A POPULAR metropolitan area is racing the clock to vote on whether or not to implement another grocery tax as the old one nears expiration.
Should the new grocery tax be skipped over, shoppers could still see millions of dollars in tax hikes take effect.
GettyOfficials in a key city are eyeing a new grocery tax[/caption] Shoppers could see a hike to their grocery bills if the tax is approvedGETTYConsumers in Illinois are currently faced with a statewide 1% tax on groceries, but Governor JB Pritzker signed legislation last fall to eliminate the tax, effective January 1, 2026.
However, the switch-up does not mean that grocery taxes are a thing of the past in Illinois – local governments, including cities and towns, can now decide to implement their own 1% grocery tax.
Chicago, the most populous city in the state, is currently debating whether or not to impose a city-wide levy.
Mayor Brandon Johnson and his top finance leaders encouraged city council members to implement a Chicago grocery tax soon during a meeting of the City Council’s Revenue Subcommittee on Tuesday.
Electing to bypass the 1% grocery tax would reduce Chicago’s 2026 budget by around $80 million, worsening the city’s already nearly $1 billion budget gap, according to budget director Annette Guzman.
“We must reaffirm the grocery tax before the state’s deadline,” she told the nine city council members at the hearing.
Chicagoans were not pleased about the prospect of the 1% city grocery tax, expressing their frustrations online.
“I’m glad I live in the burbs, screw that thief,” fumed one Facebook user, as another cried that a grocery tax was “regressive” and a “burden on the poor.”
A third resident complained that grocery taxes punished Americans for saving money and trying to eat healthy, calling the potential 1% city tax a “typical terrible policy from the joke that is this mayor.”
“Politicians that do nothing but tax, tax, tax. It’s theft,” blasted another user.
Mayor Johnson, however, argued that Chicago would not be creating a new grocery tax, but rather re-implementing one that already exists but is set to expire.
“There is a process in which the collection of the grocery tax is now being placed in the responsibility of municipalities, right?” the mayor said at a city hall news conference.
“So it was a function that the state of Illinois decided to relinquish, and leave it to the cities to collect the tax. So we’re not creating a grocery tax, we’re just creating a process by which we can collect it.”
TAXING TIMES
Governor JB Pritzker announced in August 2024 that he would eliminate the 1% grocery sales tax in Illinois, arguing that it was regressive and especially harmful to lower income families.
There is a process in which the collection of the grocery tax is now being placed in the responsibility of municipalities. It was a function that the state of Illinois decided to relinquish, and leave it to the cities to collect the tax. So we’re not creating a grocery tax, we’re just creating a process by which we can collect it.”
Brandon JohnsonChicago MayorAlthough the move will eliminate the statewide grocery levy, Illinois lawmakers approved a budget that included nearly $750 million in tax increases to balance the budget.
Chicago receives a substantial amount of revenue from the state’s grocery tax, so should the city choose not to implement its own 1% grocery tax, it would likely need to roll out major tax hikes.
Over 150 communities across Illinois have already elected to impose local grocery taxes, leaving many state residents to soon pay the same fees, but to a different governing body.
In Chicago, Mayor Johnson and the city council have yet to make their final decision, but face an October 1 deadline in order for the city tax to take effect when the statewide levy ends at the start of 2026.
“If we fail to do the same, we will leave critical services on the chopping block,” said Chicago’s budget director.
Although October 1 appears a ways away, the deadline is closer than it seems.
The proposed law still needs to be formally introduced and is likely to encounter delaying tactics from opponents.
Additionally, it needs to secure a majority vote in the City Council by the end of September, complicated by the fact that city council members usually take their annual vacation in August.
As Chicagoans potentially face spikes to their grocery bills, Americans across the country are seeing higher prices at the grocery store due to tariffs.
For example, Walmart and Target are using a sneaky way to “hide cost hikes” as employees admit they’ve been “tearing off tags.”
The Macy’s CEO has also revealed a huge shakeup to fan favorites and confirmed an “aggressive” stance on price hikes.
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