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City staff to introduce 1% grocery tax ordinance; council told deadline may be Oct. 1
Summary
City administrators said they will present an ordinance to impose a 1% grocery tax to replace revenue lost after the state eliminated a 1% local grocery tax; staff estimate the impact at about $200,000 and said the ordinance must be filed with the Illinois Department of Revenue by Oct. 1.
City staff said they will present an ordinance to impose a 1% local grocery tax after the State of Illinois eliminated a 1% grocery tax, effective Jan. 1, 2026. The council was told that communities that wish to adopt a local grocery tax must notify the Illinois Department of Revenue by Oct. 1.
Staff said they are working on calculations of the local fiscal impact and estimated — based on available information — that the city could lose roughly $200,000 in revenue without a local replacement. The city administrator said there is no definitive formula or state-provided data for precise calculations and that the figure is an estimate.
Staff listed several nearby communities that have adopted a grocery tax, including Forsyth, Mount Zion, Savoy, St. Joseph, Urbana and Champaign, and said the proposed ordinance will be presented at an upcoming council meeting. No formal ordinance was introduced or voted on at the Aug. 25 meeting.
