This week Chicago Mayor Brandon Johnson announced his proposal to raise the Personal Property Lease Tax once again from 15% to 20% beginning Jan. 1, 2027. The CATA already sent a letter, on Chicago dealers’ behalf, to city officials and aldermen, but also wanted to share a version with dealer members so they may send a personalized letter in addition.

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Hello,

I am writing to express serious concern regarding the repeated increases to the City of Chicago’s Personal Property Lease Tax. Specifically, I have major concerns surrounding the impact these increases are having on businesses, events and customers who operate within the city.

For many years, the Personal Property Lease Tax remained stable at 9%. On January 1, 2025, the tax was increased to 11%. On January 1, 2026, the rate was raised by another 4% to a total of 15%. Just this week, Mayor Johnson is proposing to raise it significantly again by another 5%, from 15% to 20% beginning Jan. 1, 2027.

The tax creates competitive concerns for dealerships. Higher lease costs may discourage Chicago residents from leasing vehicles or push them toward alternative financing arrangements, potentially affecting dealership leasing activity.

While these tax increases may temporarily help address budget shortfalls, the long-term impact could be a reduction in overall economic activity. If attendance declines, the city risks losing not only lease tax revenue, but also other taxes tied to events, such as the city’s amusement tax.

We respectfully urge city leadership to carefully reconsider the current structure and repeated increases of the Personal Property Lease Tax. We hope that instead you work with the business and event communities to find solutions that support both the city’s fiscal needs and Chicago’s competitiveness as a place to do business and host world-class events.

Thank you for your time and consideration.

Sincerely,

[DEALER NAME]