* Subscribers know more. The Sun-Times…
Lawmakers are still laboring to get a bill on track in Springfield to overhaul and fund the Chicago area’s cash-strapped mass transit agencies as the fall veto session rumbles to a conclusion.
Illinois Democrats leading transit talks floated several potential taxes in a bill filed late Tuesday to generate $1.5 billion to help the CTA, Metra and Pace avoid a $200 million-plus fiscal cliff approaching next year. […]
Lawmakers are largely on the same page as far as transit governance reform under a new, more powerful Northern Illinois Transit Authority, but the new tax proposals face an uncertain fate in the state Senate, where Democrats passed a different proposal earlier this year. The legislative session is scheduled to end Thursday.
“This is the most comprehensive and consequential transit legislation in the history of this country, and we’re gonna be able to do this,” Buckner said.
* Capitol News Illinois…
The largest portion of funding — about $700 million — would come from a 7% statewide tax on entertainment ranging from streaming services to live shows and other ticketed events. […]
The sponsors said a $5 surcharge would also be tacked onto ticket purchases for large events and raise about $125 million. The surcharge would apply statewide but would mostly be paid for by those attending large events like concerts and sporting events in the Chicago area. The charge would allow ticketholders to use their ticket to ride public transportation to and from the event, Delgado said, with the goal being to change people’s travel behavior to large events.
Buckner and Delgado said the measure would also tax billionaires on unrealized gains on investment assets at a 4.95% rate — at the state’s current income tax rate — to generate about $300 million. […]
The existing sales tax imposed by the RTA in Cook County and the collars would increase by 0.25 percentage points to 1.25% in Cook County and 1% in the collars. And another estimated $266 million would come from allowing municipalities to install speed cameras near churches, parks, schools and hospitals. Municipalities would be allowed to keep half of the revenue. […]
Sen. Ram Villivalam, D-Chicago, did not immediately respond to a request for comment about the House’s proposal.
* Crain’s…
It’s unclear if the labor coalition advocating for a transit overhaul is in full support of the package.
Bob Reiter, president of the Chicago Federation of Labor, said his team is still reviewing the bill, which wasn’t posted until late this evening.
Labor previously supported the Senate bill and helped see it approved in that chamber.
Marc Poulos, political director for the International Union of Operating Engineers Local 150, said lawmakers soured on the delivery fee because it’s seen as a “very regressive tax.”
* The Tribune…
Pritzker has said he’d like to see a deal get done, though he’s dodged backing specific revenue proposals he would support to help pay for his desired “world-class transit system for the whole state.”
He did so again at an unrelated news conference Tuesday in Peoria, where he noted House lawmakers have been meeting privately “to determine what it is they could tolerate.”
“Revenue is always hard to raise for anything, even when you know it’s hyper-important, and so they’re still considering what those things are,” Pritzker said. “I’ve tried to be careful about what I’ve told them because I want to make sure that they are considering all the options.”
Discuss.
- Blocked by a train in Franklin Park - Wednesday, Oct 29, 25 @ 8:55 am:
The Food Delivery tax was a great idea. Not a fan of this new funding mechanism. Maybe they could transfer Gas taxes or tolls to transit.
- ChicagoBars - Wednesday, Oct 29, 25 @ 9:07 am:
Hey Blocked by a Train…
“Maybe they could transfer Gas taxes or tolls to transit.” is EXACTLY what the Illinois Senate tried to do in May before road construction trade unions had a conniption fit about that funding proposal late last May.
- Red Ranger - Wednesday, Oct 29, 25 @ 9:08 am:
The ads against JB in the POTUS primaries around the nation are really easy to imagine if something like this passes. No way Team JB lets this slew of taxes see the light of day. When you think of the past two sessions, plus whats likely to occur over next 9 months, so many ads will scream $5 billion (or more) of new taxes under his watch. Bad Presidential politics here by the HDems, which must be everyone’s north star when figuring out how to get out of the messes over the next 7 (or more) months.
- Sue - Wednesday, Oct 29, 25 @ 9:08 am:
These new proposals seem so absurd it feels like they’re trying to get us to be nostalgic for the delivery tax, which at least had some resemblance of a connection to transportation.
Plus, there’s no reporting at all on whether the governance and other provisions are copied over or if there are big changes there, too.
