The State of Illinois passed a request from Governor Pritzker to eliminate the grocery tax in Illinois. This measure does not have an effect on the state; however, municipalities would be hit hard with the loss of thousands if not a million dollars in revenue.
To counter what the state has done, the Dixon City Council implemented a grocery retailer’s occupation tax and a grocery service occupational tax.
Dixon Mayor Glen Hughes said the City of Dixon would loss about $1 million. This would mean some major cuts in services and community support.
Mayor Hughes said in his opinion, what the Governor and State did in eliminating the grocery tax was purely political. The mayor said the state is also clawing back money from the Corporate Replacement Tax.
The tax goes into effect on January 1, 2026.