New Taxes Proposed for Cable TV, Recreational Activities in Cook County

Cook County Board President Toni Preckwinkle is proposing extending the 3 percent amusement tax to include cable television and a new tax on liquids used inside of e-cigarettes that would charge 20 cents for every milliliter of liquid sold.
Cook County Board President Toni Preckwinkle is proposing extending the 3 percent amusement tax to include cable television and a new tax on liquids used inside of e-cigarettes that would charge 20 cents for every milliliter of liquid sold.

Area residents could pay more for cable television service and a variety of other recreational activities if a budget proposal by Cook County Board President Toni Preckwinkle is approved.

Preckwinkle announced at a budget meeting last week that she wants to extend the county’s 3 percent amusement tax to include cable television, golf, bowling and secondary sales of sports tickets.

Preckwinkle expects the new tax to bring in an additional $22 million a year. It will be used to help fill a $199 million gap in the county’s $4.5 billion budget.

Preckwinkle also wants a new tax on liquids used inside of e-cigarettes that would charge 20 cents for every milliliter of liquid sold. It could be bring in an estimated $1.5 million a year.

She also announced $108 million in county spending reductions.

“We’ve had no shortage of difficult decisions to make, but this budget will help stabilize our financial position and fiscal structure by tackling our problems head-on,” Preckwinkle said. “Over the last five years, we have solved for more than $1.6 billion in combined budget deficits by encouraging smart spending, modernizing the county and pushing to do more with less.”

A vote on the budget plan is expected in April.

Some officials, however, are concerned that the new taxes might be burdensome for residents.

Jack Segal, a spokesman for cable provider Comcast, also questioned the proposal.

“Comcast appreciates Cook County’s efforts to create a responsible budget, but this increase could make it harder for many Cook County families to gain access to cable TV services,” said Segal in a statement. “This latest tax increase, combined with other recent tax and fee increase on cable TV services, would create an average additional burden of about $100 a year for millions of households in the county. That’s a huge dollar amount for amount for any family to absorb.”

The new tax proposals come after Preckwinkle recently received approval for her controversial penny on the dollar sales tax hike.

In July, the Cook County Board passed a sales tax that increases to 10.25 percent.

That hike is expected to raise about $473 million.

Preckwinkle said the tax hike was needed as the county grapples with a $6.5 billion unfunded pension liability crisis. Most of the proceeds would be placed into the county pension fund, she added.

A smaller portion of the money would be used for infrastructure and roads, as well as paying down debt.

Ironically, Preckwinkle’s tax increase came after she was elected in 2010, on her promise to roll back then Cook County President Todd Stroger’s sale tax increase, which, in terms of percentages, is exactly the same as the percentage increase she got approved in July.

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