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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 Tribune broke the news in Chicago, United States on Tuesday, June 3, 2025.
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