Pre-existing grocery tax could help bring more money back into Decatur

DECATUR, Ill. (WAND) - On Monday, the Decatur City Council met to discuss a grocery tax ordinance.

While this may sound concerning, the good news for consumers is that shopping for groceries in Decatur won't cost them any more than before. This tax will not increase the total cost of your next trip to the grocery store.

In fact, there will be no changes for consumers at all. The proposed ordinance is called the Municipal Grocery Retailers Occupation Tax and the Municipal Grocery Service Occupation Tax. Its intent is to redirect 1% of the grocery tax that would normally go to the state and bring it back into the City of Decatur.

"This is not a tax increase. It is just simply transferring who collects the tax," said Councilwoman Lisa Gregory.

In 2023, it was decided that the state of Illinois would collect a 1% grocery tax, which would then be returned to its respective municipality. However, the state later decided to stop collecting these taxes and to allow municipalities within the state to adopt this tax at a local level.

If this ordinance does not take effect, the City of Decatur could lose $2.7 million in tax revenue. After further discussions and a vote, six members of the council were in favor of the ordinance, while one member opposed it.

The state will continue to collect the taxed revenue until 2026, at which point the official ordinance for groceries can go into effect.