Naperville Considers 1% Grocery Sales Tax to Replace Eliminated Statewide Tax for Budget Stability

• Naperville is considering a 1% sales tax on groceries to replace a statewide tax being eliminated.
• A preliminary debate took place at a city council meeting on June 17, with further discussions expected.
• City staff, including the City Manager and Director of Finance, recommend continuing the 1% grocery sales tax.
• The Financial Advisory Board supports the proposal, voting 5-1 in favor.
• The Illinois General Assembly passed a bill ending the state’s 1% grocery sales tax, leaving the decision to local municipalities.
• Naperville’s grocery tax contributes $6.5 million to the general fund budget.
• The city is a major destination for grocery shopping, generating significant revenue.
• Eliminating the tax without replacement could lead to service reductions and staff cuts.
• Increasing the home rule sales tax is a possible alternative.
• No formal action was taken, but a report on the home rule sales tax option was supported.
• The home rule sales tax could be increased to 1% in 2026 as an alternative.

Source: nctv17.org

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.

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