Cresthill votes to adopt local grocery tax to replace state collection

The Cresthill City Council on Sept. 2 approved a non–home-rule ordinance to implement a 1% municipal grocery retailers and grocery services occupation tax, moving local grocery tax administration from the state to the city effective Jan. 1, 2026. Mayor Raymond R. Solomon presided.

Council members said the change maintains the existing 1% tax for purchases made in Cresthill after the state repeal and seeks to avoid a competitive disadvantage with nearby municipalities that have already enacted similar taxes. City Administrator Blaine Wing told the council the city estimates the replacement tax will generate roughly $400,000 annually and that the figure reflects updated outreach to other grocery locations and guidance from the Illinois Municipal League.

The ordinance was offered by Alderman Overland and seconded by Alderman Nate Albert. During discussion one council member said they would vote against the measure because of concern about senior residents and others on fixed incomes; another council member argued that surrounding communities already charge the tax and not adopting it would shift costs to Cresthill taxpayers in other ways. The motion passed by roll call; Alderman Mark Cipiti recorded a “No” vote, and the remaining voting members voted “Yes.” The council recorded the ordinance as 2031.

The ordinance will be effective Jan. 1, 2026, if all administrative steps are completed. Council members noted the state will continue to collect the tax on behalf of municipalities through the Illinois Department of Revenue under the new local administration model and that the city must finalize local administration steps before the effective date.

Mayor Solomon and multiple council members framed the measure as maintaining the status quo for in-city shoppers while acknowledging the state-level changes prompted the local vote. City staff said they will continue to refine revenue projections and communicate details to residents.

Questions raised during the debate included the revenue estimate methodology and the potential financial strain on residents; staff said the $400,000 figure is the best current estimate and that some earlier figures in memos were placeholders. The council did not direct staff to return with additional amendments during the meeting.

The vote: motion by Alderman Overland, seconded by Alderman Nate Albert; roll call recorded Mark Cipiti — No; Nate Albert — Yes; Joe Kubal — Yes; Scott Dyke — Yes; Angela Desario — Yes; Dorel Jefferson — Yes; Tina Oberlin — Yes. Outcome: approved (ordinance 2031).