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Kankakee approves 1% municipal grocery/retail occupation tax to remain effective Jan. 1, 2026
Summary
Council adopted an ordinance to implement a municipal retailers/grocery occupation tax at 1% and confirmed staff must submit required documents to the Illinois Department of Revenue by Oct. 1 to keep the tax in effect for 2026.
Kankakee City Council on Monday approved a second-reading ordinance implementing a 1% municipal retail and grocery occupation tax, the measure the city must adopt to retain the tax beginning Jan. 1, 2026.
City staff told the council the tax is common among Illinois municipalities and that the city estimates roughly $1.15 million in revenue tied to the levy; staff also said a portion of that revenue is generated by nonresidents who shop in Kankakee.
Council members were reminded that the city must submit the ordinance to the Illinois Department of Revenue by Oct. 1 to keep the tax in effect for the 2026 calendar year. The council unanimously approved the ordinance on roll call (12 ayes, 0 nays).
Ending: City staff said the revenue will be included in next fiscal-year planning; council discussion framed the vote as a routine procedural step to retain an already authorized levy rather than a new tax.
