Chicago Sun-Times

Amusement-tax hike off table

Mayor still could target cigarettes

- BY FRAN SPIELMAN City Hall Reporter fspielman@suntimes.com

Mayor Rahm Emanuel on Tuesday ruled out raising the city’s amusement tax, but kept alive a cigarette tax hike provided the money is spent on improving children’s health.

The Chicago Sun-Times reported last week that Emanuel was considerin­g a 1-percentage-point increase in the amusement tax — to 10 percent — that would have left Chicago with the highest ticket tax in the nation.

On Tuesday, Emanuel took the amusement tax increase off the table and added it to the list of local taxes he has promised not to raise.

It happened when the mayor was asked whether he’s concerned that yet another increase in the cigarette tax would prompt even more smokers to drive across state lines to purchase cartons of cigarettes at a cheaper price.

“Well, first of all I haven’t made a decision on that, but I can say this: There’ll be no property tax increase. There’ll be no sales tax increase. There’ll be no fuel tax increase. We’re eliminatin­g the per-employee head tax, which was a job-killer. We’re doing it ahead of schedule. And there will be no amusement tax increase,” the mayor said.

“If we do consider [raising] the cigarette tax, it has to invest in children’s health.”

The mayor’s spokeswoma­n Sarah Hamilton later disclosed that Emanuel has also ruled out a fee for garbage collection that would have mirrored the fees imposed in many suburbs.

Chicago’s per-pack cigarette tax was increased by 32 cents in 2005 and by 20 cents in 2006. That raised the city’s tax to a whopping 68 cents.

At $4.67-a-pack, Chicago now has the nation’s second-highest combined state and local tax rate on cigarettes. New York City tops the list at $5.85-a-pack.

Chicago’s two-tiered amusement tax was last increased in 2009 — from 4 to 5 percent for mid-sized venues and from 8 to 9 percent for large sporting events. The lower tax rate applies to live theatrical, musical and cultural performanc­es in venues with more than 750 seats. Smaller theaters are exempt.

Until an ill-timed controvers­y over the conservati­ve politics of Joe Ricketts, patriarch of the billionair­e family that owns the Cubs, team owner Tom Ricketts was still hoping to use 35 years’ worth of amusement tax growth to help finance a $300 million renovation of Wrigley Field.

Emanuel was prepared to sign off on that plan, a $150 million variation of a financing scheme he once called a “non-starter.” The other $150 million would have come from relaxing Wrigley’s landmark status to allow the Cubs to wring more advertisin­g and sponsorshi­p revenue out of the stadium.

Any increase in the amusement tax would have increased the city’s $88.2 million-a-year take and reduced the number of years the Cubs would need to siphon growth to renovate Wrigley.

But it would also have encountere­d strong opposition from live theaters, movie theaters and from Chicago’s five profession­al sports franchises: the Cubs, Sox, Bears, Bulls and Blackhawks.

City Hall announced last week that a 2013 budget shortfall pegged at $369 million just two months ago has been reduced to $298 million, thanks to rising revenues and greater than anticipate­d savings from the mayor’s “wellness” plan to curb skyrocketi­ng health-care costs.

That allowed Emanuel to move up by six months his plan to eliminate the head tax.

The mayor is also planning “targeted layoffs” and more “managed competitio­n” between city employees and private contractor­s, including vehicle booting.

Police and fire cuts that could be substantia­l must await the outcome of contract talks with those unions. That will force Emanuel to include a placeholde­r pay raise for police officers, firefighte­rs and paramedics that may or may not be big enough.

 ??  ?? Mayor Rahm Emanuel visits the Peggy Notebaert Museum for remarks Tuesday. | AL PODGORSKI~SUN-TIMES
Mayor Rahm Emanuel visits the Peggy Notebaert Museum for remarks Tuesday. | AL PODGORSKI~SUN-TIMES

Newspapers in English

Newspapers from United States