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Ordinance to replace state grocery tax wins approval; village to retain 1% grocery revenue
Summary
Trustees approved Ordinance 25-09 to replace the state grocery tax locally so the village continues to receive the 1% grocery tax revenue after a state-level sunset; staff said the change "won't feel for anyone like a tax increase" because it preserves the existing rate at checkout.
The Davis Junction Village Board voted to approve Ordinance 25-09 on April 25, 2025, a local measure to replace a state grocery tax so municipalities retain 100% of the 1% grocery revenue after the state's sunset. Staff (S8) told the board the change is intended to preserve the current tax level for shoppers while routing the existing 1% to the village.
During discussion S8 explained that the measure is effectively a pass-through that "won't feel for anyone like a tax increase. It will simply be maintain the existing level, of taxes at the grocery store on your essential items." Board members asked for clarification about which items are affected (goods vs. certain service‑type grocery sales) and about the village's expected revenue, and staff acknowledged municipal-level receipts vary by community and depend on local retail mix. The ordinance passed following roll call.
The ordinance requires state notice before taking effect; staff noted it will not take effect until January 1 of the implementation year and the state must process the technical paperwork.
