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Council continues second reading of municipal grocery retail tax; staff stresses continuation, not rate increase
Summary
City staff and aldermen discussed a proposed municipal grocery retail occupation tax during its second presentation, emphasizing that the measure would continue an existing tax, maintain the current 8% rate and route receipts to the general fund. No final vote was recorded at the meeting.
City staff returned to the Quincy City Council to present the second reading of an ordinance implementing a municipal grocery retail occupation tax, stressing the proposal would continue an existing tax rather than create a new one.
During the presentation city staff said the grocery portion of the tax base would “equal roughly $1,100,000,” and that staff would prepare a budget and updated revenue projections in the coming weeks. A speaker identified in the meeting as Mr. Mays asked questions during the discussion.
The presenter told the council the tax has been enforced since 1981 and that, if extended, “the 8% that everybody here is paying now will be 8 percent when the tax is extended. That rate will not go up.” The presenter also said grocery-tax receipts routed to the city go “100% in the general fund,” listing city services funded by sales tax receipts including police, fire, central services, property tax relief and pensions.
Alderman Ryan and other aldermen pressed staff for details on the method used to calculate the grocery portion of the tax base. Staff said the $1.2 million estimate could be conservative and that classification of some retailers’ sales — for example grocery items reported under general merchandise — may mean the actual grocery base is larger. Staff agreed to provide Alderman Ryan and other council members a written breakdown of the methodology and to meet individually to review it.
Council members also clarified the grocery proposal is separate from the city’s food-and-beverage tax. The presenter said the food-and-beverage tax is scheduled to sunset unless the council takes separate action.
No final vote on the ordinance was recorded during the meeting; the item was presented for a second reading and further information was requested.
The council directed staff to provide the requested revenue calculations and to answer classification concerns raised by aldermen. The ordinance’s next formal action was not recorded during the meeting.
