Machesney Park committee backs continuation of 1% grocery sales tax

The Machesney Park Administration and Finance Committee voted June 16 to recommend Ordinance 2225, which would continue the village's existing 1% grocery sales tax, sending the ordinance to the full Village Board with a positive recommendation.

Village Administrator James Richter told the committee that the State of Illinois altered how the 1% grocery sales tax is collected and that municipalities must adopt a local ordinance to continue collecting the tax. "This is not a tax increase. This is just a continuation of an existing sales tax that we have in place," Richter said. He added that SNAP and WIC purchases are federally exempt and would not be affected by the local implementation.

The tax is described by staff as an essential revenue source for the Village of Machesney Park. When asked whether the receipts would be spent the same way as in previous years, Richter said the revenues "would go into the general fund. We wouldn't be earmarking it for specific uses." The committee did not direct staff to restrict or dedicate the revenue to a particular program during the meeting.

Procedural items handled before and after the staff report included approval of the June 2, 2025 meeting minutes and a warrant totaling $633,303.82; both items were approved in committee. The ordinance will advance to the July 7 Village Board meeting with a positive recommendation from the Administration and Finance Committee. No public comments were recorded on the ordinance during the committee meeting, and the meeting was then adjourned.

The committee's recommendation is advisory; final approval of Ordinance 2225 and any decisions about how the resulting revenues are used will be made by the full Village Board at the July 7 meeting.