Mayor Lori Lightfoot’s promise two years ago to tie property taxes to inflation, after the local rate hovered around 3 percent, could almost quadruple payments next year.
The total could rise to $85.5 million if she decides to collect the full amount owed under her annual tax formula, the Chicago Tribune reported, citing its own analysis. While the city’s inflation rate increased to 7 percent in the year through December 2021, Lightfoot’s plan caps at 5 percent.
That’s left some locals worried. Michael Nahabedian, who leases space for his restaurant Brindille, said he’s concerned about the potential “trickle-down” effect of tax hikes on the city as a whole.
“We worry about whether the staff will be able to afford to live nearby, we worry about the costs for people who are thinking about coming to the restaurant to eat,” Nahabedian told the outlet. “We worry about the next lease. And we want to see something from the city for these rising costs.”
Northwest Side landlord Saima Causevic told the Tribune that tenants will be the ones most hit by the increase. “We will pass the cost on to tenants, because we have to, but they can’t afford to pay more,” she told the publication. “They just can’t.”
The Lightfoot administration will begin its 2023 budget process with three public forums beginning Thursday. Her decision to collect all, some or none of the taxes owed under her plan will likely come up during the meetings.
Since the inflationary tax trigger was made an automatic part of each budget, aldermen won’t have to approve the specific increase. However, they do still need to OK the full city budget, which will include the tax increase.
Wrigleyville Alderman Tom Tunney told the outlet Lightfoot will have a hard time getting a majority to support a tax increase that high.
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