Will Chicago Keep Grocery Tax in Place? City Has Until Oct. 1 to Decide
- Chicago must decide by October 1, 2025, whether to continue collecting a 1% local grocery tax after the statewide tax expires January 1, 2026.
- Illinois recently phased out the statewide grocery tax and passed responsibility to municipalities, forcing Chicago to consider a local ordinance amid a $1.12 billion budget gap.
- Mayor Brandon Johnson and officials urge keeping the tax because losing it could cost Chicago up to $80 million in revenue next year, worsening service cuts and budget deficits.
- Revenue Subcommittee chair William Hall said, "We need $80 million, there's no 'ifs,' 'ands' or 'buts' about it," while alderman Andre Vasquez called the state's move "passing the hot potato."
- The tax decision reflects political challenges and calls for broader revenue reforms, including expanding the sales tax to professional services and increasing Chicago's share of state taxes.
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Chicago aims to reenact grocery tax; suburbs consider sales tax hikes
(The Center Square) – About 200 municipalities have plans to reimpose Illinois’ grocery tax locally, and the state’s largest city may be among those joining the group.
·United States
Read Full ArticleWill Chicago keep grocery tax in place? City has until Oct. 1 to decide
CHICAGO — The clock is ticking for Chicago on whether to continue a decades-old tax on groceries, or further dig itself into a billion dollar budget deficit. The state's grocery tax will be phased out January 1, but Springfield is pushing the responsibility onto city's and towns instead. State lawmakers signed off last year on removing a one percent grocery tax as part of the Gov. JB Pritzker's 2025 budget plan. That takes effect on Jan.1. But i…
·Chicago, United States
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