Steve's Blog

I’ve seen many people talking about the repeal of the 1% grocery tax and touting it as a cure-all for the inflation families are facing at the grocery store. So, this week I’m dusting off an article from a couple of months ago that explains exactly what was in that legislation and why it may actually mean that your grocery bills will go up.

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Here you go:

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In his State of the State speech in February, Governor Pritzker proposed getting rid of the 1% sales tax on groceries. With inflation having driven up food prices 25% since 2020, repealing this tax was a popular proposal among Illinois families and one which didn’t cost the state a dime.  

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Here’s why: the current Illinois grocery tax of 1% is set by the State but those tax dollars go to local governments. When Governor Pritzker proposed getting rid of the grocery tax, local government officials were furious because after cutting the Local Government Distributive Fund (LGDF) and the Personal Property Replacement Tax (PPRT) reimbursement, this blatantly political gimmick was one more effort by the Governor to strangle the budgets of local governments because he’d be able to say he “cut taxes” without having to cut any spending or make up the difference. 

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I wonder if the Governor’s people asked voters what they thought of a policy that would increase their grocery tax? I don’t need a public opinion poll to know that idea would be terribly unpopular. At a time when families are paying more for groceries than ever before, how could any politician consider increasing taxes on groceries? But they found a way. 

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In an effort to keep its campaign message of cutting grocery taxes alive, the Pritzker administration worked out a deal with local governments. The statewide grocery tax would be eliminated but local governments (including non “home-rule” communities) would be able to enact their own grocery tax without a voter referendum. In addition, non home-rule communities would be able to enact an additional 1% sales tax, not only on groceries but on all otherwise taxable sales, again without going to referendum.  

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The bill to “Eliminate the Grocery Tax” passed overwhelmingly and I’m sure there are plenty of people ready to run ads across the state talking about how they “cut taxes on groceries.”

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Only in Springfield can a “tax cut” law in reality mean a 200% increase in that same tax. People are so tired of this political double-speak. That’s why I voted “No”. You deserve real relief from price increases – this new law does the opposite. 

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The results of this politically motivated “talking point” legislation will mean that some families will pay more in grocery taxes than they did before it passed. Too many families are having a hard enough time paying for groceries already. It is immoral to promise them relief and deliver higher costs.