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Moline council approves municipal grocery tax to offset state cut
Summary
The Moline City Council voted to adopt municipal grocery retailers and service occupation taxes after staff presented modeling that a 1% state reduction could cost the city roughly $1 million and reduce the general fund toward historic minimums.
The Moline City Council approved an ordinance to implement a municipal grocery retailers occupation tax and a municipal grocery service occupation tax after staff said a state-directed 1% reduction in grocery-related sales tax would materially reduce the city's general fund balance.
City staff presented modeling showing a projected loss “we used best information we had available and made the assumption that it would be a million dollar loss, it may be greater,” said Bob Vitas, city staff, describing how the Finance group modeled the potential shortfall and the limits of…
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