Aldermanic Group Proposes Rebate Plan to help Residents with Big Tax Hike Plan
Hoping to give Chicagoans relief from Mayor Rahm Emanuel’s proposed tax hike, a group of aldermen last week introduced a rebate plan.
The proposed rebate ordinance for low-income home homeowners was sponsored by Ald. Carlos Ramirez¬Rosa (35th Ward), Ald. John Arena (45thWard) and Scott Waguespak, 32nd Ward.
The proposal was first discussed by the City Council Progressive Reform Caucus.
“It’s clear that there’s strong support in the City Council for a property tax rebate for working families,” Ramirez-Rosa said. “This ordinance would create urgently needed relief from this increase by reducing the burden on homeowners.”
In the plan, a Chicago household with an adjusted gross income of less than 400 percent of the federal poverty level would be eligible for a rebate. A family of four could earn up to $97,000 to be eligible for the program.
That same family would get a $400 rebate for a home valued at $250,000.
At the same time, Ald. Leslie Hairston, (5th Ward), a caucus member, acknowledged that, “it is no secret the city is facing serious budget gaps, and we need to get real about raising revenue to make sure Chicago continues to be a great place to live, work and play.”
Emanuel’s proposal calls for a $588 million property tax increase over the next four years in his 2016 – the biggest tax hike in the city’s modern history.
The proposed 13 percent tax levy hike would pay for police and fire pensions and school construction.
The tax hike would cost the owner of a $250,000 home about $588 yearly. The increase would be phased in over the next four years.
Under the plan, Emanuel also is calling for a hike for a variety of fees, including a monthly garbage collection fee of $9.50 per household.
The biggest portion of the tax increase would apply for this year, while the remainder would be from 2016 through 2018.
At the same time, Emanuel wants to provide his own form of relief.
The mayor hopes to get support for an expansion of state exemptions so owners of homes worth $250,000 or less would not see a property tax hike. Emanuel also wants some property tax relief for a home that costs more than $250,000. But all the exemptions might prove difficult because Ill. Gov. Bruce Rauner would have to green light the plan.
“I know this budget is tough and therefore carries political risk,” Emanuel said last week. “But there is a choice to be made: either we muster the political courage to deal with this mounting challenge or we repeat the same practices and allow the financial challenges to grow.”
The 11-member Progressive Caucus issued an extensive list of recommendations to raise needed funds for City coffers last July.
Aside from Hairston, Ramirez-Rosa, Arena, and Waguespack, the caucus includes, Ald. Roderick Sawyer (6th Ward), Ald. Susan Sadlowski Garza (10thWard), Ald. Toni Foulkes (16h Ward), Ald. David Moore (17th Ward), Ald. Ricardo Munoz (22nd Ward), Ald. Chris Taliaferro (29th Ward), Ald. Scott Waguespack (32th Ward), and Ald. Nick Sposato (38th Ward.
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