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Rock Island council votes to retain 1% municipal grocery tax as state repeal approaches
Summary
Councilors voted to continue the city's 1% municipal grocery retailers occupational tax after staff said the state-level repeal requires local action to retain the revenue for the general fund.
The Rock Island City Council voted to continue a 1% municipal grocery retailers occupational tax that the state has moved to repeal, preserving a revenue stream that city staff said contributes roughly $1 million a year to the general fund.
City staff described the vote as a continuity measure: the tax is not a new levy, the presenter said, but rather a local option to keep the 1% portion that would otherwise be removed by the state-level change. City staff member K. Todd told the council that the revenue goes to the general fund and supports core city services, including police, fire and public works.
Council debate highlighted equity concerns. One councilor said the tax is regressive because it applies to groceries and therefore affects all households, and stated they would not support it. Other council members said most neighboring municipalities are taking the same step and that the measure merely preserves existing local revenue.
Roll call: The ordinance (first reading and moved on consent) passed on roll call. The transcript shows Alderson Robinson and Alderman Parker voting no; Hertz, Tweed/Tweets, Swanson, Pulis and Healy voting yes. The mayor declared the motion carried.
Ending: With the vote to retain the local rate, the city will continue receiving an estimated 1% municipal grocery occupational tax to support general operations while state law changes. Staff said funds will continue to be directed to the general fund.
