City Council reviews 1% grocery tax impact on local revenues

The Quincy City Council meeting on February 10, 2025, focused on the potential implementation of a local sales tax to replace a 1% tax being eliminated by the state. The discussion highlighted the importance of this tax for the city’s revenue and its implications for the upcoming budget.

City officials, including Jeff Mays, addressed the council and the public, emphasizing the need for clarity on the tax's impact. Mays noted that a revenue presentation is scheduled for March 4, which will provide detailed insights into the tax's historical performance and its expected future contributions. He indicated that the council needed to resolve the tax issue promptly to align with the budget process.

During the meeting, council members raised questions about the tax's effects on local grocery prices and overall sales tax revenue. Mays explained that the grocery tax generates approximately $1.2 million annually, contributing to a total sales tax revenue of around $12 million. He assured the council that the upcoming presentation would include a comprehensive analysis of how inflation and changes in consumer behavior, particularly during the COVID-19 pandemic, have influenced grocery spending.

The council also discussed the potential financial implications of reducing the tax rate, with concerns about the city’s ability to absorb a projected $400,000 revenue cut if the tax were to be lowered. Mays highlighted that the city has relied on robust sales tax growth to maintain low property tax rates and fund essential services, including pensions.

As the council prepares for further discussions, the next meeting on February 18 will include a second reading of the proposed ordinance, with a final vote expected by the end of the month. The outcome of these discussions will significantly impact Quincy’s financial landscape and its ability to fund local services.