Gurnee board approves 0.5% home‑rule sales tax to replace state grocery tax

GURNEE, Ill. — The Gurnee Village Board on June 16 approved Ordinance 2025‑49 to add a 0.5 percentage point home‑rule retailer—s occupation and service occupation tax, a measure staff recommended to replace revenue from a 1% grocery tax the state is eliminating effective Jan. 1, 2026.

The board voted 5‑0 to adopt the ordinance after staff and trustees said the sales tax increase would largely replace $2 million to $2.5 million in annual grocery tax revenue, smooth upcoming water and sewer capital spending and shift more of the burden to out‑of‑town shoppers.

Why it matters: The village faces an imminent revenue gap after the state action removing the grocery tax. Village staff told trustees that a half‑percentage point increase in the local sales tax is the available municipal option that most closely…