Chicago raises property tax

The first domino in a potential tax avalanche fell Tuesday when Chicago's city council voted to raise residents' property taxes as well as a host of other fees and taxes.

While that vote doesn't directly affect suburbanites, chances are if you venture into the city on a regular basis -- or even have a cell phone with a 312 or 773 area code -- you'll pay more.

The big question for suburbanites is whether the city's domino will be strong enough to topple county and state governments into following suit with their own tax increases.

Cook County Board President Todd Stroger has proposed raising taxes a whopping $750 million a year in 2009 by raising the sales tax two percentage points. Each municipality's overall rate differs, but in Chicago, that would mean an increase from 9 percent to 11 percent.

No vote is scheduled on that proposal and was in fact postponed from an earlier date when Stroger realized he didn't have the votes to pass it.

On the state level, House Speaker Michael Madigan is proposing a .25 percent increase in the gas sales tax in the six-county metropolitan area to fund the RTA, which is facing a shortfall.

Madigan has already lost one vote in the house and is facing strong opposition from Gov. Rod Blagojevich.

Suburbanites who travel into the city will be hit by its new taxes on beer, wine and liquor. They also will face higher fines on parking violations and stop light violations if caught by automated cameras.

If you own a cell phone with a 312 or 773 area code, expect that line, for a 911 surcharge, to increase from $1.25 to $2.50 -- even if you live in the suburbs.

Prices at the Taste of Chicago will also be higher because the city increased the cost by 50 cents on a strip of food tickets to up its take from $1.50 to $2.

"Tax increases, higher utility bills and insurance costs are all going to squeeze out the mom-and-pop neighborhood business we grew up with in Chicago," said Beth Murphy, in a prepared statement decrying increases in liquor taxes. Murphy owns Murphy's Bleachers, a bar across from Wrigley Field.

Mayor Richard M. Daley defended the increases as necessary. While 21 of 50 aldermen voted against the property tax increase, only five aldermen showed any support for cutting city services, something that would have to happen to keep taxes constant, he said.

"It's heavy lifting," said Daley. "They didn't want to get blamed for it (the tax increases)."

Attack of the taxes

Here are some new and proposed taxes that may be coming to a theater (or store or festival or parking lot) near you.

Chicago

Just because you don't live in Chicago doesn't mean you're immune to its taxes. If you work, play or shop there, you might run into these new taxes passed Tuesday:

• Bottled water: 5 cents more per bottle

• Booze: Tax on a six-pack of beer goes from 9 cents to 16 cents; For a .750 liter bottle of wine with less than 14 percent alcohol, the tax is increasing from 5 cents to 7 cents; and on a liter of hard liquor, the tax is going up from 48 cents to 71 cents.

• Taste of Chicago: 50 cents more per strip of tickets will go to taxes.

• Parking tickets: The fines for 32 different violations are increasing. For instance, it'll now cost you $150 for parking in a fire lane instead of $75. If you leave your car in a public lot past permitted hours, you might have to pay $50 instead of $25. Park in a no parking zone in the Loop, the fines is going from $50 to $60.

County

Although other ideas have been floated, the following are the taxes proposed by Cook County Board President Todd Stroger for next year:

• Sales tax: An additional 2 cents per every dollar of merchandise purchased. On a $20,000 car, that would mean $400 more.

• Gasoline tax: An increase from 6 cents to 12 cents per gallon. That is about a buck more on a 15-gallon gas tank.

• Parking tax: For lots that charge $12 or more per day, the tax would increase from $1 to $2.

State

Illinois House Speaker Michael Madigan is supporting an effort to increase the sales tax by a quarter-percentage point in the six-county Chicago region. The money would go to the Regional Transportation Authority.

• The tax would add $.0025 per every dollar of merchandise purchased. On a $20,000 car, that would mean $50 more.