Chicago aldermen pass revenue package, business groups express concern

By Jim Talamonti | The Center Square
The Center Square

(The Center Square) – Chicago aldermen have approved a revenue package that does not include Mayor Brandon Johnson’s corporate head tax, but business advocates are expressing concerns about the measure’s taxes and fees.

The city council passed the revenue ordinance Friday by a vote of 29 to 19. The measure includes higher taxes on alcohol sales and higher fees on rideshares and plastic bags.

It also aims to generate revenue through video gaming licenses, selling city debt and advertising.

Meetings are scheduled Saturday for the budget committee and the full council. A budget containing the revenue package passed Friday would need 34 votes in the council to override a potential mayoral veto.

When asked after Friday’s meeting if he planned to veto the measure, Johnson said the competing budget packages are “98.4% similar,” but he expressed concerns about the remaining 1.6%.

“There’s an attempt to sell off debt, to send debt collectors after people,” Johnson said.

The mayor said the process is not over and negotiations were “still prevalent.” When pressed, the mayor said a potential veto decision had “not yet been made.”

Also Friday, Johnson introduced his administration’s updated budget proposal, including his $33-per-worker monthly head tax on businesses with more than 500 employees. The mayor said he would continue to fight “for working people.”

Business groups released statements saying they appreciated council members standing against Johnson’s head tax, but the groups also expressed concerns about the revenue package passed Friday.

Illinois Hotel & Lodging Association President Michael Jacobson said businesses were again being asked to bear the brunt of the city’s fiscal mismanagement.

“Hotels continue to face rising costs and economic uncertainty, and the new taxes and fees included in this budget will make it harder to grow, create jobs, invest in employees, and remain competitive,” Jacobson said.

Illinois Retail Merchants Association President and CEO Rob Karr said the council’s revenue package is an improvement from earlier proposals, but he said retailers and other job creators are again being asked to shoulder an “overwhelming” share of the financial burden.

“These added taxes and fees come atop existing pressures, including some of the nation’s highest commercial property tax rates, costly regulations, inflationary concerns and persistent retail crime that puts employees and customers at risk,” IRMA Rob Karr

The Illinois Manufacturers’ Association and the Chicagoland Chamber of Commerce also expressed appreciation for the council’s opposition to the head tax and concerns about the plan passed Friday.