Slew of tax, fee, fine hikes across the city
GOING UP | City taxes and fees on everything from booze to museum admissions have soared since '04 The slew of tax, fee and fine hikes in the city over the last five years is enough to drive one to drink -- but not too much.
State and city taxes on spirits went up a total of 83 percent since 2004 -- adding more than a dollar to the cost of a fifth of vodka.
The higher costs make it hard to wind down with a cocktail after work, some say.
"It's called a pub ... it's where people go to socialize to get over their worries and woes, and now it's got to the point where some people can't even do that," lamented David Horn, 36, who was at Brehon Pub in River North on Friday night.
Liquor isn't the only commodity taxed at higher rates from five years ago. In that time, various local governments have imposed a variety of higher taxes, fees and fines, with many increases topping 100 percent, a Chicago Sun-Times review found.
Moreover, most of the increases far outpaced the rate of inflation over the same period: 14.4 percent.
For most, there's no way to dodge these extra expenses. Stop driving to avoid the parking tax and meter hikes? You'll still have to pay more to ride the bus or L.
The sales tax for Chicagoans on everything but groceries went up by more than 17 percent, to 10.25 percent.
If you talk on the your cell phone or your home telephone, or if you heat your home with gas, the fine print on your bill will show triple-digit percentage increases in taxes paid to the City of Chicago.
Try to sell your home, and you'll find the real estate transfer tax has climbed 40 percent since five years ago.
Base admission to museums such as the Art Institute, which are supported by Chicago Park District tax dollars, have gone up 50 percent in some cases. Other museums tack on high fees to see special exhibitions that are a permanent part of the institutions.
Next year, the cost of renewing a vehicle license plate will rise $21, to $99, a 27 percent increase. The top parking meter rate will jump to $4.25 an hour, up from $3.50.
As far as alcohol, it's not just hard-liquor taxes that have spiked. Wine taxes went up nearly as much. Beer drinkers got a "break'' -- total city and state taxes went up only 51 percent.
Why the hikes?
Few politicians want to go on record arguing for higher taxes, but it's no secret that city, county and state officials are under pressure to raise money because when people spend less during a poor economy, tax receipts as a whole decline, even with higher rates.
In 2007, Mayor Daley said the city was boosting a host of taxes and fees -- including property, liquor, water and telephone -- to help the city move forward.
"You have to make a decision,'' the mayor said at the time. "If you want to move the city forward, you do it. If you don't, you stand still. Other cities have cut basic services back. Other cities stood still, and look what happened to them. ... This city is not going to stand still."
But Horn says he hasn't gotten much from the higher taxes.
"I'm not a very political person, although I know I don't benefit from paying any taxes," Horn says.
Jerry Roper, president and CEO of the Chicagoland Chamber of Commerce, said he doubts the hikes will completely cease until the economic picture improves.
"I don't see it ending for another three or four years, until the economy turns around. With government continuing to spend more than it takes in and not being able to reduce its payroll, it will continue to rely on these taxes and user fees."
Roper said many of the taxes hurt businesses by driving customers to other jurisdictions where taxes are lower:
"At some point it becomes counterproductive."
Still, not every cost has gone up. City vehicle stickers and parking permits have not increased in price, nor have city, county or state gasoline taxes.
And just last week, the Cook County Board voted to override board President Todd Stroger's veto of a half percentage-point cut in the county sales tax, though it took a special state law to allow the override to happen. Come July, if no new sales taxes are imposed, the retail rate will go down to 9.75 percent.
And the mayor's 2010 budget, approved by the City Council last week, included no hikes in city taxes or fines.
"I don't feel right asking [residents] to pay for more city government right now,'' the mayor said before he announced his budget in October.
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