The end of the state’s 1% tax on groceries has Glenview elected officials considering ways to make up the anticipated shortfall.
The statewide tax is scheduled to end on Jan. 1, 2026 following action taken by the Illinois General Assembly in 2024. While the tax is collected by the state, revenues from it are later returned to the municipalities where the tax was charged.
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The village of Glenview stands to lose approximately $2.7 million next year when the grocery tax ends, elected officials were told in a memo from village staff shared during a July 15 board meeting.
Staff presented the Village Board with four options to make up for the loss, but trustees did not reach a consensus for direction.
Discussion is expected to resume at the next Village Board meeting, scheduled for Aug. 5, though no action will be taken, said David Just, spokesman for the village.
One option presented to the Board calls for continuing the grocery tax through adopting a 1% local grocery tax. More than 100 municipalities across the state—including Morton Grove, Glencoe, and Des Plaines—have already voted to continue the tax, said Gillian Cookerly-Dietrich, management analyst for the village.
“Under this option, the village would maintain the existing $2.7 million in annual revenues, avoiding impacts to current services, capital improvement projects and the need for alternative revenues,” she said.
If the village does not make up the tax, the Board will need to consider budget cuts or other local tax increases, elected officials were told. Options presented included cutting funds for capital projects; reducing operating expenses from the budget; or raising new revenue by increasing the home rule sales tax rate by .25%, adding a 1% food and beverage tax on restaurant purchases, or increasing the property-tax levy by 18%.
Trustees Adam Sidoti, Gina DeBoni and Tim Doron expressed tentative support for continuing the 1% tax on groceries locally.
Sidoti called the state’s action to eliminate the tax “political.”
“There was no plan given to municipalities like ours that rely on this tax (revenue) to support many of the things we love, value and, frankly, need in the village,” he said. “So, as we look at the impact of the tax, for me it became clear that the maintenance of the tax is the only plan that delivers the most value to the village as a whole.”
“This isn’t adding a new tax,” DeBoni added. “For me, it’s keeping the status quo. That’s what we’re being asked to do here.”
She said she was not comfortable with the other alternatives presented to the board.
Doron noted that at 1%, the tax adds up to just $1 on $100 in groceries purchased.
“It doesn’t hurt big time because it’s so minimal,” he said.
Trustees Jim Bland and Mary Cooper called on staff to be more “creative” with alternative options for the tax.
Bland suggested increasing the village’s food and beverage tax, but was told the village does not have this tax currently.
Many communities apply this tax to food and drink purchased in restaurants. Nearby communities like Morton Grove and Lincolnwood charge a 2% tax, while Niles and Des Plaines charge 1%, according to the village.
A 1% food and beverage tax would generate approximately $1.7 million in Glenview, village staff said.
Bland later said he would favor a “consumption” or “discretionary” tax, noting that the food and beverage tax and home rule sales tax options meet this definition.
Cooper suggested a look at budget-tightening.
“I’m very sensitive to people who are on a type of budget and food is one of their necessities,” Cooper said.
Like Sidoti, Village President Michael Jenny was critical of the action taken by state lawmakers.
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“We were stripped of a revenue stream by someone who doesn’t have to make the hard decisions,” he said.