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 Chicago is notorious for jammed rush hour expressways and
expensive parking garages. When the calendar flips to 2020, suburban commuters
will pay more for those garages, but the money will not help those congested
roads.
A typical Chicago commuter will pay $286 more annually at parking garages as a
result of Gov. J.B. Pritzker’s record $40 billion budget and $45 billion capital
plan. The parking tax increase is one of 20 new taxes and fees Illinoisans have
to endure as a result. The infrastructure plan has been clouded by at least $1.4
billion in wasteful spending and corruption schemes, while the budget may be at
least $1.3 billion in the red.
The parking tax increase is projected to generate $60 million in revenue.
However, the funds will not be used for roads, but rather for vertical
infrastructure such a new buildings and renovations. Those projects are where
lawmakers packed lots of pork projects such as pickleball courts, dog parks and
renovations to a privately-owned theater.
The rate for a monthly lot will be taxed at 9%. The new tax calls for taxes on
lots charging three or more cars to park. The policy has not been approved by
the Illinois Department of Revenue, but it can still take effect while it awaits
their blessing.
Some parking lots will be exempt from the tax. Government-owned lots, Chicago’s
many metered lots and street parking, as well as some private lots such as
employee parking at hospitals will not be subject to taxation.
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The extra $286 for Chicago garage parking is a
fraction of the extra $1,700 suburban families could begin paying
next year from a gas tax increase, higher vehicle registration fees
and trade-in taxes on cars.
A $286 annual parking cost increase would wipe away
any potential savings from Pritzker’s “fair tax.” Pritzker has
promised middle-class families could save $195 annually from a “fair
tax.” Even if that were to occur, the new parking tax would more
than eat the savings.
Nearly half of voters polled saw the progressive tax as a “blank
check” for lawmakers to continue spending. While the tax is being
pushed as a way to curb property taxes, it is more likely to become
another broken promise by Illinois politicians who keep using new
revenue for new spending rather than to repair old problems as
promised.
On Nov. 3, 2020, Illinois voters will have an opportunity to decide
whether they want to give up their constitutionally protected flat
tax protections and allow lawmakers greater power to set income tax
rates. Chicago commuters are about to gain $286 worth of reasons not
to giving them that authority.
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