VATupdate

Share this post on

Northern Illinois Leaders Debate Reinstating Local Grocery Tax to Offset Revenue Losses

  • Northern Illinois leaders are considering reinstating the grocery sales tax locally.
  • Illinois will eliminate the 1% grocery sales tax starting January 1, 2026.
  • DeKalb City Manager Bill Nicklas anticipates losing $800,000 in annual revenue.
  • The grocery tax supports general operations like personnel, fire, police, and public works.
  • Governor JB Pritzker supports eliminating the tax to address high prices.
  • Municipalities can choose to keep the tax despite the statewide elimination.
  • Rochelle and other communities are considering reinstating or reducing the tax.
  • DeKalb has two options: keep the tax or let it discontinue.
  • Nicklas acknowledges the tax’s elimination may benefit families but focuses on budgeting.
  • Illinois cities and towns could lose $350 million in funding starting January 1.
  • Durand Mayor Sheila Hoffman anticipates losing $50-70,000 in annual revenue.
  • Hoffman notes the potential financial benefit for residents without the tax.
  • Decisions on reinstating the tax depend on council choices and public feedback.
  • Nicklas emphasizes the need for more research and data for decision-making.

Source: wifr.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

Sponsors:

VAT news
VATIT Compliance

Advertisements: