Mayor proposes $300 million property tax hike
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Mayor Brandon Johnson is proposing a $300 million property tax increase to help plug the city's nearly $1 billion deficit as part of his 2025 budget address today.
Why it matters: Chicago property taxes already doubled over the last decade, leaving many homeowners, especially in gentrifying areas, frustrated. Some have warned they could lose their homes.
- Johnson vowed not to increase property taxes as a part of his campaign platform in 2023.
What they're saying: "This was a very excruciating process," Johnson said during a media briefing, "but … the alternative, it's just just not acceptable, reducing services and compromising overall safety."
- The mayor's team claims that without the tax hike, the city would have to cut 3,479 staffers, or 17% of the workforce, including 2,473 people in the Chicago Police Department.
By the numbers: In addition to the property tax hike, the mayor proposes gleaning $54.1 million in additional TIF surplus revenue, $139.6 million in funds from the prior year, $14 million through "improved debt collection" and other revenue-generating measures.
- Cuts include $42 million in "personnel savings" from a recent hiring freeze and $247 million in operational efficiencies across departments.
Zoom in: According to estimates from the mayor's office, property owners will see a 4% increase on average, based on 2023 assessed values.
The mayor's office has not provided estimates for how much the $300 million tax hike would cost the average property owner.
Of note: The mayor's team says it's also giving CPS about $311 million in TIF surplus this coming year.
- The proposed budget also relies on CPS to cover the much-debated $175 million in non-teacher pension payments.
The other side: A group of 14 alders on Tuesday sent Johnson a letter calling property tax hikes "a non-starter," while citing a recent citywide poll of 854 people that found "51% of residents trust aldermen more than the mayor" on budget issues.
Flashback: Mayor Rahm Emanuel's $588 million property tax hike, passed in 2015, added an estimated $500 of new taxes to every $250,000 of the property's appraised value.
What's next: The mayor and city council will hold multiple hearings over the next two months to debate, vote and finalize the budget before the Dec. 31 deadline.