Beecher Officially Adopts 1% Grocery Tax to Avert $202,000 Budget Hit
Article Summary: The Beecher Village Board unanimously passed an ordinance to establish a local 1% grocery tax, a proactive measure to prevent an estimated annual revenue loss of over $200,000 when the state’s equivalent tax is eliminated in 2026. The new local tax will not increase the cost of groceries for consumers, as it simply replaces the state tax that is being repealed.
Beecher Grocery Tax Key Points:
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The board voted 6-0 to approve Ordinance #1428, establishing a Municipal Grocery Retailers’ Occupation Tax.
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The action was necessary because the State of Illinois is repealing its 1% grocery tax on January 1, 2026.
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The village estimates it would lose over $202,000 in annual revenue without the local replacement tax.
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Shoppers will see no change, as they will continue to pay the same 1% they currently do on applicable groceries.
BEECHER – The Village of Beecher has formally moved to protect a key source of its revenue, with the Board of Trustees unanimously approving a local 1% grocery tax to replace the state-level tax that will soon be eliminated.
During its July 28 meeting, the board passed Ordinance #1428, authorizing a Municipal Grocery Retailers’ Occupation Tax and a Municipal Grocery Service Occupation Tax. The move ensures the village will not lose an estimated $202,000 in annual revenue when the state repeals its 1% grocery sales tax on January 1, 2026.
The state legislation that repealed the tax also gave municipalities the authority to enact their own local version without a referendum. Beecher’s new ordinance effectively continues the existing tax under local authority, meaning residents will see no difference in their grocery bills.
“This is to replace the current 1% state grocery tax being repealed,” Trustee Todd Kraus said as he made the motion. “Consumers are already paying this 1% State grocery tax…this tax replaces it.”
Village President Marcy Meyer explained during a previous meeting that the revenue from the state grocery tax has always been distributed directly to local municipalities to help fund services. “The state never got it,” she clarified. “So it took the revenue away from us.”
By passing the ordinance, Beecher ensures a seamless transition. The Illinois Department of Revenue will continue to collect the tax on the village’s behalf and remit the funds back to Beecher, just as it has under the state tax system. The ordinance was approved by a 6-0 vote of all trustees present.
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