Chicago Strikes Again
Starting next year, Chicago will have the highest sales tax in the country, with state, county, and city taxes adding up to 10.25%.
1% amounts to actual money if you’re a Cook County resident who wants to buy, say, a car.
The increase will take effect on January 1, and raises the county’s sales tax levy from 0.75% to 1.75%.
The Driving Force Behind the Tax Hike
It’s Cook County, which includes Chicago, that’s behind the tax hike.
Opposition from Retail Sector
Opposition to the tax increase came from:
- Local retailers
- Area Chamber of Commerce
These representatives argued against the increase, fearing that shoppers will simply travel outside the county to make purchases.
Support from Public Sector Stakeholders
Support for the tax increase came from:
- Pastors
- Health care workers
- County employees
- Union representatives
They emphasized that the revenue is intended to help the county deal with current and future county retiree pension costs.
Contingency Proposal
One commissioner proposed that the tax increase be rescinded if possible changes to county employee pensions go into effect
Frequently Asked Questions
Why is Chicago increasing its sales tax to 10.25%?
Body: The increase is driven by Cook County’s need to generate additional revenue, primarily to help cover the rising costs of retiree pensions for county employees.
When will the new Chicago sales tax take effect?
Body: The new sales tax rate of 10.25% will go into effect on January 1 of next year.
How much is the increase in Cook County’s portion of the sales tax?
Body: Cook County is raising its sales tax levy from 0.75% to 1.75%, which represents a 1% increase.
Who opposed the Chicago sales tax hike and why?
Body: Local retailers and area Chamber of Commerce representatives opposed the tax hike, arguing it could drive shoppers to make purchases outside Cook County to avoid the higher tax.
Who supported the Chicago sales tax increase and what was their reasoning?
Body: Supporters included pastors, health care workers, county employees, and union representatives, who argued that the increased revenue is necessary to fund current and future pension obligations for county retirees.