- DS - Wednesday, Oct 29, 25 @ 9:08 am:
Feels like the entertainment tax is a way to avoid being accused of taxing necessities. It’s fine. Better late than never.
- Better Way - Wednesday, Oct 29, 25 @ 9:14 am:
I’m sure electeds in Springfield are worried about the potential backlash from the public about any cuts or impact to transit service, but they are not prepared for the (much larger) backlash that will be created if the public is hit with new taxes on things that are already increasing in price and hurting pocketbooks, like streaming services, getting food delivered, or concert tickets. Not everyone takes the train, but almost everyone streams or orders some Uber Eats these days, and those are what they will talk about and remember. These suggestions feel like a joke, they are flailing and have no good options.
- ChicagoBars - Wednesday, Oct 29, 25 @ 9:15 am:
As somebody who spent last decade being beat up by Chicago live music fans over supporting music promoters being required to have business licenses just like every other small biz in Chicago I wish the sponsors of a tax on live music well as this news spreads thru the Chicagoland music community.
On the plus side the sponsors trying to tax live events at least distracted the media firestorm the $400M a year sales tax increase in the same amendment would usually get. So…winning?
- Sue - Wednesday, Oct 29, 25 @ 9:16 am:
Update: the ILGA website crashed. Who knew there were that many people looking for the details?
- South of Springfield - Wednesday, Oct 29, 25 @ 9:17 am:
The idea of the event tickets being able to be used for a transit ride is a good and novel idea!
- just because - Wednesday, Oct 29, 25 @ 9:22 am:
not a fan of taxing streaming services. I got rid of cable because of the cost. As for taxing concerts and sporting events, they already are so expensive that the average person can not afford to go.
- RiverNorthGuy - Wednesday, Oct 29, 25 @ 9:22 am:
I’m really not sure how to tax unrealized gains. That just doesn’t feel like a realistic proposal. Does any municipality in the country tax unrealized gains?
Events tax is fine, I suppose, though 7% seems a bit high.
Have to come up with revenue somehow, though I was hoping they’d come up with something better after having months to find a solution.
- James the Intolerant - Wednesday, Oct 29, 25 @ 9:29 am:
The cliff started at $600M. If it has been reduced to $200M. Metra is an extremely bloated agency, both in admin and union positions. Give them tge $200K to get through a year and right size all the agencies. Metra pays $30M/year to manage capital projects. And also pays internal employees to do the same thing.
- 47th Ward - Wednesday, Oct 29, 25 @ 9:38 am:
Sorry if I’ve missed this, but how much revenue is being projected by fare increases?
- Jack in Chatham - Wednesday, Oct 29, 25 @ 9:40 am:
I wish our legislators would be required to work as income tax preparers for individuals, small businesses, S-Corporations, C-Corporations, Partnerships and Trusts for two or three years before they are allowed to run for the General Assembly. Implementing a wealth tax will be a complicated compliance nightmare.
If you need $300 million in revenue just double the liquor, wine and beer user fees. While you are at it, reinstate the separate category of Fortified Wine that was combined with regular wine in the 2009 infrastructure funding bill. I was surprised to learn about 20% of Wine sales in Illinois are high octane Fortified Wine. I have only had one drink of Fortified Wine, it is pretty strong. Illinois uses income and death taxes to subsidize alcohol sales. The State spends much more than $300 million each year on the cost of the harm alcohol creates. One study I read from 2009 based on 2005 data projected it cost $1.92 for each drink. Meanwhile the fee on a liquor drink is about 8¢ with wine and beer even less; 2¢ on a beer. Sober adults deserve discounts on insurance premiums. We need more sober adults representing taxpayers in the General Assembly. We are not going to drink our way to prosperity.
- fs - Wednesday, Oct 29, 25 @ 9:42 am:
Taxing unrealized capital gains as income for only certain persons and business raises a whole host of legal issues, including State constitutional questions. But more than that, the cynical, sarcastic sports fan part of me feels like it’s a direct shot at the Bears, telling them to just move to another State.
- Amalia - Wednesday, Oct 29, 25 @ 9:45 am:
what is the revenue projection with the CTA fare increase? an increase that has not happened IN YEARS. how much more do they need so we are not telling concert goers that they have to pay more?
