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Peoria council votes unanimously to reinstate 1% grocery tax to replace state pass-through
Summary
At its April 22 meeting the Peoria City Council adopted an ordinance to implement a 1% municipal grocery retailer’s and grocery services occupation tax effective Jan. 1, 2026, citing an estimated $5 million annual gap if the state-collected tax is not locally reinstated.
The Peoria City Council voted unanimously April 22 to adopt a municipal grocery retailer’s occupation tax and a grocery services occupation tax of 1%, a move city staff said is needed after the state’s repeal of the previous passthrough arrangement.
City Finance Director Kyle Cratty told the council staff originally estimated the loss from the state change at about $4 million; as staff refined sales-tax receipts the figure rose. “As we prepared for this agenda item and looking at, kinda how our sales taxes have come in, we believe the number is closer to 5,000,000,” Cratty said. Council members approved a separate, technical recodification of the city’s retailers’ and services occupation tax language before voting to implement the grocery tax.
The tax will be imposed locally under a city ordinance and administered through the Illinois Department of Revenue’s collection process; the council approved filing requirements intended to allow the tax to take effect Jan. 1, 2026, if all state…
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