Frequently Asked Questions

What is a special service area?

According to Illinois law, a “Special Service Area” is a contiguous area within a municipality or county in which
special services are provided in addition to those services provided generally throughout the municipality or county.
The cost of the special services are paid from revenues collected from taxes levied or imposed upon property within
that area. Stated more simply, SSAs are local tax districts that fund enhanced services and programs, which are
paid for by a localized property tax levy within contiguous areas. The enhanced services and programs are in
addition to those currently provided through or by the City of Chicago.

What are the boundaries of the Chinatown SSA?

Who decides how to spend the tax levy?

Each SSA is governed by a local Commission which oversees and recommends the annual services, budget, and
Service Provider Agency to the City. All meetings of the SSA Commission are subject to the Illinois Open Meetings
Act. SSA-funded projects typically include, but are not limited to: additional public way maintenance and
beautification; district marketing and advertising; business retention/attraction; special events and promotional
activities; auto and bike transit; security; façade improvements; and other commercial and economic development
initiatives. All of these projects or programs are above and beyond what is already provided by the City of
Chicago.

How is the money collected? How much does it cost property owners?

The money is collected by Cook County when property owners in the district pay their taxes. The amount collected
varies based on the tax rate, but it can never exceed a certain percentage of a property’s Equalized Assessed
Value (EAV) – called the tax rate cap. That tax rate cap is set by the local ordinance that creates the SSA and does
not change without additional legislation (i.e., a subsequent ordinance that revises the initial terms of the SSA when
it was created). The SSA Commission then sets the tax rate on an annual basis based on the amount budgeted for
programs and services in the district. Therefore, there are 2 important factors that determine the cost: 1) a
property’s EAV and 2) the annual tax rate. If you own a property with an EAV of $300,000, for example, with a
tax rate of 0.01%, you would see an additional $300 in taxes on your annual bill.

Why is an SSA desirable?

SSAs can be used to fund a wide range of special or additional services and/or physical improvements in a defined
geographic area AND those services and improvements are determined by local representatives of the area. SSAs
allow local areas to provide expanded services without the municipality incurring debt or levying a tax on the entire
municipality. In an SSA, only the property owners that benefit from the improvements are assessed an additional
tax that is used to pay for an expansion of services. Often, services that are provided by an SSA can replace
services that a business pays for (e.g., snow removal). The SSA can take the incremental taxes from a group of
property owners to provide common services that may have previously been paid for by individual property
owners.

What are some examples of other SSAs?

There are 52 SSAs throughout the City of Chicago – from Hyde Park, to Lincoln Park, to the Chicago Loop, to Lincoln
Square, Andersonville, and Rogers Park. These SSAs fund a variety of services including security services, façade
rebate programs, special events, snow removal, sidewalk litter removal, lighting, landscaping/beautification efforts,
and more.

This FAQ was provided by PLACE Consulting, Inc. for the Chicago Chinatown Chamber of Commerce for the
Chinatown SSA.