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Lombard board adopts 1% municipal grocery tax to replace state levy
Summary
The Lombard Village Board voted to adopt an ordinance implementing a 1% municipal grocery retailers occupation tax to replace a state 1% grocery tax that will be eliminated; trustees said the change preserves about $1.3 million in annual revenue but agreed to continue reviewing local impacts.
The Lombard Village Board voted to adopt an ordinance implementing a 1% municipal grocery retailers occupation tax to replace a state 1% grocery tax that the board was told will be eliminated.
Board members said the move preserves roughly $1.3 million in annual revenue that would otherwise be lost. A village staff member told trustees, “what we're talking about is $1,300,000 which would no longer be available to us effective January 1 of 2026.”
The ordinance was described in meeting materials as a local replacement for the state levy; trustees said the change is not a new tax but a replacement for revenue the village expects to lose. Trustee Puccio moved to adopt the ordinance and Trustee Bochner seconded the motion. The motion carried on a roll-call vote with Trustees Puccio, Dudek, Malauulu and Wagner recorded as voting “aye.”
Trustees who supported the ordinance said preserving the revenue is important to avoid future budget shortfalls tied to planned public-safety building projects and other commitments. One trustee said the board has until September to finalize details and that staff and trustees would continue to seek information on whether neighboring communities are taking similar steps.
Meeting materials and a staff presentation noted the village's finance analysis found about 40% of the grocery tax the village collects comes from shoppers who do not live in Lombard; board members said that feature made the tax a priority because it brings outside revenue into the village without increasing property taxes.
Although trustees voted to adopt the ordinance, several said they wanted to continue reviewing potential competitive impacts (for example, whether Lombard would be the only nearby municipality with the local grocery tax) and other options before final implementation.
The ordinance was brought forward as an item listed under “ordinances on first reading” in the meeting packet; the board voted on the motion during the same meeting. Further implementation details, including an effective date and administrative steps, were not specified in the public discussion.
