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Chicago lease tax climbs to 8%

November 3, 2010
 

Payments on Chicagoans’ lease contracts rose Jan. 1 from 6 percent to 8 percent. The change affects all new leases plus any remaining months of existing leases. But the increase is not retroactive to previous months of existing leases.

The tax increase is part of a number of revenue generators sought in Chicago Mayor Richard Daley’s 2008 budget. So much attention focused on the city’s new 5-cent tax on bottled water that other elements of the budget went unnoticed.

The new 8 percent rate in the personal property lease tax represents a 33 percent jump. Daley originally proposed a 25 percent increase, which would have taken the rate to 7.5 percent.

Chicago aldermen approved the revenue measures in November on a 40-10 vote.

 

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