Eye On Illinois: Local governments beginning to reinstate grocery tax

Vote by vote, the local control plan is working.

Earlier this year, lawmakers voted to stop collecting the 1% tax on grocery sales as of Jan. 1, 2026. That wouldn’t affect the state budget because 100% of that revenue was given back to local governments. But instead of completely shutting off the income stream, the General Assembly also allowed municipalities to replace the tax with a simple vote rather than by public referendum.

With the clock ticking and the budget shortfall approaching, some governments are doing just that: the Normal Town Council voted 4-3 in September to put its own grocery tax in place, preserving about $2.3 million, according to WEEK-TV. The Pekin City Council followed suit earlier this week, also on a 4-3 vote. That community stood to lose $1.7 million.

I’m no political strategist, but now is the time to take such actions. We’re still more than a year out from the change, and shoppers won’t actually experience anything different. The alternative approach is letting the state tax expire and hoping the revenue drop doesn’t actually affect operations. But by then, reinstating the tax might feel more like something new than simply local officials taking over what had been a state responsibility.

Perhaps the choice is more delicate in areas where corporate boundaries are nebulous. Two of my regular grocery retailers are on the east side of a state highway in one town, while two other options are on the west side in another ZIP code. But I already drive to whichever has the best price on cucumbers or sells a particular brand of pretzels, so a penny per dollar is unlikely to hold much sway.

Remember, the state suspended the tax statewide for all of fiscal 2022. In so doing, it agreed to cover the shortfall for local governments, which ended up costing $252 million. With 12.5 million Illinoisans, that’s $20.16 per person – almost 39 cents per week. Certainly, there are people who don’t qualify for government aid for grocery purchases but find $20 per year meaningful. But that population isn’t going to move the political needle away from the type of budget cuts a community might need to cover a seven-figure budget hole.

A city council could choose to put the question to the entire community on the 2025 consolidated ballot, inviting meaningful discussion about civic involvement and voter turnout. Still, it would also balance against the procedural expense and shrink the timeline for dealing with consequences.

Making these types of choices comes with the responsibility of elected office. The situation reinforces why it matters who we choose to lead our towns. And state legislators are proven correct: ceding control won’t cost them anything.

• Scott T. Holland writes about state government issues for Shaw Local News Network. Follow him on X @sth749. He can be reached at sholland@shawmedia.com.