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Mayor Wants to Hike Cable TV Tax: Report

Proposal would raise $9 million, chip away at $339 million shortfall

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Mayor Wants to Hike Cable TV Tax: Report


Mayor Rahm Emanuel reportedly has a plan to raise $9 million: modify the city's amusement tax exemption and hike the tax added to monthly cable bills.

The mayor will include the idea in his upcoming 2014 budget proposal, the Chicago Sun-Times reported Tuesday. The added revenue would pay for enhanced cultural programming and chip away at a $338.7 million shortfall.

Cable companies pay a 9 percent amusement tax and nearly always pass that onto consumers. But there's currently a 5 percent exemption, leaving just 4 percent to be collected. The mayor's plan would decrease the exemption by 2 percent, forcing customers to pay a 6 percent amusement tax.

City Hall officials said the tax would amount to just a few dollars per month, adding that cable companies have the option to not pass the tax onto customers, Fran Spielman reported in the Sun-Times.

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