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Joliet council reinstates 1% municipal grocery tax amid heated debate
Summary
The Joliet City Council voted 5-4 to adopt an ordinance maintaining a 1% municipal grocery retailers and service occupation tax, a change city staff and the finance committee say will preserve roughly $3.7 million in annual revenue; council members debated the tax’s local impact ahead of a budget deadline.
The Joliet City Council on Oct. 19 adopted an ordinance to maintain a 1% municipal grocery retailers occupation tax and a municipal grocery service occupation tax, preserving an estimated $3.7 million in annual revenue for the city.
Council members split 5-4 on the ordinance, with Councilwoman Navarro, Councilman Mudrin, Councilwoman Reardon, Councilman Cardenas and Mayor Terry Darcy voting to adopt the measure and Councils Moreno, Quellman, Clement and Huggs opposed. The ordinance had been recommended by the finance committee and was presented to council as part of the city’s ongoing 2026 budget work.
Finance staff and the committee explained that the state-authorized option requires municipalities to adopt a local ordinance to retain the tax; the measure does not apply to groceries purchased using SNAP benefits and defines groceries as food and food products intended for consumption off the premises, according to the finance committee report presented at the meeting. The finance committee said the tax has produced about $3.7 million in prior years.
Opponents on the council framed the vote as a narrowly targeted tax relief opportunity for residents, noting the average per-resident savings would be modest but material for households on fixed incomes. Supporters said the city faces pending cost increases — including insurance and multi-year water projects — and that the revenue is part of the finance outlook used in constructing the 2026 budget.
Mayor Terry Darcy told the council the timing complicates the decision because the city has not finalized its budget and some collective bargaining outcomes and legacy insurance costs remain uncertain. City staff said the state set an Oct. 1 deadline for municipalities to act; if the city did not adopt an ordinance by that date, the local option would lapse on Jan. 1, 2026.
The council’s vote came after a public comment period in which residents urged the council to consider impacts on households and to prioritize repair of sidewalks and other infrastructure using tax revenue. The ordinance was adopted and will be reflected in final budget calculations for 2026.
The council indicated staff will continue to refine the budget and report back on the use of the revenue; no specific departmental reductions or program cuts were approved or directed as part of the vote.
