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Peoria County hears data on 1% grocery sales tax; no decision yet
Summary
Peoria County officials reviewed state Department of Revenue data and county staff estimates on the potential revenue from enacting Illinois's 1% grocery sales tax; staff estimated roughly $52,600 annually if the county adopts the tax, and the board asked for more analysis before any policy decision.
Peoria County board members on Wednesday reviewed an analysis of grocery sales tax revenue and asked staff for more time to digest the data rather than make a policy decision.
At Chairman Dylan's request, county finance staff used confidential Illinois Department of Revenue data plus public retail profiles to estimate how much revenue the county would receive if it adopted the state-authorized 1% grocery sales tax. "We did a very thorough analysis, and extrapolated out the data," the county's finance presenter said, reporting estimates drawn from 2024 sales figures.
The study separated full-grocery retailers from partial-grocery sellers. Staff estimated about $12,583 annually from mostly grocery retailers and about $8,215 from partial-grocery sellers such as convenience stores and dollar stores based on 2024 data; staff added projected receipts from two recently opened/relocating establishments and arrived at an estimated $52,600 per year going forward. The county's current budget includes about $21,000 in grocery-related sales tax receipts, staff said.
The board was clear that adopting the tax is a binary policy choice and that Illinois law limits the county's grocery tax rate to exactly 1%. "It cannot be more than that. It cannot be a fraction of that. It is exactly 1%," Administrator Sorrell said. County staff also noted a practical deadline this fall to implement the tax for next year's collections and said they would return with more analysis before the board takes policy direction.
Members asked follow-up questions about context and trade-offs. Member Ricker asked staff to compare the potential revenue loss from not adopting a grocery tax against the county's increased property-tax receipts tied to equalized assessed value changes; staff agreed to prepare additional comparisons. Chairman Dylan and others urged patience: the item is complex and board members have time to review the material before a vote.
The briefing also included statewide context: staff cited Illinois Municipal League data showing dozens of municipalities and five counties have adopted similar local grocery or sales taxes; within Peoria metropolitan area municipalities that have enacted a grocery tax, staff said, are Chillicothe, Deer Creek, East Peoria, El Paso, Pekin, Tremont and the city of Peoria.
No vote or ordinance was introduced at the meeting; staff will return with further analysis and an executive summary if the board wants to schedule a formal decision.
