Package Delivery Tax Floated To Help City's Budget Woes But Mayor Says It'd Need State Approval

Ald. Gilbert Villegas is set to propose a $1. 25 tax on package deliveries in Chicago to address a significant budget deficit. The tax could potentially raise between $137. 5 million and $275 million each year, depending on delivery volumes, and would exempt essential items like groceries and medicine.

Villegas emphasized that the tax would encourage residents to shop locally, thereby supporting brick-and-mortar businesses. However, Mayor Johnson indicated that state approval would be necessary for the tax's implementation, casting doubt on its viability. Villegas countered that discussions with legal advisors suggest otherwise. The proposed tax could replace a controversial corporate head tax aimed at filling a $1. 19 billion spending gap in the 2026 budget.

Johnson remains open to negotiations on the head tax, which has faced significant opposition from various stakeholders. The City Council must pass a budget by the end of the year, making timely decisions critical.