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Council debates implications of grocery tax elimination; decision possible in October
Summary
Highland councilors discussed how a state-level grocery tax elimination and potential local replacement would affect municipal revenue, clarified a common public misconception that the measure is a new tax, and said a council decision could be considered in October with any replacement effective in January 2026.
Highland’s mayor and city manager used the council’s Sept. 3 meeting to review local implications of a state-level grocery tax elimination and the city’s options for a possible local replacement.
Mayor Kevin B. Hemann told the council the item had been discussed at length at the previous meeting and among area mayors, and said the city needs to ensure the public understands the issue. "The biggest misconception is that this tax is a new tax; this is just replacing the tax that is going away," Hemann said.
City Manager Chris Conrad said some media coverage created confusion by presenting the discussion as a new tax rather than a replacement. Conrad noted the city has until 2025 to make a decision and file any local replacement, and that any such local measure would not take effect until Jan. 2026. He also said the Illinois Municipal League (IML) has lobbied to restore local disbursement funding toward historic levels (about 10%), but that communities with little or no grocery retail may not see dollar-for-dollar replacement of lost revenue.
Council members did not vote on a replacement at the Sept. 3 meeting; City Manager Conrad told the council the matter would not be scheduled for further discussion until the first meeting in October, at which point council could decide whether to proceed to a vote.
The discussion stressed public outreach and clarity: officials said staff will prepare materials and timelines so voters and residents understand the difference between a replacement levy and a newly created tax.
