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Council told state grocery-tax cut will shave roughly $600,000 from local receipts
Summary
Staff explained Illinois’ elimination of a 1% grocery tax will reduce local revenue and said the city chose not to adopt a local replacement; staff provided a rough estimate of the local revenue loss and illustrative per-household savings.
City staff told the council that a state decision to eliminate a 1% grocery tax will reduce local municipal revenue beginning Jan. 1, 2026. Presenter S2 said the city did not implement a local grocery tax and therefore expects a reduction in revenue tied to the state action.
S2 characterized his revenue estimate as preliminary and based on limited state guidance, but he presented a mid-range figure as an example and an illustrative per-household savings figure. "With that loss of $600,000 each individual is gonna save about just under $21 a year," he said, and noted about 12,500 households in the city would translate into a per-household annual savings figure.
Councilors asked clarifying questions about how many municipalities adopted their own grocery taxes and how adoption was reported; staff cited Illinois Municipal League reporting and said at least several hundred municipalities had adopted local measures in prior months. Staff emphasized uncertainty in the exact local revenue impact and said they used a conservative midpoint estimate for budgeting.
No formal decision was taken during the session; staff said the topic would be considered within upcoming budget deliberations and that the city’s draft CY2026 spending plan reflects the estimated revenue change.
