Chicago Mayor Abandons Proposed Property Tax Hike

Chicago Mayor Brandon Johnson made you look. He walked back his proposed $300 million property tax increase Tuesday, claiming he was never committed to it.

Johnson implied that his proposed tax hike was a tactic to increase engagement among aldermen and to draw attention to the city’s $982 million budget deficit, a shortfall he hopes can be addressed through a garbage-collection fee increase, hiking other taxes and using federal funds meant for pandemic relief, the Chicago Tribune reported. The mayor abandoned his tax-hike proposal after a City Council meeting was scheduled in which aldermen were likely to vote it down.

“I’ll say it like this … sometimes we do things to get people’s attention,” Johnson said. “And so now that we have the attention of everyone, I’ve said from the very beginning, this is a proposal. I’m a collaborative mayor. For the first time in the history of Chicago, you’re actually seeing that type of collaborative approach.”

Among the alternatives now on the table is an increase in Chicago’s garbage collection fee, which has remained at $9.50 per month since 2016. Doubling it could generate $68.5 million annually, according to the administration.

Additionally, Johnson’s team is evaluating an increase in the personal property lease tax, which is levied on car or equipment leases as well as digital leases of cloud services or software. An increase from 9 percent to match Chicago’s 10.25 percent sales tax rate could bring in nearly $96 million annually.

The budget team suggested increasing its amusement tax on streaming services, also from 9 percent to 10.25 percent, and the potential redirection of up to $280 million in unused American Rescue Plan Act funds, though the latter is seen as a temporary solution that does not address the city’s structural deficit.

Alderman Anthony Beale, who organized the council’s resistance to the tax hike, called Johnson’s pivot a “retreat” and demanded further cost-cutting measures. “They don’t want to belt-tighten,” Beale said, alleging that the administration has been unwilling to “trim the fat” and “just wants to keep spending.”

Alderman Maria Hadden of the Progressive Caucus described Johnson’s approach as a collaborative step forward. Hadden expressed “cautious optimism” about the direction of budget talks, commending both aldermen and the mayor’s staff for proposing viable alternatives.

Johnson intends to avoid workforce reductions, stating that the administration is “committed to a balanced budget that holds the values,” with an emphasis on protecting essential investments and avoiding regressive taxes that would impact working families disproportionately, Senior adviser Jason Lee said.

— Andrew Terrell