Tinley Park board adopts 1% local grocery tax to replace state levy

The Village of Tinley Park’s Board of Trustees on May 6 adopted an ordinance to implement a 1% municipal grocery retailers occupational tax and a 1% municipal grocery services occupational tax, effective Jan. 1, 2026.

Trustee Bill Brady said the measure responds to Illinois Public Act 103-0781, under which the state’s 1% grocery tax will be eliminated beginning Jan. 1, 2026. Brady said staff estimated the change would “be about $3,000,000 hit annually to the village’s general fund revenues.”

The ordinance was introduced after prior discussion at the board’s Committee of the Whole. No board member asked questions during the floor discussion; the clerk called a roll and trustees voted yes, and the ordinance carried.

The action replaces a state tax with a municipal counterpart; trustees presented it as revenue replacement rather than a net new tax increase. The board did not provide a detailed local revenue allocation plan in the meeting record beyond the general statement that the village’s general fund would face an estimated $3 million reduction if no replacement were enacted.

Next steps noted in the meeting: the ordinance was eligible for adoption and was adopted at the May 6 meeting, with an effective date of Jan. 1, 2026. The meeting record does not include additional implementing rules, an exact list of taxable grocery items under the municipal code, or an impact analysis on lower-income households.