Marengo Council votes to enact 1% grocery tax, with state’s set to end next year

Marengo is the latest McHenry County municipality to add back a grocery tax after the tax statewide is set to go away next year.

The legislation abolishing the tax statewide also created a mechanism for municipalities to be able to add a 1% grocery tax without needing to go to the voters, and several local communities are considering adding the tax back.

The Marengo City Council, by a 6-1 margin, approved a new 1% grocery sales tax in town this week. According to city documents, that state grocery tax has provided the city with about $260,000 in revenues annually.

Crystal Lake opted last year to add an additional half-percent to its local sales tax to prepare for potential losses from the end of the state grocery tax. The extra tax is expected to add an extra $4.55 million per year, intended to fund more police officers and firefighters, according to city officials.

Other municipalities, including Cary, are also considering imposing a grocery tax. Cary voters turned down a sales tax increase last year.

Marengo, which is not home rule, previously asked voters in the March 2024 primary election to consider a 1% sales tax that would go to fund roads and infrastructure. The electorate said “yes” by about a 55-45% margin. In exchange, the city dropped vehicle stickers.