Illinois lawmakers have voted to eliminate the state’s 1% grocery tax in 2026, prompting officials in Palos Park to consider a local version of the tax to offset potential revenue losses.
In May, Gov. J.B. Pritzker described the grocery tax as “regressive” and expressed his support for its removal. “If it reduces inflation for families from 4% to 3%, even if it only puts a few hundred bucks back in families’ pockets, it’s the right thing to do,” Pritzker said during his budget address.
However, officials in Palos Park are concerned about how the loss of the state grocery tax might affect the village’s budget.
“Palos Park is estimated to receive $211,000 annually from the current grocery sales tax,” Finance Commissioner G. Darryl Reed said at the Oct. 28 village council meeting. “That amounts to over 3% of the fiscal year 2025-approved budget of $6.9 million for the general fund.”
The council is weighing the option of implementing a local grocery tax to help maintain the village’s financial stability.
“Every municipality in Illinois has been given the power to reintroduce its own grocery tax at the same rate,” Reed said. “Considering the impact it will have on our budget, I recommend that the council enters discussion on the merits—pro and con—of a village 1% sales tax on food for home consumption.”
Reed proposed beginning discussions on the topic at the Nov. 11 meeting, aiming to finalize a decision by July or August. “This timeline will allow for sufficient time to address any issues that may arise,” he added.
While some residents may find a local grocery tax burdensome, village officials say it may be necessary.
“It will impact the village greatly, and we will be discussing our options carefully,” Mayor Nicole Milovich-Walters said. “To put it in perspective, if you spent $10,000, the tax would amount to $100. It adds up for the village, and those are things to consider.”
Palos Park’s 110th Birthday
While Oct. 31 is widely associated with Halloween, it also marks the 110th anniversary of Palos Park’s incorporation. The village was officially established on Oct. 31, 1914.
“It’s incredible to think about how far we have come thanks to the pride and hard work of everyone here,” Milovich-Walters said. “We look forward to many more years of community growth and good times together.”