Here's a Look at Some New Taxes Chicagoans Will Face in 2017

Here’s a look at some of the new city laws taking effect in 2017.

At the start of 2017, Chicago residents will face a host of new taxes and fees, from a substantial property tax hike to a new bag tax at the grocery store.

Here’s a look at some of the new city laws taking effect in 2017:

Property Tax

Mayor Rahm Emanuel revealed his 2016 budget proposal last September, calling for a proposed $543 million property tax hike to raise money for pension payments for police and firefighters. As a result, the city adopted a four-year property tax increase.

The average homeowner in Chicago will now see property bills go up nearly 13 percent or just over $400 per year. Individual increases will likely swing much higher or lower, according to the Cook County Accessor’s Office. The increases are expected to vary widely based on a property’s change in current market value.

Chicago’s Property Tax Rebate Program is set to expire Friday after being extended last month, although some homeowners might still need to cash in on the offer. City homeowners can still apply for a rebate at any of the city’s over 20 neighborhood locations through Friday. For additional information about the program and how to apply, visit here.

Water Tax

Mayor Rahm Emanuel's proposed water and sewer tax hike, aimed at stabilizing pension funds for municipal employees, was approved by Chicago's City Council in September. The increase is set to begin 2017, generating an expected $56 million that year and approximately $239 million annually by 2020 and 2021.

Average city homeowners are expected to pay roughly $53 more in taxes in 2017. That number increases to roughly $115 in 2018, $181 in 2019 and $226 in 2020 and 2021, according to the Chicago Sun-Times.

Additionally, Chicagoans who don’t pay their water and sewer bills within 24 days would incur an additional interest charge of .25 percent per month.

Bag Tax

Starting in 2017, Chicagoans will be charged an additional seven cents for each bag needed to pack their goods at retail stores.

The 7 cents-a-bag fee was a compromise decided on when Mayor Emanuel agreed to lift the plastic bag ban in the city. It’s expected to generate roughly $13 million a year, with the city receiving about $9.2 million and the additional amount going to store merchants. The tax applies to both paper and plastic bags.

Parking Meters

Another item on the mayor’s 2017 agenda calls for the creation of hundreds of new parking meter spaces downtown, as well as an increase to current parking costs.

Near Wrigley Field, parking meter costs will spike up to $4 per hour, with rates for loading zones rising up to $14 per hour. Costs to park at both Chicago airports will also rise dramatically under Emanuel’s 2017 proposal.

Amusement Tax

Buying tickets to sporting events or shows like “Hamilton” will also get more expensive in 2017. Emanuel’s new budget plan includes a 3.5 percent amusement tax to be added on the full price of such items. Currently, customers are only taxed on the markup.

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