Chicago Area Cook County and DuPage Sales Tax Increase
On April 1, 2008 the sales tax increased 0.25% (1/4%) in Cook County and Chicago, IL. It also increased 0.50% (1/2%) in DuPage County and the other collar counties in Illinois. The retail sales tax in Cook County and Chicago is now 9.25% (although qualifying food and drugs are only taxed at 2.5%) and DuPage County is at 7.25% (although food and drug purchases are taxed at 1.75%). That is interesting, if I just drive to DuPage for groceries I would save .75% on sales taxes. That may not be affordable now with high gas prices, but knowing tax rates (as well as food costs themselves) can help you remember to pick things up when you are passing through areas that are lower taxed than where you live. The difference might be $25-$50 dollars or so in a year, but it’s still money saved.
There was also an increase in the real estate transfer tax in Cook County. This is the impressive work of Todd Stroger, the Cook County Board President who raises taxes at every chance he can get rather than cut back on the inside deals he has for friends working for the government. Plus we are going into a recession where spending is plummeting in all areas and higher sales taxes will make things even less affordable for the general public. The good news is that food is not taxed at the full retail sales tax rate so hopefully this won’t affect people’s ability to still buy groceries.
The sales taxes are slated to help pay for the increase in costs from the CTA, PACE and Metra public transit systems as well as public works projects. I do believe that these public transit services are worth funding, I just wish it didn’t have to increase that often. I don’t think fixing the million pot-holes in our roads is part of this increase but that may cause another budget shortfall since this winter was so bad. Anyway, the only constant is change these days and when it comes to taxes (sales or property) the only change we ever see is them going up.
While I was on the www.revenue.state.il.us site looking up the new tax rates I found some little known taxes listed also. Did you know that Chicago has a soft drink tax of 3%? And we have a Metropolitian Pier and Exhibition Authority tax on Food and Beverage of 1% also? And the sales tax on cars bought in Chicago if you live there is 8.5%. It is only 7.25% if you don’t live in Chicago. Another reason to buy cars out in the suburbs. On a $25,000.00 car that would save you $187.50. Not a huge sum, but it’s still money saved.
If you live in chicago and you purchase a car outside of chicago you will still be charged chicago sales tax!
Its a crime against humanity to tax food. All Chicago residents should take stance at their grocery stores and ban this tax on groceries. Food prices have risen at astronomical rates and taxing food is not the solution. Tax gas guzzler cars that get less than 25 mi/gal and trucks that emit more gases to our environment which affect our overall health and air quality. Leave it to corrupt government of Chicago to tax groceries. Our founders would have been ashamed that we have decided to tax “needed-to-live” necessities.
I’ve said it before & I will say it again. It is the height of irresponsibility of our government to not live within its means. When a person is laid off, or has their hours cut at work, they learn quickly how to live with barely the necessities of life, & become skilled at cutting back that which they can live without. Why our governments feel they are any different is beyond me.
The government spends money like this: In prosperous time, they add programs to their budgets, but rather than take them out when they can’t afford it, they raise our taxes to cover these. These politicians should be fired & voted out of office. It is unforgivable to be taking food.