Mundelein finance committee debates keeping 1% local grocery tax as state repeal takes effect Jan. 1, 2026

The Mundelein Finance Committee on Aug. 25 discussed whether the village should adopt a 1% local grocery tax after the state’s repeal of the grocery tax, effective Jan. 1, 2026, and the October 1 deadline for municipalities to notify the state if they intend to continue collecting the tax.

The discussion matters because the grocery tax generates roughly $1.1 million a year for the village general fund, and losing that revenue would require cuts, new revenue elsewhere or both. Gunther, a staff presenter, told the committee that “the state passed public act 103781, which was actually to repeal the grocery tax effect as of 01/01/2026,” and that municipalities must notify the state by Oct. 1 to continue collecting the tax locally.

Committee members heard two clear options from staff and discussed others: take no action and allow the grocery tax to lapse (state repeal will take effect), or adopt a 1% local grocery tax to retain the revenue locally. Gunther said the grocery tax…