The Monticello City Council debated and ultimately rejected a municipal grocery and service occupation tax proposed under Ordinance 2025-63 during its Nov. 24 meeting.

Staff and council discussed revenue estimates but agreed concrete figures were uncertain. A memo cited an estimated impact on general sales tax receipts of $200,000, though one council member described a more conservative FY2026 projection of about $50,000. Council members said existing sales-tax reporting does not reliably isolate grocery sales, making precise forecasting difficult.

Concerns about fairness and regressivity were raised. "This tax is a progressive tax. I'm not for it. I don't like the idea of taxing people based on stuff they need to feed their families," one council member said, opposing the measure on equity grounds.

In the roll-call vote the council was split, producing a tie; the presiding officer recorded that the motion failed. The transcript later records the mayor casting a vote of 'no' when asked, and the motion remained unsuccessful. The council did not adopt the municipal grocery or service-occupation taxes at this meeting.

What’s next: Staff and council members did not specify a follow-up timetable in the meeting; given the uncertainties in revenue estimates cited during discussion, any future proposal would likely be accompanied by additional financial analysis.