Business and Finance

The lifespan of some of the city's "enterprise zones" would be extended under legislation approved Monday by the City Council Committee on Finance.

Mandated by the state, enterprise zones are special areas that offer a number of tax exemptions and credits to businesses — many from the manufacturing sector — that are located within the zones’ boundaries. There are currently 95 enterprise zones in Illinois, six of which are located in Chicago.

The City Council Committee on Finance signed off on a plan Monday that would replace the flat tax on garage and lot parking with a progressive tax system based on parking rates. The potential effects of the proposal on Chicago’s hospitality and garage industries remain in question, however.

The approved proposal would switch the city’s current tax for parking in a garage or a lot from a flat rate to a rate based on a percentage of the fee charged by the parking lot operator.