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Geneva adopts 1% local grocery tax after Illinois repeal of state grocery tax
Summary
By unanimous roll call, Geneva enacted an ordinance to implement a 1% municipal grocery retailer's occupation tax and associated grocery service occupation tax to replace revenue lost when the state removes a 1% grocery sales tax effective Jan. 1, 2026.
The Geneva City Council on July 7 approved Ordinance 2025‑15 to impose a 1% municipal grocery sales tax, a measure the state authorized after it repealed the 1% state grocery sales tax effective Jan. 1, 2026. The ordinance passed 11–0 by roll call.
Finance Director Milewski summarized staff analysis presented earlier in a special committee meeting: the local tax is intended to offset an estimated revenue loss (staff estimated roughly $700,000 in potential impact) and to preserve funding for the city's general fund. Staff also cited shopper‑origin data indicating roughly 60% of grocery visits to stores in the city come from outside the 60134 ZIP code, suggesting a portion of the tax burden would fall to nonresidents.
Why it matters: The local tax is an authorized option by the state to allow municipalities to recoup revenue lost from the state repeal. City officials said preserving revenue is critical to the municipal budget.
Council discussion was brief; Alderman Gilbert noted the matter had been debated at a prior special meeting and emphasized the need to protect the city's revenues. The ordinance will become effective as provided by state law and the city code.
Speakers and roles are recorded as in the meeting record.
