Illinois lawmakers are weighing a plan to raise more than $1.5 billion a year for mass transit via new taxes on billionaires, concert tickets and streaming services like Netflix.

Transit advocates say the money is needed to avert drastic service cuts next year as federal COVID relief expires — and to make long-term improvements to the region’s system while extending funding to downstate transit.

The package outlined by House Democrats this evening differs sharply from a Senate plan approved in May and faces new opposition — along with a race to win approval in both chambers before the veto session ends Oct. 30.

The House proposal would raise between $1.5 billion and $1.8 billion annually through a mix of measures, including a 4.95% “billionaires tax” on unrealized gains, a new 7% statewide amusement tax on streaming, sports and concert tickets, and a $5 surcharge on large-event tickets that would double as a transit day pass, state Rep. Kam Buckner of Chicago, one of the lead transit negotiators, told Crain’s.

Buckner said he’s confident the package can be approved in his chamber because the taxes have been thoroughly vetted by House Democrats to gauge their support.

"Whatever we do has to be balanced. It can’t pick winners and losers. It has to be doable,” he said.

Also under consideration is a regional transit sales tax increase and adding speed cameras across the state near slow-zones like schools and parks. The outlines of the package were first reported by Capitol Fax. 

The amusement tax proposal and the extra $5 large event ticket surcharge already face an onslaught of opposition from sports teams and large concert promoters who sent their lobbyists to Springfield as rumors circulated of what was under consideration by House Democrats.

The $5 surcharge would not go into effect until one year after passage of the bill and would hit all tickets for events at venues with at least a 10,000-person capacity.

Some revenue streams included in the Senate bill did not have support in the House, including a “a real aversion” to a $1.50 delivery fee.

"Say what you want to say about an amusement tax, but you’re not paying it every single day. There are folks who probably will end up paying a delivery fee not once a week, but maybe two or three or four times a week,” he said. 

The “billionaires tax” reflected House Democrats’ concern that the previous Senate bill, which included the delivery fee and a surcharge on rideshare trips in the region, was too regressive, Buckner said. 

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.” 

“Single mothers that work two jobs don’t have a choice but having shit delivered. Seniors that don’t have the ability to drive don’t have to get the stuff delivered,” he said. “Versus somebody who chooses to spend $250 on a concert ticket, that’s more of a progressive tax.”

Poulos is part of the labor coalition supporting transit reform and has appeared to rebuff efforts to add a tollway surcharge dedicated to mass transit. Trade unions have said that idea is a non-starter because the money is meant to fund highway improvements.

It’s also unclear if Chicago Mayor Brandon Johnson will support the package. The state amusement tax would be stacked on top of the city’s 10.25% rate. 

"Isn’t the city of Chicago and the mayor going to say, ‘Take your hand out of our cookie jar, we’ve had this for a number of years…and all of a sudden you guys are going to tack on 7%,” Poulos said. 

The mayor’s office did not respond to a request for comment.