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Board votes to maintain local grocery tax after state eliminates food sales tax
Summary
With the State of Illinois eliminating sales tax on groceries, Skokie’s Village Board approved a 1% municipal grocery retailers occupation tax to maintain roughly $1.2 million in annual revenue used for village operations.
Village Manager John Lockerbie told trustees that the State of Illinois will eliminate sales tax on qualified food and drug sales effective Jan. 1 and that municipalities have legislative authority to replace that revenue locally. Skokie currently receives about $1.2 million annually from grocery tax revenue; Lockerbie and staff recommended a local 1% municipal grocery retailers occupation tax to maintain that revenue stream for village services.
Trustees discussed equity and revenue structure. Trustee Pierce (recorded with varying spellings in the minutes) emphasized that the action maintains, rather than increases, the tax burden and that losing the revenue would be equivalent to eliminating funding for roughly 11 police officers or firefighters. Trustee Schechter noted the regressive nature of sales taxes and said a broader revenue‑equity discussion is needed; staff indicated a revenue conversation is planned during fall strategic discussions.
Several members of the public asked whether shoppers would go to neighboring municipalities to avoid tax; staff said most peers plan similar actions and that Skokie is not expected to be an outlier. The board voted in favor of the ordinance to maintain the grocery tax; trustees recorded aye votes and the motion passed. The final ordinance will be presented for second reading and adoption on Aug. 4.
