Bloomington has become the latest Illinois city to reinstate a one-percent grocery tax, joining hundreds of municipalities preparing for the state’s elimination of the levy in 2026. Meanwhile, Chicago could face an $80 million budget shortfall after failing to act before the October 1 deadline.
Chicago’s City Council did not take up the issue during its lengthy Thursday meeting, which ran more than five hours. Budget Director Annette Guzman previously warned that failure to reaffirm the grocery tax would worsen the city’s already massive $1 billion budget deficit.
Mayor Brandon Johnson insisted that discussions are ongoing, but emphasized that the tax was not his initiative.
“I don’t own the rights to any taxes. This is a tax that’s been around for 30 years. The state has historically collected this tax. The state has decided that it no longer wants the responsibility to collect the tax,” Johnson said.
Governor J.B. Pritzker signed legislation in August 2024 repealing the statewide grocery tax effective January 1, 2026. However, the law allows municipalities to impose a one-percent local replacement tax to preserve revenue.
Critics argue that the tax unfairly targets working families already struggling with higher food costs. Speaking before the council, Chicago resident Aron Mantyla, representing The Urban Center, called the grocery tax “a direct hit to working families,” noting food costs are more than 20% higher than just a few years ago. He also warned that small grocers in underserved communities would be hardest hit.
“When costs go up, customers go elsewhere, people move away, or we all cut back. When those businesses close, access to affordable groceries disappears. This is not just a tax, it is a regressive tax,” Mantyla said.
Chicago’s combined state and local sales tax already sits at 10.25%, one of the highest in the nation.
While the grocery tax was left unresolved, aldermen did approve plans for a new Chicago Fire soccer stadium and voted 43-4 to issue a formal apology for the city’s history of slavery. The council’s next meeting is scheduled for October 16.
In Bloomington, the council narrowly passed the one-percent grocery tax earlier this week, with council member Mollie Ward and two colleagues opposing it. Ward argued it would hurt those least able to bear the financial burden, including seniors and low-income families. City manager Jeff Jurgens estimated Bloomington would lose $3 million in revenue if the tax were not reinstated.
