Local News

Cook County Sales Tax Hike Takes Effect Tuesday

CHICAGO (CBS) ― Chicago's sales tax jumps Tuesday to 10.25 percent, due in large part to Cook County's 1 percent tax increase. It's one of the highest tax rates in the country, even higher than New York and Los Angeles.

But you don't have to go too far to find lower taxes. They're just 7 percent in Lake and Will counties, and 7.25 percent in DuPage County.

"You know we're going to have a new tax increase tomorrow so we're going to have to have new figures in the system," said Gregg Schwartz of Trage Brothers Appliances and Electronics.

Schwartz isn't sure how Cook County's new tax increase will affect his Forest Park business, but he knows he's not happy about it.

"It concerns everybody," Schwartz said. "I'm not only a businessman, but I'm also a consumer so I have to spend money too. So I'll have less to spend and so will my customers."

"I think it's disappointing. Revenue is not reform. We need to actually look at what we're spending before we just decide to tax people more," Schwartz said.

The Civic Federation's Laurence Msall couldn't agree more.

"This was a sales tax that was unnecessary in order to balance the budget," Msall said. "It's a sales tax that [Cook County Board] President Stroger himself admitted is larger than what even would be needed by their budget estimates. So we think it is very unfortunate. We call on the County Board to reverse their decision.

"I think that a lot of people that would shop in the city are probably going to look out in the suburban area to find some additional purchasing capabilities at a lower price," Schwartz said.

And that is already happening at DuPage County gas stations, where they advertise that customers pay no Cook County taxes.

Victor Zamudio lives in the city but CBS 2 caught up with him in DuPage County.

"Trying to find cheaper gas prices somewhere… got to look around a little bit," Zamundio said.

Dashaun Holmes lives in Cook County but drives to DuPage County for gas and cigarettes.

"I try to look for the best prices so I come up here all the time," he said.

Gas station manager Gary Redderoth says they're not alone.

"I would say we get at least half our customers are from Cook County buying cigarettes and gas," he said.

Cook County business owners, though, are concerned about losing money. Board President Todd Stroger says he raised the tax to ensure county services wouldn't be cut. But Msall says Stroger could have trimmed the county payroll and eliminated government waste before forcing taxpayers to bear this burden.

"County government is an organization that not only doesn't think it needs to tighten its belt during tight economic times, it's a government that doesn't think it needs to wear a belt," Msall said.

Many taxpayers say enough is enough.

"That's too much. What they want us to do? Taxes are too high already!" said Chicago resident Darryl Woods.

"I would believe that we really need answers. Where is this tax money going?" said Cook County resident Barbara Fritz.

Several Cook County commissioners voted against the sales tax increase. One of them, Tony Peraica, and other officials are holding a 12:30 p.m. protest Tuesday outside the Thompson Center.

The tax is estimated to bring in more than $440 million in new revenue. Currently the city is tied with Memphis for the highest sales tax, but that changes Tuesday.

Two percent of that tax comes in the form of county sales taxes. Five percent goes to pay your state tax.

CBS 2's Dana Kozlov and Mike Puccinelli contributed to this report.

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