Chicago Mayor Lori Lightfoot’s resolution to tie annual property tax will increase to inflation might doubtlessly have a big impact on the payments that taxpayers will obtain in coming months, however she says that there are discussions underway to “put some guardrails” on the method shifting ahead.
Lightfoot was requested in regards to the plan on Monday after experiences identified that Chicago property house owners might see a 5% enhance of their property tax payments with out metropolis motion.
“We’ve began a dialogue internally with our finance workforce, which we are going to current a plan as a part of our funds to ensure that there isn’t a big burden on taxes for our taxpayers,” she mentioned.
Early in Lightfoot’s time period as mayor, her administration proposed tying the rise of property taxes to the Client Value Index, a transfer Lightfoot mentioned can be preferable to the earlier timing of will increase, which she argued had largely been political in nature, avoiding massive upswings within the months instantly following an election.
The rise went into impact with the 2021 metropolis funds, and have become automated in 2022.
Whereas the rise in taxes is capped at 5% yearly, the CPI has soared by greater than 9% due to explosive inflation in the US’ economic system. That 9.1% enhance within the CPI is the most important in a one-year span since Nov. 1981, in accordance with the U.S. Bureau of Labor.
When requested whether or not she regretted the choice to tie property taxes to the CPI, Lightfoot mentioned that it was unattainable to foretell the kind of inflation that the U.S. is at the moment seeing.
“(Like with) anything I do, I don’t have any regrets, however clearly no person anticipated that the CPI was going to blow up prefer it has this 12 months,” she mentioned. “No person might have anticipated what the results of inflation that we’re seeing right here this 12 months.”
Lightfoot mentioned that her administration plans to debate totally different methods with members of the Metropolis Council whereas funds negotiations proceed.
“We’ll ensure that we take the required steps to place some guardrails across the CPI going into subsequent 12 months’s funds,” she mentioned.
In line with an evaluation carried out by the Chicago Tribune, a most 5% tax enhance would put a further $85.5 million into metropolis coffers, however it stays unclear whether or not the Metropolis Council will vote to authorize the rise, an vital query with the election looming early in 2023.
Ald. Tom Tunney, who represents Chicago’s 44th Ward, hinted that Lightfoot might have a troublesome time getting help for her funds if she pushes for the total enhance.
“She could have a troublesome time,” he instructed the Tribune. “This was to be the 12 months of the simple funds vote.”