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| Home >> 2008 City of Chicago Budget Proposal |
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On November 13, the City Council approved Mayor Daley's $5.94 billion 2008 City budget, which
includes $270 million in additional spending over the 2007 budget. The Mayor initially sought a
$108 million increase in the property tax, which was reduced to $83 million in the final budget.
New taxes and fees include a $0.05 per bottle tax on bottled water, a planned development review
fee and a water certificate of payment fee. The budget also contains a host of tax and fee increases,
including the personal property lease tax, the liquor tax, water and sewer fees, sign permit fees
and the 911 surcharge.
Less than a week before the full City Council was scheduled to vote on the final budget, 22 aldermen
co-sponsored a new ordinance that would create a downtown special assessment on commercial spaces,
which was subsequently discussed as a commercial lease tax. Initially, the new special assessment
would have imposed a $0.40 per square foot tax on residential and commercial spaces over 5,000 square
feet located in a loosely defined central business district. The proposal was amended to exempt
residential space but raised the tax to $0.50 per square foot. Fortunately, this ordinance was tabled
and is dead for the time being. But the Chamber will continue to monitor this proposal and fight to
defeat any attempt to pass a commercial lease tax.
The City Council approved the budget by a vote of 37-13. The $83 million property tax increase was
approved by a vote of 29-21 and the other revenue measures were approved by a vote of 40-10.
Below is a summary of the new and increased taxes and fees that were approved.
| Tax/Fee |
Current Rate |
New Rate |
| Natural Gas Use Tax |
5.2 cents per therm |
6.3 cents per therm |
| Personal Property Lease Tax |
6% |
8% |
| Hotel Tax |
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Expanded to include on-line sales |
| Water Rates |
Vary depending on lot frontage |
15% increase per year each of the next three years |
| Sewer Surcharge |
83% of water rate |
84% ('08), 85% ('09) 86% ('10) |
| Sign Permit Fee |
$75 |
$200 (on-premise)
$500 (off-premise) |
| Planned Development Filing Fee |
$1,000 | $250 per net developable acre or $500, whichever is greater |
$1,500 |
| Planned Development Review Fee |
None |
$0.25 per square foot buildable floor area |
| Water Certificate of Payment |
None |
$50 per certificate and expanded to include condominium owners |
| Property Transfer Declaration |
$90 per transaction |
$120 per transaction |
| 911 Surcharge |
$1.25 per month |
$2.50 per month |
| Amusement Tax |
|
Expanded to include ticket resellers |
| Beer |
$0.16 per gallon |
$0.29 per gallon |
| Liquor (14% or less alcohol) |
$0.246 per gallon |
$0.36 per gallon |
| Liquor (over 14%, less than 20% alcohol) |
$0.615 per gallon |
$0.89 per gallon |
| Liquor (20% or more alcohol) |
$1.845 |
$2.68 per gallon |
| Bottled Water |
None |
$0.05 per bottle |
| Vehicle Stickers (large passenger autos) |
$90 per year |
$120 per year |
| Vehicle Stickers (trucks, RV's 16,000 lbs or less) |
$200 per year |
$180 per year |
| Vehicle Stickers (trucks, RV's over 16,000 lbs) |
$200 - $300 per year |
$420 per year |
| Vehicle Stickers (manufacturers & dealers) |
$55 per year |
$90 per year |
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