In 2024, the Illinois General Assembly approved Gov. J.B. Pritzker’s plan to repeal the statewide 1% grocery sales tax effective Jan. 1, 2026. The Homewood Board of Trustees will consider implementing a local 1% grocery sales tax effective Jan. 1, 2026, to compensate for the lost revenue.

The legislation repealing the tax authorized home rule and non-home rule municipalities to enact their own tax without a referendum. Homewood trustees will consider voting on the authorizing ordinance at the June 10 board meeting.

According to a Block Club Chicago report, about 200 municipalities have voted to implement local grocery sales taxes. Among those communities are Chicago Heights, Markham, Tinley Park, Orland Park, Crestwood, Blue Island, Wheaton, Lombard, Downers Grove, Woodridge, Carol Stream, Schaumburg, Des Plaines and Buffalo Grove, according to Homewood officials.

For Homewood, about 11% of total sales tax revenue, roughly $650,000 per year, comes from grocery sales. The loss of this funding would create a projected budget deficit of $490,000, absent any adjustments to local spending.

This local tax measure is intended to preserve critical General Fund revenues that support essential village services. 

Under current state law, the 1% 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.

The Illinois Municipal League has published an explanation of the process and timing for municipalities to approve a local grocery sales tax.