During this year’s state budget negotiations, lawmakers have given their approval to Governor JB Pritzker’s proposal to phase out the statewide 1 percent grocery tax starting in 2026. The governor signed this provision into law on Monday.
The revenue generated from the state grocery tax currently benefits municipal governments rather than the state treasury. To compensate for the anticipated loss in revenue, the new law permits counties and municipalities to implement their own 1 percent grocery taxes through the passage of an ordinance, eliminating the need for a referendum.
Moreover, the legislation grants non-home rule municipalities the ability to enforce sales taxes of up to 1 percent without requiring a referendum.
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