest property-tax hike will cost the owner of a $250,000 home a $600 hike next year. The hike will be fully phased in over four years.
Chicago Now also reports there will be a new $9.50-a-month garbage-collection fee; a new 52-cents-per-ride tax on rideshare services such as Uber and Lyft, a new 50-cents-per-ride tax on traditional taxi rides, and a $5 tax on rideshare services for every pickup and drop-off at area airports and convention sites.
The website reports a new Cook County sales-tax hike will bring the city's combined sales-tax rate to 10.25 percent from 9.25 percent — the highest combined rate among U.S. cities.
Other 2016 raises include:
- A new 9 percent tax on cloud computing as well as a new 9 percent tax on streaming services such as Netflix and Spotify
- A hike in building-permit fees
- A new $1.25 tax on the sale of e-cigarettes and a 25-cent-per-milliliter tax on the accompanying fluid.
- A new 1 percent tax on hotels and motels will push the overall hotel tax in Chicago to 17.4 percent
- A new 3 percent tax on sports and entertainment ticket resellers.
- A new tax on ammunition, ranging from 1 cent to 5 cents per round.
The two largest hits to families' bottom lines, the Chicago property-tax hike and the Cook County sales-tax hike, will both go primarily to fund government-worker pensions, ChicagoNow.com reports.
The Associated Press contributed to this report.
© 2024 Newsmax. All rights reserved.