New Taxes Chicago Residents Will Face 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.

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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.n
nThe 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 Assessor’s Office. The increases are expected to vary widely based on a property’s change in current market value.
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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.n
nAverage 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.
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Starting in Feb. 2017, Chicagoans will be charged an additional seven cents for each bag needed to pack their goods at retail stores. The fee was initially set to go into effect on Jan. 1, but the city has pushed it back to Feb. 1, according to the Sun-Times.
nThe 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.
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.n
nNear 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.
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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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