Winnebago County rejects proposed 1% grocery tax for unincorporated areas

The Winnebago County Board voted down an ordinance to add a county grocery retailers and grocery service occupation tax for unincorporated Winnebago County, a measure supporters said would preserve parity with municipalities and opponents said would amount to an unnecessary new tax. The ordinance would have added Article 8 to Chapter 78 of the Winnebago County Code to impose a 1% tax on groceries and prepared foods in unincorporated areas. Proponents said the tax would not duplicate municipal taxes, could help attract grocery stores to unincorporated commercial corridors and diversify county revenue streams. Opponents said residents already face too many levies and the county should not add another tax while finances are stable. Supporters emphasized local economic-development goals and the limited current revenue potential. "As we develop the I‑39 corridor ... it would not be good partnership or good service for us as a county to, in essence, maybe compete on accident against municipalities," said County Board Member Paul Sweeney, who made the motion to approve the ordinance. County staff clarified that the tax would apply only in unincorporated areas and would not overlap with the majority of municipalities that have already acted on the tax. Opposition came from board members emphasizing the county's stable finances and residents' general desire for lower taxes. "People are taxed to death every which way you can think of," County Board Member John Webster said during debate. Board members also questioned whether rural residents would see direct benefit; several said no one from unincorporated areas had contacted them asking to oppose the tax. County staff member Ben Dornbusch told the board the county could still adopt the tax in a later cycle if the board approved by the administrative deadline for implementation, saying, "If we don't do it now, we can vote it in next year ... July 1 or January 1 is when they implement." Fiscal details and historical revenue estimates from the Illinois Department of Revenue were not available at the meeting. A motion to approve the ordinance, made by County Board Member Paul Sweeney and seconded by County Board Member Kate Valdez, was put to roll call and failed; the clerk announced, "The ordinance is not approved." The transcript does not provide a complete per-member roll-call list in the record excerpt available here. Board members noted the vote did not prevent the county from reconsidering the measure in a later cycle and that implementation dates are governed by state collection schedules.