Chicago City Wire

The City Council of Chicago has passed a new budget that will have Chicago drivers paying 3 cents more at the pump.  

The increase comes from a larger tax hike that passed in a 28-22 vote, in which the increases seek to address the city’s financial deficit. 

Beginning on Jan. 1, the new tax increase will raise the local tax for Chicago to 8 cents. The new money generated from the increase will provide approximately $10 million in revenue, according to Chicago's Mayor Lori Lightfoot’s (D) office. This is the third tax hike on gas for Chicago drivers within the past two years. 

Gas prices will increase by 3 cents in Chicago | Stock Photo

The state of Illinois tax alone has doubled from 19 cents to 38 in July of 2019, and increased again in July 2020 automatically in response to annual inflation. This third increase is a result of legislation signed into law by Illinois Gov. J.B. Pritzker (D), which gave certain counties in Illinois an opportunity to independently raise their local taxes. 

Along with Chicago, DuPage County will also be raising their gas tax by 4 cents per gallon starting in 2021. 

Along with their gas, Chicagoans will be paying more in property taxes next year as well. The $93.9 million plan for property taxes will cost approximately $56 per home each year valued at $250,000.  

Another topic of large public contention within the annual budget proposal is the allocation of funding for police. In light of protests and calls to invest funding into alternatives to policing (such as social services and mental health programs), 

“I have been very clear that I do not support defunding police. I also reject the false narrative that it's either fund the police or fund the community," Mayor Lightfoot said.

As COVID-19 has created significant economic strain, Mayor Lightfoot has attributed 65% of the deficit to coronavirus and its shutdowns. Legislators hope that with these increases, Chicago can begin to work towards a balanced budget once again.