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Village board warns loss of 1% grocery sales tax could cut about $202,300 from Beecher budget
Summary
Officials told the Village Board on June 23 that the state will eliminate the 1% local grocery sales tax effective Jan. 1; the village could lose roughly $202,300 annually unless it takes action to reinstate the tax.
The Village Board of Beecher was briefed on June 23 that the state will eliminate the 1% local grocery sales tax effective Jan. 1, and officials said the change could reduce the village’s revenue by roughly $202,300 a year unless the board votes to reinstate the tax.
Mayor told the board that “part of the budget that they passed down state was to eliminate the 1% grocery sales tax as of this coming January 1.” The mayor added the tax “never went to the state in the first place” and currently flows back to municipalities to help run local services.
The mayor estimated the village would lose “about 202,300 and some odd dollars per year” if the tax is not reinstated, but said the board was not voting on the matter at the June 23 meeting and was only being informed so members could consider options.
The mayor described the administrative mechanism discussed by the state: municipalities that normally cannot raise taxes without a referendum will be allowed to reinstate the 1% grocery sales tax; under the described plan, residents who now pay the tax would continue paying it but the legal step would enable the state to continue collecting and returning the revenue to municipalities in the same manner.
Board members did not take formal action on the item at the meeting. The mayor presented the estimate and asked trustees to review the potential budget impact ahead of any future vote.
