The 2005 $5.1 billion city budget was passed by the City Council on December 16, 2004. The new budget and revenue package increases the total sales tax in the city by 0.25% to 9% effective July 1, 2005. Also effective July 1, the hotel tax will increase by 0.5% to 3.5%. There are other increases effective January 1, 2005 and include raising tax on cigarettes from 16 cents to 48 cents, wine tax from 4 to 5 cents a bottle, hard liquor tax from 30 to 37 cents a bottle.
Details of the budget and revenue package should soon be available on the City of Chicago’s web site: http://www.cityofchicago.org.