Mayor Rahm Emanuel is planning to submit a property tax rate hike proposal in order to fund $500 million pension payments for police and firefighters.
A City Hall source and the Mayor's City Council floor leader relayed the news to the Chicago Tribune Wednesday, September 2. Aside from the property tax increase, the mayor is reportedly planning to introduce a garbage collection tax and a new tax on electronic cigarettes and smokeless tobacco products. The mayor will also push for a new per-ride fee on taxis and ride-hailing services such as Uber. These proposed tax rate increases would be the largest one in the city's history, stated the Tribune.
The publication's City Hall source also shared that although the mayor is eyeing a property tax hike that would result to between $450 million and $550 million funding for the police and fire pensions, Emanuel has not decided on the final number yet. However, Alderman Patrick O'Connor, 40th district, identified the figure to be $450 million for police and fire pensions, along with $50 million that will help fund a Chicago Public Schools construction program. O'Connor mentioned that the proposed rate hikes are aimed to address the annual budget deficit and "further scale back some of the poor financial practices." He added, "The administration also wants to put the police and fire pension systems on a road to solvency."
Meanwhile, Mayor Emanuel's proposed $500 million property tax hike will translate to an additional $500 annual tax from homeowners whose house is valued at $250,000, according to the Chicago Times. The administration's planned new garbage collection tax would also cost each household around $11 to $12 every month. Meanwhile, e-cigarettes and other smokeless tobacco products bought in Chicago would also be taxed an estimated $7.17 per pack. As for Uber rides and other similar services, a surcharge of $1 per ride will reportedly be added.
