Curious about the savings at the grocery store when the statewide grocery tax is eliminated? A recent report from the Illinois Policy Institute indicates that residents of Fairfield would collectively save approximately $102,396. The Fairfield City Council has approved the tax repeal, set to take effect on January 1, 2026, coinciding with a one percent reduction by the state.
This estimated savings figure is derived from the 2023 tax revenue from the grocery tax, as reported by the Illinois Department of Revenue. While residents will benefit from the repeal of the 1% grocery tax, local governments will lose out on this revenue. For context, a low-budget meal plan defined by the USDA in January 2020 was estimated at $858 per month, but inflation has raised that cost to $1,064 as of May this year.
Albion will save $29,651, McLeansboro residents $143,933. Mt. Vernon’s expected savings exceed $1,250,654; Grayville will save $45,345, Carmi residents are projected to save about $127,303, Flora $108,697, Olney $189,938, Mt. Carmel $108,409, Wayne City $34,508 and Cisne $15,754.
Cities now face a decision: implement their own grocery tax or risk losing shoppers to neighboring towns in Indiana or other nearby areas that do not impose the grocery tax.
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