October 21, 2019

Andrew Campbell 

After Mayor of Chicago Lori Lightfoot just announced a US$40 million tax on rides from Lyft, Uber, and other ride-share companies, she also unveiled a proposed tax hike on meals at restaurants. With Chicago facing a US$838 million budget deficit in 2020, the new budget will be released by Mayor’s office on October 23. It is expected the new restaurant tax would be a 0.25% sales tax increase on all beverages and food sold in Chicago restaurants. Their intended goal is US$20 million.

President of Illinois Restaurant Association, Sam Toia, and President and CEO of Illinois Retail Merchants Association, Robb Karr, were both unhappy over Mayor Lightfoot’s restaurant tax proposal. They have been troubled by a series of recent mandates from the city of Chicago including a higher minimum wage and mandatory sick pay.

Mayor Lightfoot said it would be very difficult to avoid a property tax increase. In addition, she has strongly requested state legislators for a graduated real estate transfer tax and re-opening the casino bill for Chicago.

Earlier in May, Springfield lawmakers had already proposed the hike 1% tax to fund a new $600 million renovations at McCormick Place Convention Center. The sales tax in Chicago is one of the highest in the US at 10.25%. There is a 1% food and beverage tax for the Metropolitan Pier and Exposition Authority at downtown restaurants and the two airports. Once Chicago city aldermen approve Mayor Lightfoot’s proposal, the new restaurant tax will take effect on January 1, 2020.

Photo:Webshot.