Summary

of Proposed Revenue Ordinance

Ordinance Article
House Number and Street/Alley Vacation Fees

Article I

Article III, Section 3

Proposed Rate
$50 House Number, $1025 Alley Vacation
$5 House Number, $50 Street/Alley Vacation Fees
Fees

Projected New Revenue

N/A

3-50 (new)

N/A

$.07 per bag with $.05 remitted to the

City and $.02 retained by the retailer

$9.2M (City portion)

3-4-100
3-4-120

N/A

N/A

N/A

The City's Uniform Revenue Procedures Code (URPO) contains rules for allocating tax payments and for limiting the periods that the Department of Finance can issue tax assessments. The proposed ordinance includes the
following amendments to URPO:
(1) Authorizes the allocation of any tax overpayments to the earliest period of underpayment starting with interest, then the tax and finally, any penalties. Current rules only provide for allocation of payments to current taxes,
allowing a taxpayer to avoid the carryback of the overpayment for which there are underpayments, thereby creating a refund for the taxpayer.
(2) Clarifies that the Department of Finance may extend the four year assessment or audit period for an additional two years for any taxpayer that paid less than 75 percent of taxes owed.
Amusement Tax -- Tour Boat Operator Tax

Article III, Section 2

Current Rate

Implements a 7 cent tax on disposable paper and plastic bags. The retailer will keep 2 cents and the remaining 5 cents will be remitted to the City. The proposed ordinance includes a number of exemptions including: bags
customers bring to a store, disposable bags provided by dine-in or take-out restaurants, paper and plastic bags used for package of loose bulk items, bags for prescriptions, dry cleaning bags, bags sold in packages containing
multiple bags intended for use as garbage bags, pet waste bags or yard waste, and other uses. The proposal also repeals the current plastic ban.
Clarification of Credits and Refunds and Statute of
Limitations for City Tax Procedures

Article III, Section 1

MCC
2-12--080

Amends the fee and clarifies requirements for obtaining a house, property, or address number from CDOT. Specifically, the proposed ordinance:
(1) Increases the fee for establishing a new official address number for property in Chicago from $5 to $50. The increase aligns the fee with CDOT's cost of processing the application. Additionally, the proposal clarifies that the
fee will be assessed on each main door entrance for a residence or property.
(2) Increases the fee for vacating the public way (streets and/alleys) from $50 to $1,025 and requires applicants to pay for any third party costs associated with vacating the public way incurred by CDOT, including survey work,
real estate appraisals, utility work, piping work and wiring work. Current practice and policy requires that applicants pay all third party costs, the proposal codifies this existing requirement.
(3) Requires the applicant to pay fair market value, which is current practice, for the vacated public way unless City Council adopts an ordinance which vacates the property at less than market value.
Chicago Checkout Bag Tax

Article II

2017 Budget Recommendation, City of Chicago

9%

3-92-010

No Change

N/A

Clarifies that the nine percent amusement tax applies to tour boat operators. Most operators currently remit the amusement tax on the sale of tickets or services provided by the tour boat operator. Code changes clarifies that
all tour boat operators are obligated to pay amusement tax.
Lease Tax -- Exemption for Annual Bike Share
3-32-020
Memberships
Provides a lease tax exemption for Divvy's annual bike share memberships.

9%

Page 1 of 4

0%

N/A

Draft-For Internal Review Only

Summary of Proposed Revenue Ordinance

Ground Transportation Tax -- Suburban Taxi, Limo and

Bus Companies

2017 Budget Recommendation, City of Chicago

$3.50 daily rate for vehicles with a capacity of 10
or fewer people, $6 daily rate for vehicles with a
capacity between 11 and 24 people, $9 for all
vehicles with a capacity over 25 people

3-46-040

Article III, Section 4

No Change

$1M

Requires suburban taxi, limo and bus companies picking up and dropping off at O'Hare and Midway Airports to pay the daily ground transportation tax rate at their first trip to the airport. This will be effective April 1, 2017.

Amusement Tax -- Ticket Resale

4-156-020, 4-156-030

Article III, Section 5

5% or 9% depending on amusement type applied

only to ticket mark-up value

3.5% applied to full value of the ticket

N/A

Changes the application of the amusement tax for ticket resales from applying the 5 percent and 9 percent tax only on the mark-up to 3.5 percent applied to the full value of the ticket.
Garage Parking Tax -- Eliminate Minimum Charge
Exemption
Article III, Section 6

4-236-020

N/A

22% weekdays, 20% weekends

$800,000

Eliminates the minimum threshold exemption for the Garage Parking Tax, applying the tax rate to all garage and lot charges, regardless of amount. Currently, garage fees at or below $2 for 24 hours or less, $10 for weekly, and
$40 for monthly are exempt from the Garage Parking Tax. The proposed ordinance maintains an exemption for government entities, including CTA parking lots, Park District lots, and the Juvenile Court House.

Commercial User Paid Loading Zones

9-64-165, 9-64-166, 9-64-190, 9-64-200, 964-205, 9-64-206, 9-100-020

$500 for first 20 feet in Central Business District

and $110 for 20 feet outside CBD; $50 for each
additional foot

$14 per hour

$13.8M

Article IV
Authorizes a pilot program to convert current business-paid loading zones to user-paid loading zones. The user-paid loading zone rate will be $14 per hour. The proposed ordinance does not impact loading zones or standing
zones adjacent to medical centers, private residences, day care centers, government buildings, churches, hotels, and schools. The ordinance increases fines for parking violations only within the pilot commercial loading zones
to $140.

Special Event Congestion Parking Rates

Article V, Section 1

9-64-205

$2 per hour

$4 per hour during special events, $2 per

hour all other times

$2.4M

Implement special event pricing of $4 per hour at approximately 820 parking meters around the area of Wrigley Field and approximately 670 parking meters around Soldier Field. The special event pricing would begin two
hours prior to the start of a scheduled special event (football and baseball games, concerts, etc.) and extend for seven hours. The regular meter rate of $2 per hour will continue to apply during all non-special event times.
(1) The meters impacted in the Wrigley Field area are bounded on the north side by West Irving Park Road, the west side by Ashland Avenue, the south side by Belmont Avenue, and the east side by North Broadway.
(2) The meters impact in the Soldier Field area are bounded on the north side by Roosevelt Road, on the west side by State Street, on the south side by Cermak Road, and on the east side by Lake Shore Drive.

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Draft-For Internal Review Only