Council holds first reading on municipal grocery tax; staff to present revenue analysis

City Council conducted the first reading of an ordinance that would implement a municipal grocery retailers occupation tax and a municipal grocery service occupation tax for the City of Quincy.

Council members and staff framed the item as a continuation of an existing 1% sales tax component the state plans to relinquish to municipalities. Finance and city staff said the ordinance is under review to determine whether the city will “pick up” the 1% locally. Staff told the council the tax historically generated roughly $1.2 million annually from the grocery component within a broader sales‑tax base and that more detailed revenue analyses would be provided prior to final consideration.

Council members requested additional data, including how grocery spending and prices have changed in recent years, the effect on overall sales-tax receipts, and options such as taxing at a lower rate than 1% or not continuing the tax. City staff (identified in the meeting as Jeff and working with Treasurer Sherry and Kelly Stepaski) said they will prepare a brief revenue presentation for the council, including a multi-year look‑back and projections, and that the timeline for readings was set so the council could finalize its decision before the treasurer’s revenue presentation in early March.

The ordinance was placed on first reading for discussion only; the city clerk and staff said second reading would occur at the council meeting on Feb. 18 and third reading at the last meeting of the month unless the council changes the schedule. Staff encouraged aldermen to submit questions in advance to be included in next week’s presentation.