Glenview trustees weigh keeping 1% grocery tax as state phase-out nears

Glenview — The Board of Trustees on Aug. 5 debated whether to continue a 1% municipal grocery tax after the state’s planned elimination of its comparable tax, a change staff says could leave the village with an approximate $2.7 million revenue shortfall.

Village staff member Jillian told the board the state-collected grocery tax will be eliminated effective Jan. 1, 2026, and said the village can preserve the revenue stream only if it adopts an ordinance to continue a 1% municipal grocery tax and submits it to the Illinois Department of Revenue ahead of an Oct. 1 deadline. "Staff is requesting board direction regarding the 1% elimination of the state 1% grocery tax," Jillian said.

Trustees split along familiar policy lines. Trustee Bland argued the grocery tax is regressive and said the village should consider taxing "nonessential items" instead, such as alcohol or prepared foods: "Based on principle, I'd rather see nonessential items get taxed." Bland noted the village’s diversified revenue and suggested the change could help recoup downtown redevelopment investments but acknowledged timing and transition issues.

Trustee Cooper said a restaurant or food-and-beverage tax was an "intriguing" alternative that staff should analyze; staff projected a 1% food-and-beverage tax could generate roughly $1.7 million, leaving a remaining gap the board would need to address. Trustee Jones urged caution and recommended keeping the grocery tax now and revisiting the question in one to two years after new downtown restaurants open and actual revenue numbers become available. Trustee Sidoti and Trustee Davani also favored maintaining the tax for the near term, citing uncertainty in the $2.7 million estimate and the desire to avoid cutting services without complete data.

President Jenny framed the choice as both a policy and political question and said the board will treat tax policy during the regular budget workshop cycle. After discussion the board did not adopt an ordinance; President Jenny said staff had "the direction they need" to bring further analysis and recommendations ahead of the budget workshops.

What’s next: Staff will refine the revenue estimates, analyze options (including a food-and-beverage tax or adjustments to fund balance policy), and present findings during the village’s budget workshop schedule in September and October. No formal ordinance was adopted on Aug. 5.