Taxes, Chicago-Style

City Of Chicago Bag Tax - Goes In Effect February 1, 2017

Edtior's Note: This is not a price charged by the store for a bag but a tax applied by the city to each bag that a store uses to bag your purchases, which is payable to the city of Chicago.

To encourage customers to bring their own reusable bags, the City of Chicago is implementing a $.07 tax on each paper and plastic bag provided by stores to customers to carry out purchased items.  Businesses will start collecting the tax on February 1, 2017.

Some exemptions, include:

Paper and Plastic bags used to package loose bulk items, such as fruit, vegetables, nuts, grains, candy, cookies, or small hardware items or to contain or wrap frozen foods, meat or fish, whether prepackaged or not.

Bags Provided by a pharmacist to contain prescription drugs, dry cleaning, or garment bags and newspaper bags.

Bags sold in packages containing multiple bags intended for use as garbage bags, pet waste bags or yard waste bags.

Bags provided by a dine-in or take-out restaurant to contain food or drink purchased by the restaurant's customers.

It is a good time to start the new habit now.  Take your bags to the store with you!

Paper and Plastic bags used to package loose bulk items, such as fruit, vegetables, nuts, grains, candy, cookies, or small hardware items or to contain or wrap frozen foods, meat or fish, whether prepackaged or not.

For more information, visit: https://www.cityofchicago.org/city/en/depts/fin/provdrs/tax_division/news/2016/december/NewCheckoutBagTax.html

Chicago property tax bill double whammy: Increases plus an assessment hike

August 1, 2016

CHICAGO TRIBUNE - Anne McDermott had braced herself for a big increase in the property taxes on her Near South Side town home, but when she opened the bill last month, she was still taken aback.

She'd figured a boost of maybe $550 on the $4,214 she paid last year. That's a jump of about 13 percent, the average increase on Chicago property tax bills for 2016. But McDermott's bill went up by nearly $1,360 — more than 32 percent.

It was the result of being hit with a double whammy: Not only were huge tax hikes by City Hall and Chicago Public Schools taking effect, but the taxman came as he does every three years and reassessed the value of McDermott's home. And he concluded it was worth a whopping 31 percent more.

"I had to sit down, and then I read things to see if I could make sense of it," said McDermott, who moved to the city seven years ago from the western suburbs, where the tax rates were higher but the housing prices were lower. "It's a little scary, because this is I think one of the largest property taxes the city has done, and that may not be the end of it."

Thousands of home and business property owners in trendier parts of the city saw tax increases far above the average boost of 13 percent. Like McDermott, the growth in the value of their house for tax purposes — as determined by Cook County Assessor Joe Berrios' office — far outpaced the growth in other parts of the city.

Those hefty assessed value increases compounded the effects of the recent tax increases, which Mayor Rahm Emanuel pushed through the City Council and Chicago Board of Education last year to shore up pension funds for city police officers and firefighters and give financially struggling CPS more money to pay for construction projects.

The practical effect is that folks in many city neighborhoods are rejiggering household and business budgets to come up with the money needed to make this year's second property tax payment, which reflects the larger-than-expected increases and is due Monday.

In many cases, taxpayers are struggling to understand why their bills went up far more than anticipated. The explanation lies in the complex way property taxes are calculated in Illinois, and how property values factor into that equation.

How it works

Local governments — including the city, Cook County, CPS, the Chicago Park District and the Metropolitan Water Reclamation District — figure out how much money they want to collect from property taxes. That's called the levy. Emanuel asked for a record property tax increase at City Hall and a larger-than-usual tax hike at CPS. The result was a much higher total property tax levy in the city. 

These property tax bill increases top the list

Chicago property taxes to increase by 12.8 percent

June 13, 2016

CHICAGO (WLS) - The Cook County Clerk's office released the 2015 property tax rates on Monday for the entire county. While the northern and southern suburbs of Cook County can expect a slight tax bill increase of 1.7 percent and 2.1 percent, respectively, Chicago's property tax bills will rise by 12.8 percent.

According to the Clerk's office, citizens of Chicago who paid an average tax bill of $3,220.32 in 2014, will pay an average of $3,633.19 on their 2015 bills, an increase of $412.87.

Cook County property taxes are paid in arrears, meaning the bill for 2015 is paid during 2016.

The Clerk's office says that this substantial increase is due the city being reassessed in 2015, which resulted in a 9.3 percent increase in the equalized assessed value citywide. The equalized assessed value, or EAV, is a multiplier used in calculating property taxes to bring the total assessed value of all properties in Cook County to a level that is equal to 33.3 percent of the total market value of all the real estate in the county.

The Clerk's office is quick to note that a majority of Chicago's tax increase is due to the city increasing the pension portion of its levy by $318 million. As a result of the reassessment, the Clerk's office says the city tax rate actually increased less than one percent compared to 2014.

Cook County is divided into three areas, Chicago, northern suburbs, and southern suburbs, which are reassessed every three years. The southern suburbs were reassessed in 2014. Chicago was reassessed in 2015. The northern suburbs will be reassessed in 2016.

Tax bills for Cook County property owners are due August 1, 2016.

