Illinois municipalities are waiting for full funding of state income tax revenues as they lose money from the elimination of the state’s grocery tax.
Illinois Municipal League CEO Brad Cole said Local Government Distributive Fund rates have grown incrementally to between six and seven percent.
The fund contains a portion of state income tax revenues designated for cities and counties.
Illinois eliminated a 1% grocery tax, effective next January 1st. Cole said about 60 communities have passed their own taxes to make up for the lost revenue.
Cities have until October 2025 to pass an ordinance to continue the 1% tax on groceries locally in order to avoid a lapse in revenue.
Story from Illinois Radio Network
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