Story by The Chicago Tribune
Mayor Rahm Emanuel plans to ask aldermen to increase property taxes by nearly $600 million during his second term, aides to the mayor confirmed Monday.
The largest city property tax in modern history will be paired with a series of other tax and fee hikes, including a garbage fee, new taxes on ride-sharing and taxi trips, new taxes on electronic cigarettes and an increase in building permit fees.
The Emanuel administration provided the details ahead of Emanuel’s 10 a.m. Tuesday budget speech to the Chicago City Council.
Here’s a breakdown:
•The city property tax hike would be phased in. It would increase by $318 million next year and another $109 million in 2017. The 2018 tab would go up by another $53 million, and the 2019 bill by $63 million. The total increase is $543 million — which Emanuel aides said would add about $543 to the tax bill on a home with a market value of $250,000.
•The mayor also will ask the council to authorize an additional $45 million tax for the Chicago Public Schools. That money would go to construction projects.
•The garbage collection fee would be $9.50 per dwelling unit. Lower-income senior citizens would pay half that amount. The fee would be tacked on to water bills. It would bring in about $62 million a year.
•The per-ride city fee on ride-share services like Uber and Lyft would increase by 20 cents to 50 cents. The same 50-cent fee would be tacked onto taxi rides for the first time. That would bring in about $30 million, with $25 million to help the city balance its books and the rest to help taxis expand their fleet of wheelchair accessible vehicles.
•Ride-share companies also would be allowed to pick up at O’Hare and Midway Airports and McCormick Place for the first time — but they’d have to pay a $5 fee for every drop-off and pickup at those locations as well as Navy Pier. Officials expect those fees to pour $30 million into city coffers.
•Taxi fares would increase by 15 percent.
•A new tax of $1.25 for every container of e-cigarette liquid plus 25 cents per milliliter would be imposed. That would generate about $1 million but would be aimed more toward deterring minors than generating money.