Council gives first reading to ordinance continuing 1% municipal grocers' occupation tax, effective Jan. 1, 2026

Delaney, Ill. — The Delaney City Council conducted the first reading of an ordinance on Aug. 11 to implement a 1% municipal grocery retailer occupation tax, effective Jan. 1, 2026. The ordinance was moved and seconded and advanced after council discussion.

Why it matters: Council members said continuing the 1% grocery occupation tax maintains a revenue stream that would otherwise be lost following state-level changes; one councilmember estimated the city could lose close to $100,000 if the tax were not continued.

Discussion highlights: A councilmember noted that state changes had repealed a prior rule but gave municipalities the option to retain the 1% tax locally. One councilmember said, "it doesn't change anything. Like, it just continues what we've already been doing." Another member noted other nearby towns have taken the same step. Council members discussed the timeline and noted the city has until January to decide on implementing the tax.

Procedure: This was the ordinance’s first reading (item 25CDash0318). The council moved and seconded the ordinance for first reading and took a roll call; the item will return for a second reading and final adoption at a later meeting unless the council elects to waive the second reading in accordance with statutory and local rules.

Fiscal note: At the meeting a councilmember estimated the tax represents roughly $100,000 in city revenue; no formal budget amendment was presented at the first-reading stage.

Next steps: The ordinance will come back for final consideration in a subsequent meeting or may be scheduled for waiver of a second reading if the council chooses that path.