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DeKalb council debates keeping 1% grocery tax after state repeal
Summary
City Manager recommended that DeKalb adopt a local 1% replacement for a statewide grocery tax the legislature eliminated, warning the city would lose roughly $800,000 a year and likely have to cut services or delay hires if it does not. Council members split; staff will return with scenarios and an ordinance option before the deadline.
DeKalb — City officials on June 9 debated whether to put in place a local 1% “replacement” grocery tax after the Illinois Legislature repealed the statewide 1% tax effective Jan. 1, 2026.
City Manager told the City Council that he recommends the council “pass a local tax as a replacement tax, not an additional tax” before the statutory deadline, arguing the city currently collects about $800,000 a year from the 1% tax and losing that revenue would force hard budget choices.
The recommendation came during an extended explanation of who benefits from the tax and who does not. The City Manager noted households receiving Supplemental Nutrition Assistance Program benefits (SNAP)…
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