Question of the day
Monday, Feb 26, 2024 - Posted by Rich Miller
* Gov. Pritzker was asked today about his proposal to get rid of the 1 percent sales tax on groceries. Aside from a small administrative fee, that money (about $350 million a year) goes to local governments. So, he was asked about the concerns some of those governments have about how they will make up for that revenue if the tax is repealed. His response…
Let’s be clear. And some folks up here talked about affordability, lowering the cost when you go to a grocery store, when you get to the checkout counter, lowering costs for people. That’s hugely important. Being able to save people hundreds of dollars over the course of a year, and even just every time you check out at a grocery counter, it seems to me is the right thing to do.
And by the way, when I did this as a temporary measure to try to fight inflation, when it was so hot, when it was much higher than it is now, there were people, especially on the other side of the aisle, who said, ‘Well, you should make it permanent.’ Well, guess what? That’s a good idea. We’re gonna make it permanent.
But now you hear some of them saying, ‘Well, maybe, you know, we’re not so sure.’ And the reason is because they feel like local governments won’t be able to get the dollars that they need. Well, you know the point of this legislation is actually to leave it to local governments to make the decision if they want to in Henry County, in Union County, in local, you know, towns and cities across the state. If they want to impose the 1% Grocery tax, we will leave it up to them to do it.
But the state of Illinois is getting out of the business of charging a grocery tax for people across our state. We need to stand up for working families.
The state would probably need to make it easier for non-home rule units to impose such a tax.
* The Question: Do you support banning the statewide collection of grocery taxes for municipal governments and allowing local governments to impose it themselves? Take the poll and then explain your answer in comments, please.
- Fan - Monday, Feb 26, 24 @ 2:10 pm:
I support this but it is a problem for municipalities. Springfield should probably help the locals if they are going to take this revenue away.
- very old soil - Monday, Feb 26, 24 @ 2:13 pm:
The grocery tax has always been perfect for local communities. They get (almost) all the money and the state gets all the blame.
- Cool Papa Bell - Monday, Feb 26, 24 @ 2:14 pm:
Support the ban. Support municipalities going their own way. But there should be a cap and a city shouldn’t be able to levy more than 1%.
Always like seeing local elected officials having to be held to tax increases or raising the cost for things.
- DuPage Saint - Monday, Feb 26, 24 @ 2:15 pm:
I voted yes. Isn’t this sorta a small government issue? Do it at local level make them be responsible to the voters. Then they can’t blame Springfield. But I am also cynical enough to figure state will find away so it will not be out money and people will end up paying more somehow
- H-W - Monday, Feb 26, 24 @ 2:20 pm:
I voted yes because everyone eats food.The 1% rate is so minimal that it is unnecessary. If I spend $500 a month on just groceries for my partner and myself, we are only talking 50 cents a month in taxes.
That may mean nothing to me, but at the bottom of the wage hierarchy, every penny actually does count. I have been hungry. I have known days when it did not matter what the store charged, because I did not have enough pennies.
I would also suggest some other essentials should be treated as groceries, and untaxed. Personal hygiene products come to mind quickly.
- NorthsideNoMore - Monday, Feb 26, 24 @ 2:24 pm:
Fan @ 2:30
Springfield could help by restoring the Local Government Distributive Fund to its promised amount.
- Dan Johnson - Monday, Feb 26, 24 @ 2:26 pm:
We still have a very punishing tax regime for people who aren’t paid a lot of money. People who are paid a lot of money pay a lot less per capita than people who aren’t paid much. This is a good away to reduce the burden on people who don’t get paid much because everybody’s got to eat and families that don’t have a vacation or dining out budget have a bigger chunk of their money go to groceries (and thus a heavier load) than families with means.
I don’t think the locals need to put it on the ballot, do they? So they’ve always got the option. And since they don’t have legislative deadlines, they have plenty of time before July 1 to debate and decide if they’d like to maintain the revenue from the tax.
- Ducky LaMoore - Monday, Feb 26, 24 @ 2:27 pm:
Voted no. This seems like a solution in search of a problem. The system works, don’t mess with it. Don’t force municipalities to impose a sales tax. The anti-tax folks will have a field day.
- Politix - Monday, Feb 26, 24 @ 2:29 pm:
This is kind of a loaded question. I voted yes to eliminate the tax. People are really struggling to afford food. Our local/west suburban food pantries are busier than ever.
Municipal govs that continue to collect the grocery tax also will put their local stores at a disadvantage as the public will opt to shop in non-taxing neighboring communities. Poor idea for small business.
- DuPage Dad - Monday, Feb 26, 24 @ 2:33 pm:
I voted no because many towns have existing redevelopment agreements with grocery stores which are now threatened with the loss of revenue. Additionally, groceries are such a ubiquitous provider of funds for local services, it seems odd to go after that specific item. Finally, given that grocery stores were deemed so important to communities by the State that JB has continually put money in the state budget for grocery store grant programs, and to now say that local communities get no financial upside in those deals, just seems odd and not a good fit.
