On Dec. 16, the Chicago City Council approved the 2025 budget, introducing several tax and fee increases to address the city's financial challenges. Notably, the budget avoids a property tax hike, which had been a point of contention.
Key Tax and Fee Increases:
Personal Property Lease Tax: The tax on equipment rentals, cloud computing services, and car rentals will rise from nine percent to 11 percent, generating an estimated $128 million in additional revenue.
Parking Garage and Valet Service Tax: Taxes on these services will increase from 22 percent to 23.25 percent, expected to raise over $13 million.
Check-Out Bag Tax: The tax on checkout bags will increase from seven to 10 cents per bag, adding approximately $5 million in revenue.
Amusement Tax on Streaming Services: The tax on streaming services like Netflix and Spotify will rise from nine percent to 10.25 percent, contributing an additional $13 million.
Residential Parking Zone Fee: Adding a residential parking zone to city stickers will cost an additional $5 for residents under 65.
The 2025 budget also includes several significant investments, such as the largest city-funded youth jobs program in Chicago's history, which will provide 29,000 jobs for young people next summer.
Another major aspect was the historic $570 million surplus from the city’s Tax Increment Financing (TIF). TIF funds will be allocated to essential services such as Chicago Public Schools, libraries, parks, and City Colleges, reinforcing the city’s commitment to strengthening neighborhoods.
Mayor Johnson emphasized that this budget is part of a long-term vision to invest in the city's future. “For too long, Chicago’s budgets balanced on the backs of working people, forcing them to bear the burden of cuts to schools, clinics, public housing, and critical services,” said Johnson in a press release. “The budget we passed today is an investment towards a better, stronger and safer future for Chicago where our young people, workers, and families are prioritized.”
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