- Chicagonk - Wednesday, Oct 29, 25 @ 9:58 am:
A statewide streaming tax to bail out the CTA? That is not going to be popular.
- NorthSideNoMore - Wednesday, Oct 29, 25 @ 9:58 am:
Where are the fare rider increases ?
- StarLineChicago - Wednesday, Oct 29, 25 @ 9:58 am:
Some of the reform measures are watered down from the Senate version in the spring. Notably I’m concerned about giving each “faction” a unilateral veto (everything that passes the NITA board requires at least two city votes, two Cook County votes, two collar county votes, *and* two votes from state appointees). SB2111 also removes the prohibition of suburban electeds serving on the NITA board, which is welcome news for the suburban mayors who currently have board seats under the current structure but should give pause to anyone who is more serious about true reform.
- Benniefly2 - Wednesday, Oct 29, 25 @ 10:00 am:
Does anybody have a link to the full bill they could kindly share in comments? I am struggling to find it. I want to read it to see if they define streaming cable services (such as you tube tv and hulu live tv, etc) as streaming services. If so, will the cable providers have to pay the same tax. Also curious how they define a ‘large event’. Also would like to see the provisions that would require public transportation ticketing systems to be able to read digital tickets from places like ticketmaster or live nation in order to facilitate free rides to events.
- Steve - Wednesday, Oct 29, 25 @ 10:20 am:
Unrealized gains is fascinating. I would think that it’s a violation of the lack of a progressive income tax in the current Illinois state constitution because it would only applies to billionaires (unless they are fibbing and it applies to more than billionaires). The unrealized gains also would be interesting in that how would the Illinois Department of revenue determine the value of illiquid assets? Could that valuation be challenged in court? It might be much easier for billionaires to live in some other state.
- City Zen - Wednesday, Oct 29, 25 @ 10:28 am:
The amusement tax appears to have a rather large carve-out exempting non-profits, which would include universities. There’s no reason why a UIUC football game should be exempt.
- Three Dimensional Checkers - Wednesday, Oct 29, 25 @ 10:29 am:
Big flop man. I am skeptical this 4.95% wealth tax is constitutional. It is not realistic either. The billionaires would just leave. The market could go down, then you have an almost 5% tax every year. The Senate’s bill was not perfect, but at least it was feasible. This is like Brandon Johnson wrote this bill.
- JB13 - Wednesday, Oct 29, 25 @ 10:33 am:
– the measure would also tax billionaires on unrealized gains on investment assets –
More ironclad constitutional legislation. I’m sure the courts have already made clear that such taxes are allowed. Right?
And if upheld, it *certainly* won’t ever eventually be assessed against nearly everyone’s most valuable “unrealized gain.” Because “working families,” etc., you know
- Sue - Wednesday, Oct 29, 25 @ 10:41 am:
We are approaching idiocracy
- Rahm's Parking Meter - Wednesday, Oct 29, 25 @ 10:49 am:
Need a deal.
I opposed a streaming tax in Arlington Heights. Not for one statewide.
7% for amusement needs to exempt smaller music venues.
Would be for something that could go off of hotels.
- New Day - Wednesday, Oct 29, 25 @ 10:51 am:
The billionaire tax is completely unworkable. You tax the unrealized gain and then what? Do you get a refund when the value goes down?
There’s a reason you only tax actual realized gains. It’s the only way to do it.
- City Zen - Wednesday, Oct 29, 25 @ 10:54 am:
==I would think that it’s a violation of the lack of a progressive income tax in the current Illinois state constitution because it would only applies to billionaires==
Technically, unrealized gains aren’t income, so no constitutional conflict. There are a few other conflicts though.
This is one of those “see, we tried” tax proposals that they know is DOA but float out there to look progressive.
- Three Dimensional Checkers - Wednesday, Oct 29, 25 @ 10:59 am:
===Technically, unrealized gains aren’t income, so no constitutional conflict.===
Article IX Section 2 of the Illinois Constitution says “In any law classifying the subjects or objects of non-property taxes or fees, the classes shall be reasonable and the subjects and objects within each class shall be taxed uniformly.” It does not sound like a uniform tax.
- Peppridge Farm - Wednesday, Oct 29, 25 @ 11:08 am:
Remember when everyone’s favorite governor tried to push a gross receipts tax? I remember.