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La Grange Park adopts ordinance to preserve 1% municipal grocery tax
Summary
Trustees approved a non-home-rule municipal grocery tax to preserve an estimated $250,000–$300,000 in annual revenue after a state law change that eliminates the statewide grocery tax at the end of 2025.
The Village of La Grange Park Board of Trustees on May 27 approved an ordinance implementing a non-home-rule municipal grocery retailers occupation tax and a corresponding service occupation tax to continue the local 1% grocery sales tax after the state-level change takes effect.
Village staff briefed the board on Public Act 103-0781, signed in August 2024, which eliminates the statewide 1% grocery sales tax at the end of calendar year 2025 but authorizes municipalities to impose the tax locally. The village estimated annual grocery-tax revenue between $250,000 and $300,000 and included the revenue in the village's FY 2025–26 budget.
Trustees debated the choice briefly and approved the ordinance to avoid disrupting budgeted general-fund revenue. Trustee Lautner said losing that revenue “has a direct impact on the services that this village provides to its residents.” The motion passed unanimously.
The village must send a certified copy of the ordinance to the Illinois Department of Revenue before Oct. 1, 2025, to continue the 1% grocery tax without interruption, staff said.
