Northern Illinois Towns Adopt Local 1% Grocery Tax Before Deadline

As of October 1, 2023, numerous communities in northern Illinois have enacted a local 1% grocery tax to replace the expiring state tax that will cease on January 1, 2024. This action allows these municipalities to maintain funding for local services previously supported by the state tax.

The statewide grocery tax, introduced to assist local governments, has been a critical revenue source. In light of its impending expiration, communities were required to pass ordinances by the October deadline to implement their own grocery taxes starting next year. According to the Illinois Department of Revenue, a total of 646 municipalities opted to adopt this local tax, which represents nearly half of the state’s 1,295 municipalities.

Local city councils and village boards were tasked with submitting their tax ordinances to the Department of Revenue. Municipalities that missed the October deadline have the opportunity to establish their own grocery taxes twice a year, with ordinances submitted by April 1 taking effect on July 1, and those submitted by October 1 starting on January 1.

Among the municipalities that decided to extend the grocery tax are towns from various counties, highlighting a widespread commitment to local fiscal stability. The following is a selection of towns across several northern Illinois counties that have adopted the tax:

List of Towns Enacting the Grocery Tax

– **Bureau County**: Annawan, DePue, Ladd, Princeton, and more.
– **Cook County**: Chicago, Arlington Heights, Cicero, and others.
– **DeKalb County**: DeKalb, Genoa, and Sycamore.
– **DuPage County**: Aurora, Naperville, and Wheaton.
– **Lake County**: Waukegan, Grayslake, and Libertyville.
– **Will County**: Joliet, Bolingbrook, and Frankfort.

This tax decision comes as a response to the need for continued funding in various community projects and services, which rely significantly on local revenue. Many local leaders emphasize that maintaining this tax is crucial for ensuring that essential services remain intact.

As local governments navigate shifting financial landscapes, the adoption of the grocery tax reflects proactive measures taken by these communities to secure their fiscal futures. This move illustrates the importance of local governance in responding to changes at the state level, allowing municipalities to tailor their financial strategies to meet specific community needs.

The Illinois Department of Revenue continues to monitor the situation as these local taxes come into effect, ensuring compliance and providing necessary support to municipalities in this transition.