Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Policy topic
No spam. Unsubscribe anytime.
Council to seek ordinance as state replaces 1'cent grocery tax; chair cites $1.2 million local revenue last year
Summary
The council agreed to ask the city attorney to draft an ordinance to preserve or replace a local 1'cent grocery tax before the state'level change effective Jan. 1, 2026; the chair said the tax returned about $1.2 million to the city last year.
The Lebanon City Council committee agreed to ask the city attorney to draft proposed language aimed at preserving the local grocery sales-tax authority after the state'level change takes effect. The council's chair said the state will eliminate the current structure but allowed nonhome-rule communities the option to levy a replacement; he told members the city must complete the local process by August for the state to recognize the change.
"It's a maximum of 1¢ tax on groceries that was there going away," the chair said, adding that "Last year, it was $1,200,000." Council members said they will involve the city attorney and return next week with a proposed ordinance.
A councilmember who reviewed state language reminded the group that Illinois taxes groceries for home consumption differently from prepared foods; items like milk, butter and produce are treated under grocery tax rules while prepared foods such as pizza are taxed under a different code. Council discussion focused on timing and drafting rather than on specific rate changes; no formal vote was taken during the meeting.
Next steps: the chair said he will ask the city attorney to draft an ordinance for consideration at the next meeting so the city can meet the state timeline.
