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Saint Charles committee votes to reenact 1% local grocery tax to maintain revenue stream
Summary
The Government Operations Committee approved an ordinance to reenact a locally collected 1% grocery tax that the state legislature eliminated for 2026 unless municipalities opt to retain it. City staff said the tax generates roughly $2 million annually for the general fund and is used to fund core services and economic incentives.
The Saint Charles Government Operations Committee voted to approve an ordinance to reenact the existing 1% grocery tax locally so the city can continue collecting that portion of retail taxes after a state law eliminates the statewide levy effective Jan. 1, 2026.
City staff told the committee the state passed legislation this year removing the statewide 1% grocery tax but included an option for municipalities to reenact that 1% locally if they file an ordinance with the Illinois Department of Revenue by Oct. 1, 2025. Staff recommended reenacting the 1% to preserve roughly $2 million in annual revenue currently allocated to the city’s general…
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