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Roscoe officials briefed on option to restore 1% grocery tax after state elimination
Summary
At the Roscoe Village Board meeting on June 3, a village staff member briefed trustees on the scheduled elimination of Illinois’ grocery tax and on a local option to restore a 1% tax to replace lost revenue.
At the Roscoe Village Board meeting on June 3, a village staff member briefed trustees on the scheduled elimination of Illinois’ grocery tax and on a local option to restore a 1% tax to replace lost revenue.
The presenter said the grocery tax — currently levied at 5% at the state level with revenues returned to municipalities — is scheduled to be eliminated on Jan. 1, 2026. The Illinois General Assembly has allowed home-rule and non–home-rule jurisdictions the option to restore 1% by a local board vote; any village action to restore the tax would have to be taken by October to take effect at the start of the calendar year.
The village staff member told trustees that Roscoe stands to lose about $100,000 in annual revenue if the tax is not restored. That amount, the presentation said, would roughly cover the cost of one entry-level police officer or rental expenses for snowplows and public-works equipment, and would affect planned park and playground purchases tied to new subdivisions.
The presenter also summarized a 2024 study included in the meeting packet that assessed the distributional effect of the change. According to the materials, lower-income households in the first and second income quartiles would see small annual savings — about $1.64 per year — while higher-income households could save roughly $60 to $80 annually; the presenter emphasized that those per-household amounts are small but that the aggregate effect on municipal revenue is significant.
No motion or formal vote was taken on the tax at the June 3 meeting. The village staff member said the item will appear on the committee-of-the-whole agenda at the board’s next meeting; trustees will be asked to discuss the issue and likely take a position in July so the village can meet the October deadline if the board chooses restoration.
The presentation and materials referenced the Illinois General Assembly and a 2024 impact study; the village will not enact any change until the board takes formal action.
Meeting materials provided to trustees include detailed figures and the study referenced by staff.
