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Kane County board keeps grocery tax in unincorporated areas, citing uncertain revenue
Summary
The board voted 9-8 to adopt an ordinance preserving the county grocery tax in unincorporated areas after the state eliminated that portion of the sales tax at the state level; county staff said revenue estimates range from $40,000 to $400,000 and exact amounts cannot be separated in state reporting.
The Kane County Board on Oct. 22 adopted an ordinance, by a 9-8 vote, to maintain a grocery-related sales tax in unincorporated areas after the state eliminated that component of the state sales tax effective Jan. 1, 2026.
County staff told the board the state’s reporting categories do not isolate grocery sales from other categories, so the Illinois Department of Revenue cannot supply a precise figure for unincorporated grocery receipts. Kathleen Hopkinson said peer jurisdictions estimate the unincorporated revenue impact could range from roughly $40,000 to $400,000.
The discussion focused on who pays the tax and how much it would generate. Several public commenters questioned whether the county or the state would retain most of the revenue and asked which retailers would be affected. "Do you even know what businesses are affected by this? Has anyone actually read the statute? 55 ILCS 5/5-1006.9 regarding the grocery tax," asked Ginger Romano during public comment, citing the state code number she had reviewed.
Hopkinson explained the state will stop collecting the grocery tax under the state sales tax, but that the RTA (Regional Transportation Authority) sales tax will still include a grocery component. The county’s action will effectively keep the local portion of the grocery tax in place for unincorporated areas; Hopkinson said local governments that have kept the tax on have used estimates when calculating revenue.
Supporters argued the revenue would be modest but helpful given deep cuts elsewhere in the budget. "We're cutting to the bone. Let's give them this little bit," said one board member, noting the county’s fiscal pressures.
Opponents called the tax regressive and said it would add to the cost of essentials for low-income households. "It's disingenuous to minimize tax increases because it isn't just one tax that is taking more money every year," said one resident referencing multiple cost pressures.
The ordinance was identified on the agenda as ordinance 25-382. The roll call produced nine votes in favor and eight opposed; the measure passed.
