Villa Park board directs staff to draft ordinance to retain 1% grocery tax as state tax ends

The Village of Villa Park’s Committee of the Whole voted by consensus on June 9, 2025, to ask staff to draft a local ordinance to continue a 1% grocery tax after the state’s 1% tax is scheduled to expire on Jan. 1, 2026. Finance Director Susie Mica recommended the local option, citing state reports showing total grocery‑tax‑related receipts tied to Villa Park of $2,913,504.99 for 2024.

“ My recommendation to the board is that we, as the village of Villa Park, should consider implementing the 1% local grocery tax to offset the anticipated loss of the state's 1% grocery tax which is set to expire in January first of 2026,” Finance Director Susie Mica told the board. She said the village historically used the revenue to support public safety, infrastructure maintenance and other municipal services.

Why it matters: Illinois law will allow municipalities to create a local 1% grocery tax by ordinance. The village must submit a certified copy of any local ordinance to the Illinois Department of Revenue by Oct. 1, 2025, to have a tax in place for Jan. 1, 2026. Staff said municipalities that do not act will stop collecting grocery tax when the state tax ends, and the village could face significant budget pressure without replacement revenue.

Details presented and board questions - 2024 receipts: Finance Director Mica highlighted a state report showing $2,913,504.99 tied to the village’s grocery category in 2024 and provided the board with the village’s historical audit amounts dating to 2014. (Susie Mica) - Administrative fee question: staff noted the state historically collected a 1.5% administrative fee for administering the tax and said the village is still clarifying whether that fee will apply if municipalities collect the tax locally. (Finance staff) - New grocery development: Director McLaughlin said the village has approved a building permit for a grocery store build‑out on Roosevelt; the developer has not disclosed the tenant’s name due to an NDA. (Director McLaughlin) - Timing and legal steps: staff explained that to continue a grocery tax effective Jan. 1, 2026, the village must pass an ordinance and submit it to the Illinois Department of Revenue by Oct. 1, 2025; if the village misses the deadline it can still adopt later, with the tax effective either July 1 or Jan. 1 following submission depending on timing. (Village staff)

Board sentiment and vote: several trustees said they preferred moving forward promptly. Trustee Kumar and Trustee Cordova voiced support; Trustee Cordova pointed out grocery prices have risen over recent years and characterized the local 1% as a way to preserve village revenue without raising other taxes. The board took a staff‑referral consensus vote to draft an ordinance. Clerk Laukin recorded responses during the roll call; the transcript records recorded votes as follows (as read into the record): Trustee Constatus: Yes; Trustee Cozart: No; Trustee Kumar: Yes; Trustee Sobri: Yes; Trustee Patrick: Yes; Trustee Cordova: No. Staff interpreted the roll call as authority to prepare a draft ordinance and return it to the board for formal consideration.

Next steps: Manager Rivas said staff will use the Illinois Municipal League template ordinance and produce a draft for the board; the item will be placed on the June 23 agenda for further action. If the board passes an ordinance it must be certified to the Illinois Department of Revenue by Oct. 1, 2025, to maintain collections starting Jan. 1, 2026.

Ending: trustees moved public comments and adjournment after the consensus; the ordinance draft will return to the board for formal consideration at a future meeting.