Sales tax increase to pay for CTA, Metra, Pace problems

A sales tax increase for the Regional Transportation Authority, soon to replaced by ]the Northern Illinois Transit Authority, goes into effect Aug. 1.

A sales tax hike that’s part of the mass-transit bailout bill passed last year takes effect next week in the Chicago area.

The .25-percentage-point increase for the Regional Transportation Authority is expected to raise $200 million this year and $553 million next year for the Chicago Transit Authority, Metra and Pace.

The increase is intended to prevent service cuts and big fare hikes tied to transit’s fiscal cliff by raising a portion of about $1.5 billion for public transportation annually. It takes effect Aug. 1 in Cook County and the collar counties.

The revenue will go to urban areas where agencies have made poor decisions and failed to enact needed change.

The transit bill, which creates the Northern Illinois Transit Authority (NITA), was signed into law in December by Gov. J.B. Pritzker to prevent a massive transit funding shortfall as pandemic relief money runs out. NITA replaces the RTA on Sept. 1.

The sales tax hike applies to the six-county area around Chicago. As of Aug. 1, the rates will be:

• 1.25% on general merchandise in Cook County.
• 1.50% on qualifying food, drugs and medical appliances in Cook County.
• 1.0% sales tax on general merchandise and qualifying food, drugs and medical appliances in DuPage, Kane, Lake, McHenry and Will counties.

Shoppers in these counties will be sending more money to CTA, Metra and Pace when they buy staple groceries such as milk, bread and eggs or other medicines like anti-itch cream or medical cannabis.

What can transit riders expect?

Travelers across the area, whether using public transit or driving, are likely to face higher costs, because the transit bill includes the potential for Illinois Tollway hikes that would include the largest passenger toll increase in state history.

CTA riders can expect to see more frequent bus service on certain routes.

Metra is adding service to Rock Island line, which runs from Chicago to Joliet. The agency also plans to add a few weekday trains to its Metra Electric line.

Pace is increasing the frequency of suburban bus service and extending hours on certain high-demand routes.

Riders shouldn’t be punished with deep service cuts, but lawmakers shouldn’t treat higher taxes as a substitute for better management.