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Gov Pritzker’s Proposal To Eliminate Grocery Tax Worries Local Government

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Governor Pritzker’s proposal to repeal the Illinois state 1% grocery tax will have unintended consequences for local governments.

Illinois Gov. J.B. PritzkeR (Photo: Google)

Gov. Pritzker: Put Money Back In People’s Pockets

According to ABC 7 Chicago, dollars just don’t go as far they used to and permanently eliminating the 1% sales tax on groceries is appealing to some. Porifiro Munoz, a fixed income earner, said that the prices are so high in the stores and people are struggling to buy groceries and stuff.

Mayor Jeffrey Sherwin of Northlake City says it is a noble idea. Nobody wants to pay taxes, especially on groceries. But he also warns that it will have unintended consequences going all the way down to the local level.

READ ALSO: Pritzker’s Grocery Tax Abolishment Plan: A Boost To Consumers’ Wallets?

Revenue Loss Is Huge And City Services Could Go Away

Mayors across Illinois is now assessing the implications eliminating the 1% grocery tax. According to Vandalia Radio, leaders in Decatur, Peoria and other cities are not happy with Gov. Pritzker’s proposal.

In July 2022 when the state suspended the grocery tax, the state reimbursed the local government for that lost revenue but that will not be the case this time. Brad Cole, CEO of the Illinois Municipal League said that the local government must come up with that loss revenue somewhere else.

According to ABC 7 Chicago, to cover the loss revenue, the city might implement a 12% city property tax hike or would cut down services. Cole said that municipalities must come up with other plans to get that money if they want roads, bridges, police and fire protection.

READ ALSO: Dependents Equal Tax Savings: A Helping Hand For Family Finances

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