PEKIN, Ill. – The city of Pekin is using a new grocery tax in the hopes of making up a state tax that will be going away.
By a 4-3 vote at Tuesday night’s city council meeting, councilmen approved the creation of a 1% local grocery tax to go into effect January 1st, 2026. It would go into effect when a 1% state grocery tax is repealed, after being signed by Governor J.B. Pritzker in August.
City Manager John Dossey estimates Pekin would lose $1.5 to $1.7 million annually in the general fund without the grocery tax.
“Failing to replace the Sate tax with a local tax at the same rate would cause a loss of revenue that would have to be made up either by increasing revenue elsewhere or by cutting public services,” Dossey said.
Mayor Mary Burress voted yes on the new tax, saying it’s a more preferable option to keep revenues at its current levels.
“Maybe through property tax, which is just on people who own homes in the city of Pekin,” Burress said. “On grocery tax, it is somebody coming through, stopping to pick up something at a grocery store that might not live here, that is helping us with this collection.”
Councilman Dave Nutter opposed the tax, centering his opposition on adding more taxes to the city of Pekin. He says he would have been open to revisiting the issue in a year, when the budget impact could be seen.
Councilman Rick Hilst also opposed the tax, but wanted to take the issue to voters in a referendum for April’s municipal elections.
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