Governor Pritzker signed legislation eliminating the state’s 1% grocery tax, effective in 2026. The move aims to ease the financial burden on families at the grocery store checkout. But for many small rural towns, the change threatens a critical source of municipal revenue.
In towns like Good Hope, Macomb, and Colchester, the grocery tax has been a vital funding stream—often the only one. With the state tax disappearing, local leaders have scrambled to find ways to maintain that income.
The Illinois Municipal League (IML) recommended that municipalities pass their own ordinances to preserve the grocery tax revenue locally. Following that advice, the Village of Good Hope’s board of trustees voted Monday to enact Ordinance 752, supported by Mayor John Connor.
“This is not a tax increase or a new tax,” Mayor Connor said. “It’s simply a continuation of what has been in place.”
Once approved locally, the ordinance will be sent back to the IML, which will forward it to the Illinois Treasury. The Treasury will then ensure the grocery tax revenue continues flowing to the town.
Macomb and Colchester are also moving forward with similar ordinances to secure their funding.
As these rural communities adapt to the state’s decision, they hope to avoid budget shortfalls and maintain essential services.
