Faced With Loss Of State Grocery Tax, Homewood Mulls Imposing Its Own

HOMEWOOD, IL — Homewood residents might not see relief when the State does away with its grocery sales tax, as Homewood officials now mull adding the Village's own.

In light of Governor JB Pritzker’s plan to eliminate the State of Illinois' 1 percent grocery sales tax next year, the Village of Homewood Board of Trustees will consider implementing a local 1 percent grocery sales tax. The local tax would take effect Jan. 1, 2026, along with other surrounding municipalities in Cook County.

For the Village of Homewood, approximately 11 percent of total sales tax revenue, roughly $650,000, comes from grocery sales. The loss of this funding would create a projected budget deficit of $490,000, absent any adjustments to local spending, the Village said in a release.

This local tax measure is intended to preserve critical General Fund revenues that support essential Village services. Under current State law, the 1 percent grocery tax applies to items intended “to be consumed off the premises where they are sold,” and does not include alcoholic beverages, soft drinks, candy, cannabis-infused food or beverages or prepared food meant for immediate consumption.

Recent news reports indicate that Homewood joins a growing list of 188 communities to pass the 1 percent grocery sales tax, including the communities of Chicago Heights, Markham, Tinley Park, Orland Park, Crestwood, Blue Island, Wheaton, Lombard, Downers Grove, Woodridge, Carol Stream, Schaumburg, Des Plaines and Buffalo Grove.

The Village of Homewood remains committed to transparency and sound fiscal management. The Board of Trustees will consider voting on the authorizing ordinance at the June 10 Village Board of Trustees meeting.