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Council hears first reading of ordinance to reimpose 1% grocery tax for 2026
Summary
Mayor presented a first reading of an ordinance to reintroduce the 1% municipal grocery sales tax repealed by the state, aiming for an effective date of Jan. 1, 2026, to restore roughly $1.1 million in annual revenue to the city.
The Kankakee City Council received a first reading Monday for an ordinance that would reimplement a 1% municipal grocery-sales tax the state previously removed. The mayor said the lost tax amounted to roughly $1.1 million annually for the city and that many municipalities are restoring the rate to recover revenue.
City officials said they are not pursuing a one-time additional 1% tax option allowed under state rules but instead intend to restore only the repealed 1% grocery-tax rate. The mayor said council would consider second reading on July 7 and, if approved, the city would notify the Illinois Department of Revenue in time for an effective date of Jan. 1, 2026.
No vote was taken; the item was presented for first reading only and will return to council for a second reading and final action. Staff asked council members for questions and confirmed the intent to submit required notices to the state once local approval is obtained.
