Oswego Considers 1% Local Grocery Tax at April 22 Committee of the Whole Meeting

The state’s 1% grocery tax will expire on January 1, 2026. (stock photo)

On Tuesday night, Oswego’s Committee of the Whole discussed the possibility of maintaining a 1% grocery tax locally that would replace the State of Illinois’ 1% grocery tax, which would expire on January 1, 2026.

Village staff presented information that estimates it received over $1 million in grocery tax revenue in 2024, which was posted to the Village’s General Fund that supports general operations and functions such as police service and public works divisions.

There are four options available to the Village:

• Maintain the 1% grocery tax locally and keep the revenue in the general fund, in which revenue stream and service levels would remain intact.

• Maintain the 1% grocery tax locally with revenue directed to the Water and Sewer Capital Fund.

• Maintain the 1% grocery tax locally and create a Permanent Fund where the revenue remains untouched and is left to grow and the interest earnings would be used for base revenues. This was a recommendation from village trustee Kit Kuhrt.

• Allow the 1% grocery tax to expire.

Almost 50 municipalities in Illinois have already passed a local grocery tax, including Montgomery. Yorkville is also considering maintaining a 1% grocery tax. Village staff said that they will bring back the topic for continued discussion at a future meeting.

The Committee of the Whole discussion can be seen online at oswegoil.org.