Streator keeps 1% grocery tax under new municipal occupation tax ordinance

The Streator City Council approved an ordinance to add a municipal grocery retailer occupation tax and a municipal grocery service occupation tax to the Streator Municipal Code, preserving a 1% grocery tax locally after a state-level change in collection and distribution. City staff explained the measure does not increase the tax rate: “It’s only new in the way it’s being distributed,” a staff member said during the council discussion. The staff member also stated, “They call it an occupation tax, but it’s a sales tax that you pay for that purchase,” and added that the rate remains “the same 1 percent.” Council discussion noted that recent state action shifted responsibility for the tax to municipalities and counties; council members said the ordinance is intended to prevent the city from losing an estimated $200,000 to $300,000 annually to the general fund, though the transcript did not provide a firm single-dollar estimate for the city’s exact loss. The ordinance is recorded in the meeting minutes as Ordinance 2025-26 (adding chapter 3.54 to the municipal code). A roll-call vote recorded Council member Danko, Council member Gary, Council member Reid and Council member Marybeth as voting “Aye,” and the ordinance passed. Council members and staff emphasized that this action preserves existing revenue streams rather than imposing a new tax increase on grocery purchases.