Recycling Now Mandatory for Rental Apartments and Condos

A new city ordinance, effective January 1st, requires owners of multi-unit buildings to provide "source-separated, single stream recycling." Apartment building residents will have the same kind of recycling services as Chicagoans who receive garbage services from the city. Residents put all of their recycling into one bin, to be collected and sorted.

Building owners and condominium associations will have a 30-day grace period before tickets and fines will be issued. After the grace period, owners who do not comply could face a fine of $500-$1,000 for the first offense. The fines would increase to $1,000-$2,500 for the second offense and $2,500-$5,000 for further violations within a one-year period.

Posted on January 12, 2017.

Tax List from the City of Chicago Official Site

PLEASE NOTE: The following Tax List and the links to summaries of the listed taxes are intended for general informational purposes only.  Taxpayers and tax collectors should consult the current versions of all relevant tax ordinances, rulings and regulations, which supersede the information contained in the List and summaries.  Any taxpayers or tax collectors with questions should contact the City's Department of Finance or Department of Law for guidance.

Amusement Tax - (7510)

Applies to owners, managers, or operators of amusements or of venues where amusements are being held, and resellers of tickets for amusements.

Amusement Tax - Subscribers to Paid Television Programing - (7511)

Applies to businesses who subscribe to paid programming in Chicago whose providers do not collect the 9% Amusement Tax.

Boat Mooring Tax - (7560)

Applies to the mooring or docking of any watercraft for a fee in or on a harbor, river or other body of water within the corporate limits or jurisdiction of the city.

Bottled Water Tax - (1904, 1904IN)

Applies to the retail sale of bottled water in the City at a rate of $0.05 per bottle of water.

Checkout Bag Tax - (2737) Imposed on the retail sale or use of checkout bags in Chicago.

Cigarette Tax - (7506) Applies to wholesale cigarette dealers.

Electricity Infrastructure Maintenance Fee - (7576) The Electricity IMF is imposed on electricity deliverers as compensation for using public rights of way in the City of Chicago.

Electricity Use Tax - (7578) Applies to the privilege of using or consuming electricity acquired in a purchase at retail and used or consumed within the corporate limits of the city. Those granted reseller status by the Department should file form 7578A.

Emergency Telephone System Surcharge - Landline - (2908) Applies to businesses that supply network telephone numbers that are billed to a Chicago address.

Emergency Telephone System Surcharge - Wireless - (2906) Applies to businesses that supply wireless telephone numbers that are billed to a Chicago address.

Employers' Expense Tax - (7540) Applied to businesses that employed at least 50 employees that performed at least 50% of their work in Chicago.  This tax was discontinued effective January 1, 2014.

Foreign Fire Insurance Tax - (7505) Applies to businesses not incorporated in Illinois that provide fire insurance in Chicago.

Fountain Soft Drink Tax - (7590) Applies to businesses that sell soft drink syrup to retailers located in Chicago.

Gas Use Tax - (7574) Applies to businesses who purchase gas from sellers who are not subject to either Distributor or Reseller Occupation Taxes.

Ground Transportation Tax - (7595) Applies to businesses that provide ground transportation vehicles for hire in Chicago for consideration.

Hotel Accommodations Tax - (7520) Applies to businesses that rent or lease hotel accommodations.

Liquid Nicotine Product Tax - (7514) Imposed on the retail sale of liquid nicotine products in the City.

Liquor Tax - (7573) Applies to wholesale businesses that sell alcoholic beverages for sale in Chicago.

MPEA Airport Departure Tax - (8500) Applies to businesses that provide ground transportation for hire to passengers departing from a Chicago airport.

Motor Vehicle Lessor Tax - (7575) Applies to businesses engaged in leasing motor vehicles.

Non-Retail Transfer of Motor Vehicles Tax - (8405) Applies to the non-retail purchase of motor vehicles.

Occupation Tax -Natural Gas Distributor and Reseller - (7571) Applies to businesses engaged in distributing, supplying, furnishing, or selling natural gas.

Other Tobacco Products Tax - (7515) Imposed on the purchase or use of all other tobacco products within the City.

Parking Tax - (7530) Applies to businesses that operate parking lots or perform valet operations.

Personal Property Lease Transaction Tax - (7550) Applies to businesses or individuals that are either a lessor or lessee of personal property used in Chicago.

Real Property Transfer Tax - (7551)(7553) Applies to transfers of title to or beneficial interest in real property located in Chicago.

Restaurant Tax - (7525) Applies to all places for eating.

Telecommunications Tax - (7501) Applies to telecommunication retailers for all gross charges.

Tire Fee - (BA94) The Tire Fee applies to the retail sale of new tires at a rate of $1.00 per tire.

Use Tax for Non-Titled Personal Property - (8402B, 8402CO, 8402IN, 8403) Applies to purchases of non-titled tangible personal property outside of Chicago for use inside Chicago.

Use Tax for Titled Personal Property - (8400, 8400R) Applies to purchases of titled tangible personal property outside of Chicago for use inside Chicago.

Vehicle Fuel Tax - (7577) Applies to the sale of fuel to a retailer or use by a purchaser.