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Finance committee directs staff to prepare local 1% grocery tax for council review
Summary
After public comment and debate about alternatives, the West Chicago Finance Committee asked staff to draft an ordinance to retain a 1% grocery tax locally and review its effect after one year; the committee signaled unanimous support in a show of hands.
The West Chicago Finance Committee on Monday directed staff to prepare a council ordinance to continue a 1% local grocery tax—essentially moving the state-collected grocery tax to a city-administered 1%—and to review its budget impact after one year.
The decision came after a public comment urging more data and deliberation and a series of committee remarks weighing two main options: keep the 1% grocery tax or replace it with a broader home-rule sales tax (often discussed as a 0.25% city sales-tax increase). Louise Bridal, a public commenter, urged the committee to gather more evidence before acting, saying the body needs “an abundance of data and enough time for thoughtful discussion” to understand how a state suspension or change in the grocery tax affected municipal revenue and whether lower-income shoppers would actually benefit.
Committee members repeatedly said the grocery-tax option is the least disruptive near-term choice. One committee member recommended keeping the 1% grocery tax and re-evaluating after the next budget year to see the practical effect on residents. “The taxes in this state or the state taxes are what's driving everything to where we are right now,” Alderman Hallett said, urging the committee to preserve revenue to avoid layoffs or deep cuts to city services.
Speakers raised several practical questions: whether necessity items or SNAP purchases could be exempted under a different tax structure; how much of any new retail tax would be paid by nonresidents; and what specific budget lines would be cut if the city absorbed the lost grocery-tax revenue. A committee member cited a $425,000 estimated revenue gap if the grocery tax were eliminated; staff said they would prepare options for council consideration and that the council would direct any cuts.
Staff provided a list of local grocery stores that currently fall under the grocery-tax classification, including Aldi; Carneceria Jimenez; Jewel Food Store; Super Mercado La Chiquita; Super Mercado Tempico; Dollar General; and La India Grocery. Staff also summarized peer decisions in DuPage County: Batavia, Carol Stream, Downers Grove, Elk Grove Village, Glen Ellyn, Schaumburg, Westmont and Wheaton have retained grocery taxes, while Bartlett and Streamwood have not; Naperville was reported still considering options.
After discussion the committee asked staff to draft a document for the full city council that would implement the 1% grocery tax at the city level and include a commitment to review its impact after one year. The chair called for a show of hands; no committee member opposed. The meeting then moved to other business and adjourned.
What happens next: Staff will prepare the ordinance and fiscal analysis for the council; the committee’s direction does not by itself change tax law—the full city council must vote to adopt any ordinance.
