Arlington Heights board keeps 1% grocery tax, approves streaming tax to help fund fifth ambulance

The Arlington Heights Village Board on Aug. 18 approved two ordinances that staff said are needed to meet revenue targets in the village’s 2026 budget plan: an ordinance to retain the municipal 1% grocery retailers’ occupation tax and a separate ordinance creating a streaming-amusements tax. The grocery ordinance passed 6-3; the streaming ordinance passed 7-2.

Board members and staff said the votes respond to shortfalls built into the village’s projection if the grocery tax is not retained and to funding needs for a fifth ambulance that staff plan to have fully staffed by Jan. 1, 2026. Director of Finance Melissa Gallagher and other staff told trustees the village estimates roughly $1,300,000 in annual general-fund revenue would be lost if the municipal grocery tax were eliminated; staff described the streaming tax as a partial revenue source tied to the ambulance expansion and estimated typical household impacts at about $41–$61 per year depending on service subscriptions.

Supporters said the measures preserve predictable revenue for core services. Trustee Shirley, among trustees who voted yes on both ordinances, argued the taxes are a continuation of longstanding local revenue streams and would reduce upward pressure on the property tax levy. Mayor (President) Tonali urged the board to retain the existing grocery tax and implement the streaming tax to meet the village’s…