Special Service Areas, or SSAs, are special taxing districts in Chicago that levy additional taxes on property owners and businesses within their boundaries to pay for services beyond what the city provides. There are currently 53 SSAs that collect over $25 million annually in additional taxes. SSAs are governed by unelected commissioners and service providers who have discretion over their budgets, providing opportunities for corruption. Taxpayers have little say in how SSAs are established or funded, amounting to taxation without representation. Residents and business owners have challenged SSAs to increase transparency and accountability of these special taxing bodies.

1. SPECIAL SERVICE AREAS: CHICAGO’S LITTLE-KNOWN TAXING BODIES
Special Service Areaslevy taxeson Chicagoansoverand abovethealready steep taxesand feesimposed
by the city.
Special Service Areas,orSSAs,are expectedtoraise inexcessof $25 million in2016 from the taxpayers
withintheirboundaries.The taxesleviedforSSAscome ontopof the propertytaxesandover30
differentadditional taxesandfeesimposedbythe city,whichalreadymake Chicagoansthe mostheavily
taxedresidentsof anycity inIllinois.Whatare SSAs?Putsimply,SSAsare taxationwithout
representationforpetprojectsthroughoutChicago –and the people whopayforthese special taxing
districtshave little sayinhowthey’re setuporrun.
People whoownorrentpropertyinany of the 53 designatedSSAspayadditional taxesthattheymay
not understand.ThroughSSAs,the cityandaldermencantax propertyownerswithingivenareasto
raise fundsforadditional maintenance andservice.Eventhoughthere are 53 SSAsinChicago,virtually
none of the residentsorbusinessownerswithinthese vastswathsof the cityknow theyexist.
For example,in2003, then-AldermanMannyFloreswasconcernedthatcityserviceswerenot
adequatelyaddressingthe needsof the 1stWard, particularlyforgarbage pickup,graffiti removal,snow
removal andthe retentionof local artists.Floresworkedwiththe WickerParkBucktownChamberof
Commerce tocreate SSA No.33. Throughthe use of taxpayerfunds(currently,residentsof SSA No.33
are taxedat a rate of 0.304 percentfora total annual amountof $1,050,554), the chamberof
commerce,whichthe citydesignatedasthe service providerforthe SSA,conductedaninventoryof
trees,addedandreplacedtrees,installedartprojects,sponsoredevents,cleanedsidewalksandstreets,
and addedtrashcansand bike racks.But the city isalreadysupposedtocoversuchservicesthroughthe
manytaxesit imposesandadministers,inpartthroughthe aldermanicmenuprogram.
Another layer of taxes
The IllinoisConstitutiongrantsmunicipalitiessuchasChicagothe authority“to levyorimpose additional
taxesuponareaswithintheirboundariesinthe mannerprovidedbylaw forthe provisionof special
servicestothose areasand forthe paymentof debtincurredinorderto provide those specialservices.”
SSAsincrease the alreadyextensive listof governmentunitswithinthe city.The SSA programcreatesa
newtaxingbodywithinspecifiedboundarieswhere the additional tax revenue isusedtopayfor services
such as sidewalkmaintenance,landscaping,security,snow removal,decorative trashreceptaclesand
local businessadvertising.SSAsfurnishthese servicesinadditiontothose the cityalreadyprovides.
How SSAs are born
SSAsare a prime example of taxationwithoutrepresentation,asthere islimited,if any,dailyoversight
fromelectedofficials.The processbywhichanSSA comesto fruitionisfavoritismatwork.
First,a sponsoragency,typicallythe future providerof services(e.g.,the LincolnPark Chamberof
Commerce,the ChicagoLoopAlliance,Backof the Yards NeighborhoodCouncil) holdsseveralpublic
meetingsto“gauge communitysupport.”(Intruth,these meetingsare scarcelyattendedbymembersof
the public.)

2. The sponsoragencythencompletesanapplicationthatincludesinformationsuchaseconomicanalyses
and demonstratedpublicsupportamongthe ownersandlesseesof propertywithinthe affectedarea.
The mayor, withinputfromthe local aldermen,appointscommissionerstoserve asstewardsof
taxpayermoney.Taxpayersdonotgetto vote forthese stewards;nordo taxpayershave anysayover
whocontrolstheirmoney.
These stewards,inturn,selectandworkwithcity-approvedproviders,whotendtobe local chambersof
commerce or neighborhoodcouncils,tomanage the day-to-dayaffairsof the SSA.
Afterthe selectionof all the parties,the CityCouncilholdsasparselyattendedpublichearingbefore
passingthe relevantscope-of-servicesordinance.
At the time of creation,the Departmentof PlanningandDevelopmentsetsanupperlimitforthe tax
rate forthe SSA.Duringthe durationof the SSA,the tax rate can increase annuallytomeetthe needsof
the SSA butcannot exceedthe setupperlimit.SSA budgetscanbe as highas $2.4 millionandaslowas
$9,000 and mustbe approvedbyCityCouncil.SSAsare expectedtoraise inexcessof $25 millionin
2016.
Unelectedcommissionersandappointedservice providershave discretionoverthe budgetsintheir
SSAs.Thus,while residentshave the opportunitytovoice concernsoverSSA spendingatvarioustimes
throughoutthe process,the ultimate decisionslie withthose unelectedcommissionersandservice
providers.
What can taxpayers do?
Taxingbodiesoverseenbyunelectedindividualsprovideample opportunityforcorruptionand
cronyism.InNovember2015, the city attemptedtocreate a new SSA in the JeffersonPark
neighborhoodwiththe expressedsupportof local 45th Ward alderman,JohnArena.However,instead
of the usual quickpassage,residents andbusinessownersforcedadelayonthe matterbydetailing
possible fraudandinaccuraciesinthe process.The itemremainsinlegislative limboandmayneverpass
out of the Finance Committee.(The alderman’sstaff,though,isconfidentthatitwill eventuallypass.)
It isoftendifficultfortaxpayerstodeterminewhichtaxestheypayandwhen,andtowhatendscity
officialsuse those taxes.Itisevenmore difficultwhenthe taxingbodyisnotmanagedbyelected
officialsaccountabletotheirconstituents.Knowledgeof these taxeswill leadtoamore informedand
active citizenry,whichisagoodfirststeptowardeasingone of the highesttax burdensof anymajorcity
inthe country.