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Oswego board votes to retain 1% municipal grocery tax, debates how to spend proceeds
Summary
The Village of Oswego voted to keep the 1% municipal grocery retailers and service occupation tax that state law would otherwise eliminate on Jan. 1, 2026. Trustees discussed using some revenue for water-bill rebates or transferring dollars to the water fund and scheduled a follow-up at the Oct. 25 budget workshop.
The Village of Oswego Board of Trustees voted unanimously on Sept. 16 to retain the municipal grocery retailers occupation tax and the grocery service occupation tax — a 1% levy on groceries that staff said yields roughly $1 million annually for the village.
Dan (village staff) told trustees the state passed legislation that would end the municipal grocery tax on Jan. 1, 2026 unless municipalities affirmatively vote to keep it. "The grocery tax has been in place in the state of Illinois for many decades. It is a 1% tax on groceries," Dan said, and "on 01/01/2026, the grocery tax goes away unless municipalities…
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