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Lisle board directs manager to seek state support against eliminating grocery sales tax

Village of Lisle Village Board · March 5, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Trustees authorized a letter to the village's state legislators opposing the proposed elimination of the state grocery sales tax, citing an estimated municipal revenue impact of roughly $275,000 for Lisle and concerns about unfunded mandates disproportionally affecting non‑home‑rule communities.

At its March 4 meeting the Lisle Village Board directed the Village Manager to draft a letter to the state legislators who represent the village asking them to oppose proposed budget language that would eliminate the 1% local grocery sales tax. Village staff said the change could reduce municipal revenue, estimating an approximately $275,000 impact to the village based on local retail patterns (Jewel, Aldi and smaller convenience stores) and IML modeling provided in the meeting packet.

Trustees discussed tradeoffs. Some board members supported removing the tax as regressive for consumers, while others said the state should not eliminate a revenue source used by municipalities without providing a replacement or granting local governments new authority to replace the revenue (for example by conferring home‑rule powers when the state removes a municipal revenue source). Several trustees emphasized the differential impact on non‑home‑rule communities, which generally cannot replace a state tax without voter approval or other statutory authority.

The board approved the motion directing staff to send letters to the village’s six state legislators asking them to oppose the proposal. The mayor also said he would press for language enabling municipalities to replace lost revenue or, alternatively, to seek an unfunded‑mandate remedy. Trustees raised concerns about use of the phrase "food desert" in the packet and urged care with terminology; staff clarified the analysis was per‑capita spending and voluntary reporting to IML rather than a formal food‑access designation.

What’s next: Staff will prepare and send the board‑authorized letter to the legislators representing Lisle. Trustees said they may consider a model resolution from the Illinois Municipal League at a future meeting.

Quote: “When there is a threat to municipal revenue, that is of concern,” Village Manager said during the presentation, noting the village’s interest in stable revenue streams used to support local services.