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Oswego trustees direct staff to prepare ordinance to continue 1% local grocery tax
Summary
Village staff will return an ordinance on Sept. 16 to continue a 1% local grocery tax after trustees agreed keeping the revenue stream will help cover rising costs such as police-pension contributions. Trustees asked staff to present options for how to allocate the funds, including rebating part to residents as a water-bill credit.
Oswego trustees instructed staff to draft an ordinance to continue a 1% local grocery tax and said staff should return to the board with options for how the revenue would be used.
Andrea, a village staff member, told trustees the state repealed its 1% grocery tax effective Jan. 1, 2026, and that state law now allows municipalities to adopt a local 1% grocery tax by ordinance if adopted prior to Oct. 1, 2025, in order to implement it on Jan. 1, 2026. Andrea said the village received about $914,000 in grocery-tax revenue in 2023 and $967,000 in 2024, and estimated roughly $1,000,000 in 2025 and slightly more in 2026.
The board discussed how to use the revenue if the municipality continues the tax. Andrea said the village faces pressure from police-pension obligations: the current property-tax levy is devoted to the pension contribution but does not…
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