- don the legend - Monday, Feb 26, 24 @ 2:34 pm:
H-W. 1% of $500 is $5.00. Not that much but still more than 50 cents.
- CentralILCentrist - Monday, Feb 26, 24 @ 2:39 pm:
I voted no, but then realized it meant banning the “collection by the state”. That I am in favor of. If the locals want to impose it, they should collect it and receive whatever levy they have imposed. Then, voters can focus locally on who/what is spending their money rather than the conduit of arduous state collection/disbursement.
- It's Just a Pill - Monday, Feb 26, 24 @ 2:39 pm:
It’s a “running for President” talking point bill. The benefit to the consumer is hardly noticeable and not at all impactful, it passes the buck to local governments to impose “new” taxes. Not the best way to build good policy.
- Route 50 Corridor - Monday, Feb 26, 24 @ 2:45 pm:
I understand the idea that this should be locally prescribed, but in my part of the state there will be some people that will not vote for this in their city’s and that’s going to lead to contraction of services and many of those service are going to be cut in neighborhoods and towns that this is supposed to be a next plus.
- ArchPundit - Monday, Feb 26, 24 @ 2:52 pm:
Only 13 states tax groceries and of those Illinois, Hawaii (a weird case in the details) and Virginia are blue states or at least pretty purple. Missouri and South Dakota if you count it are the only other midwestern states to charge a grocery tax. The state should get out of the business of taxing groceries.
- New Day - Monday, Feb 26, 24 @ 2:59 pm:
I favor this for accountability reasons. It’s always easy to blame someone else and then enjoy the benefits. Kind of like all the GOPers who voted against the Infrastructure Bill or the CHIPS Act or even the IRA but then sent out press releases and had press events celebrating the spending. You want the revenue? You vote to tax your residents. It’s a simple principle.
- Frida's boss - Monday, Feb 26, 24 @ 3:17 pm:
Voted yes.
The State will have to do something to allow for non-home rule municipalities to increase a full percentage. I believe a municipality can only do a 1/4% or 1/2% if non-home rule without going to a referendum?
- Candy Dogood - Monday, Feb 26, 24 @ 3:30 pm:
I broadly support ending regressive taxes.
I think it is generally a bad idea to take the grocery tax and make it up to specific municipal governments to decide whether or not they want to assess it. This should be done as an all or none. If it creates a revenue for some counties, they can make the decision to increase sales taxes on the non-grocery/food expenses.
- Anyone Remember - Monday, Feb 26, 24 @ 3:31 pm:
Yes but … the locals should be restricted to the current tax rate. IF they want a higher tax rate, that should be a separate vote at a different time.
- Vader - Monday, Feb 26, 24 @ 3:50 pm:
CentralILCentrist - having the tax collected locally would be more work for the stores, especially if there are different rates in different communities. The tax can be locally imposed and still collected by the state, just like a home rule sales tax.
- Interested Bystander - Monday, Feb 26, 24 @ 3:51 pm:
I voted yes. Local government needs to face voters and ask for the taxes. Instead, what they do today is continually hide behind the state demanding more LGDF and then telling voters how they never increase their taxes.
- Loco Control - Monday, Feb 26, 24 @ 4:00 pm:
Voted yes, but why stop there? The state should do away with LGDF, lower the state income tax rate and empower local municipalities to create/raise local income taxes if they love their LGDF money so much. It would probably require a constitutional amendment, but I’m sure all these LGDF-loving mayors would rally the troops to get it passed. #LocalControl
- Don't lose Sight - Monday, Feb 26, 24 @ 4:05 pm:
This is another Pritzker …”Fair Map” political play……do as I say…not as I do…..
No
- Juvenal - Monday, Feb 26, 24 @ 4:18 pm:
=== The anti-tax folks will have a field day. ===
They are already having a field day, only right now The Republican Party blames Pritzker and the General Assembly.
Just wait until the last few suburban Republican lawmakers vote against eliminating the state sales tax on groceries, and then all of their Republican mayors and city councils vote to raise it back up again.
Dan Proft will make a killing making a killing. The Illinois Policy Institute too.
I would disagree with Rich on one small point, why not make it easier for communities to become home rule if the municipal league wants that, instead of carving out a narrow exception for non-home rule communities.
- DuPage - Monday, Feb 26, 24 @ 4:57 pm:
Good idea, cut the state tax and allow local governments to raise the local tax ONLY by referendum. Make the locals justify tax increases to the voters.
- H-W - Monday, Feb 26, 24 @ 5:51 pm:
@ Don the Legend
I stand corrected. And worse, they let me teach. Hehe
- Odysseus - Tuesday, Feb 27, 24 @ 7:06 am:
@H-W +1