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Deerfield board approves ordinance to replace expiring state grocery tax to avoid $500,000 revenue loss
Summary
The Village of Deerfield approved an ordinance replacing a state-repealed grocery retailers/service occupation tax to preserve roughly $500,000 in annual revenue; board and staff emphasized this is a replacement, not a new tax.
The Village of Deerfield Board of Trustees approved an ordinance on June 16 to implement a municipal grocery retailers occupation tax and a municipal grocery services occupation tax that replaces a state-imposed levy set to lapse on Jan. 1, 2026.
Village officials said the measure is a replacement of the state tax, not an additional levy, and that failing to act would cost the village about $500,000 a year. "This is a replacement of the state repealed tax effective 01/01/2026, not an additional tax," a staff member said during the discussion. "If we did not do this, we would be looking at losing about $500,000 per year of revenue."
The village attorney prepared the ordinance, and staff said they would file it with the Illinois Department of Revenue if the board approved it to avoid a lapse in collections. Trustees moved and seconded the ordinance on the floor and approved it by roll call.
Board members noted neighboring communities have acted or are considering similar replacements, which would make Deerfield consistent with nearby municipalities. The trustee roll-call recorded affirmative votes for several trustees during the approval, and the motion carried.
The ordinance replaces the state-level levy the village currently receives; village staff emphasized multiple times that it would not increase taxes beyond what residents and businesses already pay under the state framework.
What happens next: if no further legal or administrative delays occur, staff said they will file the approved ordinance with the Illinois Department of Revenue to ensure continuity of the tax receipts starting Jan. 1, 2026.
