Anticipating loss in revenue when the state repeals its grocery tax beginning Jan. 1 of next year, the Village of Plainfield is taking steps to make sure the coffers remain full.
The Plainfield Village Board on Monday implemented the village’s own grocery tax at 1 percent, which is the same as the state.
Until Jan. 1, the State of Illinois will continue to collect a 1 percent on groceries and give the money back to municipalities.
Traci Pleckham, assistant village administrator and director of management services, said four of Plainfield’s top 10 tax generators for revenue are grocery based.
So far, 187 communities in Illinois, including 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 to state revenues,” said Pleckham.
“Municipalities will continue to receive this revenue in 2025, and each municipality will assess whether to let the grocery tax expire, reinstate the local grocery tax or discuss avenues for other revenue replacement options,” she continued.
Based on prior figures, Pleckham estimates the Village of Plainfield collected between $1.25 million to $2 million in 2024 for grocery taxes.
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 grocery tax.
Alcoholic beverages, candy, soft drinks and foods consisting or infused with adult use cannabis do not qualify for the state sales tax exemption.
As of May, Joliet, Bolingbrook, Crest Hill and Romeoville have not acted on whether to implement a local grocery tax.
