Lindenhurst board adopts local grocery tax to avoid $96K–$108K annual revenue loss

The Lindenhurst Village Board on Aug. 25 adopted Ordinance 25-7-2324 to establish a local grocery retailers’ and service occupation tax, a move village leaders said is required to avoid a projected annual revenue lapse of $96,000–$108,000 after state law changes take effect Jan. 1, 2026.

Village officials said Public Act 103-781 eliminates a state-allocated 1% sales tax portion used by local governments unless municipalities re-enact the tax locally. Per Illinois Department of Revenue guidance cited at the meeting, municipalities must enact the tax by October 2025 to prevent an interruption in that revenue stream.

Trustee Pat Dunham moved to adopt the ordinance, and Trustee Ron Grace seconded. The motion passed on a roll-call vote, five ayes to one nay; Trustee Pat Dickson voted no. Village materials prepared for the board estimated the annual loss if no local tax were adopted at $96,000–$108,000 and warned that the shortfall would reduce funding for capital projects, including the village road program, by roughly half.

Board packet notes and a Finance Committee review — the committee voted 2–0 with one abstention to recommend adoption — were cited during the discussion. Village staff framed the measure as preserving locally controlled capital funding streams rather than creating a new local policy choice.

Members of the public asked for follow-up information about the grocery tax during the meeting’s public-comment period; the village did not specify implementation details such as effective date language beyond the ordinance action at the Aug. 25 meeting.

By adopting the ordinance, the board acted to align local code with state guidance and to maintain the revenue stream referenced in the village’s financial analysis. Additional administrative steps and public notices required for collection were not detailed at the meeting.