Following on the footsteps of action taken by neighboring communities, the Joliet City Council on Tuesday approve its own grocery tax at 1 percent, which is the same as the state tax.
But it took a tie-breaking vote from Mayor Terry D’Arcy to pass the measure.
Until Jan. 1, the State of Illinois will continue to collect 1 percent on groceries and give the money back to municipalities.
The state has been imposing the 1 percent grocery sales tax since 1990. House Bill 3144 eliminated the grocery tax but allowed local jurisdictions throughout the state to impose local sales tax on food for home consumption, such as boxes of pasta, bags of rice, cooking oils, fruits and vegetables.
Illinois lawmakers are putting an end to the grocery tax as part of the state budget for fiscal year 2025. Illinois will join 37 states that don’t have a grocery tax. Illinois Policy Institute polling showed 70 percent of voters supported eliminating the grocery tax.
Alcoholic beverages, candy, soft drinks and foods consisting of or infused with adult use cannabis do not qualify for the state sales tax exemption.
So far, more than 250 communities in Illinois, including Plainfield, Shorewood, Morris and Naperville, have already passed ordinances to implement a local grocery tax. Municipalities have until Oct. 1 to pass such ordinances and submit it to the Illinois Department of Revenue.
The State of Illinois does not receive any funds from this 1 percent grocery tax, as it is entirely passed on to local governments and has no impact on state revenues, according to city officials.
While municipalities will continue to receive this revenue in 2025, each community must assess whether to let the grocery tax expire, reinstate the local grocery tax or discuss avenues for other revenue replacement options.
In the City of Joliet, grocery taxes account for about $3.7 million of its revenue, according to Kevin Sing, finance director. Not having access to that revenue, he says can potentially lead to budget cuts and reduced municipal services.
“The 1 percent grocery tax has been in place for decades,” said Sing. “Joliet, like many communities across Illinois, relies on the grocery tax as a consistent, reliable source of funding.
Preserving this funding locally ensures we can continue investing in critical services,” he continued. “As we enter our 2026 budget process, the elimination of this revenue will have a negative impact on our ability to fund these critical services while continuing the city’s commitment to resurface local roads and sidewalk replacements,” added Sing.
While the individual cost is small, just $1 on a $100 grocery bill, the collective impact is significant, generating millions annually for Joliet’s most vital functions, Sing said. Because grocery purchases remain steady year-round, this tax offers a stable, predictable source of funding, even during economic downturns.
More Importantly, Sing explains, grocery purchases made with Supplemental Nutrition Assistance Program (SNAP) and other assistance programs are exempt from the tax, ensuring protection for low-income households while supporting the broader community’s needs.
Larry Hug, who represents District 1, said the city is never going to eliminate positions in police and fire departments if the tax isn’t reinstated.
“People right now are going through their home budgets with a fine-tooth comb,” said Hug. He said a family member once told him, “Take care of pennies, but dollars will take care of themselves.”
Councilwoman Jan Quillman agreed with Hug that people must make tough choices when prices like fruits and vegetables and energy are out of control. Joe Clement and Juan Moreno also voted against the measure Tuesday.
People are just getting by, said Quillman. There are people on fixed incomes, who don’t get raises every year.” “They are deciding between buying medicine or groceries.”
