Chicago bars and restaurants are getting more expensive in 2020. Mayor Lori Lightfoot’s 2020 budget for Chicago was just approved by aldermen, which included a doubling of tax on food and drinks. A quarter-percentage-point raise in taxes will go into effect on January 1, 2020, in Chicago.
Tax on drinks and food at Chicago establishments will rise from its already high 0.25% tax to 0.5% in the new year, keeping Chicago one of the most expensive cities to enjoy.
The reason behind the increases in tax for food in Chicago comes as no surprise: Lightfoot expects the new tax will bring in around $20 million a year to combat the massive $838 million deficit in the 2020 Chicago budget. City officials put it in perspective for the layman: the new bar and restaurant tax in Chicago will add roughly an extra 25 cents to a $100 restaurant tab.
Illinois income tax remains a steady 4.95% in 2020, but other industries will see a slight hike. We already saw hints of a parking tax in the works back in July, but now it’s pretty much set in stone. The state’s first tax on parking is set at 6% of the price of hourly, daily or weekly parking and 9% for any monthly or annual rented parking space.
Anyone who owns a vehicle is also seeing a registration increase to $50 in 2020, meaning it will cost $148 for a license plate sticker. Electric vehicle owners aren’t catching a break either: you’ll be charged an extra $100 in lieu of motor fuel tax payments.
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