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Fox River Grove board adopts 1% municipal grocery tax to replace state levy
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Summary
The Village Board on Aug. 5 approved Ordinance 2025‑17 to implement a 1% municipal grocery sales tax effective Jan. 1, 2026, after staff warned the Village could lose roughly $175,000 annually if it does not act.
The Fox River Grove Board of Trustees voted unanimously on Aug. 5 to adopt Ordinance 2025‑17, allowing the village to impose a 1% municipal grocery sales tax beginning Jan. 1, 2026. Administrator Soderholm told trustees that state legislation repealed the statewide 1% grocery sales tax and that the repeal would remove approximately $175,000 in annual revenue that had been passed through to municipalities.
Trustee Steve Knar said he supported the ordinance and criticized state lawmakers for shifting revenue decisions, describing the change as frustrating for local governments that rely on predictable revenue streams. Trustee Jennifer Curtiss seconded the motion; the roll call vote was unanimous.
The ordinance implements the local option authorized in the state repeal and is scheduled to take effect at the start of 2026. The Board did not specify a detailed revenue allocation plan during the meeting; staff indicated the municipal tax is intended to replace the lost pass‑through revenue. The vote followed a brief presentation by Administrator Soderholm explaining the statutory change and its estimated budget impact.
Next steps listed by staff include final ordinance publication and incorporation of the projected revenue into upcoming budget materials. No amendments or public testimony specific to the ordinance were recorded during the meeting.