Jan 11, 2008 7:29 pm US/Central
What Would A Tax Increase For The CTA Cost You?
CHICAGO (CBS) ―
A tax increase is the idea to pay for mass transit. CBS 2's Dorothy Tucker reports on the breakdown of what it costs you.
Almost everything you buy will cost you a little more if legislators approve the package to fund public transportation in the city and suburbs. Higher sales taxes is how the lawmakers propose to keep buses and trains running. Those who rely on this mode of transportation have mixed feelings about the increase.
"I'm going to wind up paying for it one way or another, right – in either increased fares or taxes," said one person. "So I guess I'm OK with it."
"I think it's awful because the wages are not very high to compliment spending so I think it's unfair and I think they could have found another way and other avenues to compensate," said another.
Whether you like it of not, here's the plan: if you live in the city, you'll see a quarter of a percent increase; in the collar counties, a half percent -- and that applies to everything except food or drugs. So that $500 dollar TV will cost you another $1.25 in the city and $2.50 in the collar counties. But seniors will now ride for free.
The sales tax package is expected be worth $530 million dollars, but all it won't come from store purchases -- most of it will come from an increase in real estate transfer taxes in the city, which means, Chicago homeowners will pay more when they sell their homes. Tax on a $265,000 house is now $1,987, after the proposed increase sellers will pay $2,782.
"Every community in the city of Chicago will feel this," said Brian Bernardoni of the Chicago Association of Realtors. "This will take away from the bottom line for the seller. It will take away equity."
The proposed transfer tax would also apply to commercial property. One note about the sales tax—it does not apply to food or drugs. Of course, the entire package still needs final approval by state lawmakers.
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