New law doing away with state sales tax on food in Illinois

I just saw on the news that Governor Pritzer just signed a bill doing away with sales tax on food at grocery stores in Illinois I am not sure when it is going to go into effect. I assume that there is still going to be sales tax charged on prepared foods, such as most of the stuff you get at the deli at Jewel. The state sales tax on food is currently 1%, and it will officially go away on1/1/2026. Apparently individual communities in Illinois can have the tax reinstated in their city if they so desire.

Paragraph from Capital News Illinois via chicagobusiness.com

As part of state budget negotiations this year, lawmakers approved Pritzker’s plan to eliminate the statewide 1 percent grocery tax beginning in 2026. He signed that provision into law on Monday.

The revenue from the state grocery tax goes to municipal governments, rather than state coffers. To make up for those lost revenues, the law allows counties and municipalities to levy their own 1 percent grocery taxes by passing an ordinance, rather than needing a referendum.

It also gives non-home rule municipalities the authority to impose sales taxes by up to 1 percent without a referendum.

Note that other entities such as the RTA tax groceries. The total in Chicago is 2.25% now. I will be stunned if most municipalities do not pass their own 1% tax.

ekreider wrote:I will be stunned if most municipalities do not pass their own 1% tax.

Some local govt reps have been quoted as being annoyed about it. I'm not surprised, because if they still want that revenue and have to pass local ordinances to get it, they will have to answer for it to their own constituents at the ballot box.