Sixteen days before the state deadline, City Council passed a local grocery tax 5-3 without discussion at a special council meeting Monday.
The 1% tax on groceries will replace the state tax of the same rate, which is set to expire on Jan. 1, 2026. The city receives about $2.5 million annually in revenue from the tax, according to city staff.
Council postponed its vote on the ordinance twice because councilmembers disagreed on whether a local grocery tax was the best way to continue gathering these funds.
City staff also proposed increasing property taxes, increasing local sales taxes or eliminating $2.5 million in city spending as potential options.
Ald. Jonathan Nieuwsma (4th), who moved to adopt the ordinance, has said that the city will most likely increase property taxes in the future, so substituting it for a grocery tax will not make up the lost revenue.
Those against the local tax — Alds. Clare Kelly (1st), Parielle Davis (7th) and Matt Rodgers (8th), as well as Mayor Daniel Biss — have cited the regressive nature of the tax as the primary reason not to pass the ordinance.
The three councilmembers opposed the ordinance on Monday. Ald. Bobby Burns (5th) arrived at the meeting late and accordingly did not participate in the vote.
On Monday, Biss told The Daily that he plans to veto the council’s approval. To override the veto, six councilmembers will need to vote in favor of the ordinance at the next council meeting on Sept. 29.
Several nearby municipalities have also passed replacement local grocery taxes, a task that must be completed and sent to the Illinois Department of Revenue by the state’s Oct. 1 deadline to count.
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