The residents of Oak Lawn will not experience a reduction in their grocery bills next year, despite a recent repeal of the state’s one percent tax by the Illinois General Assembly. The Oak Lawn Village Board has decided to introduce a one percent tax on grocery store transactions to avoid an annual revenue loss of $2.2 million. This decision was made during a board meeting on Tuesday.
The mayor highlighted that the village hosts numerous grocery stores, making this tax a significant contributor to local funds. The Illinois Governor, J.B. Pritzker, had earlier repealed the state tax, citing its disproportionate burden on low-income households amidst rising inflation. However, he also allowed municipalities the latitude to implement their own grocery taxes without requiring voter consent.
The Oak Lawn mayor emphasized that the new village tax would not increase costs for consumers, as it is intended to replace the former statewide tax. This move is part of a broader strategy among several Chicago suburban areas to mitigate the financial gap expected once the state tax ends on January 1. Various suburban mayors have voiced their concerns and advocated the need for local solutions to compensate for the previous ten percent return from the state income tax.
Reports from the nonprofit organization Illinois Policy indicate that as of January, 46 towns within Illinois have opted to introduce their own grocery taxes. These taxes must be approved by the municipalities and submitted to the Illinois Department of Revenue by October 1.
In related developments, the Oak Lawn board approved a $133,000 plan to dismantle equipment at the Village Hall’s fuel station, which services police and other village-owned vehicles. The existing station, constructed in the early 1990s, is due for replacement. Plans are underway to establish a new public fuel station at the village’s public works facility located at 5532 West 98th Street.
The Bottom Line
- The introduction of a new local grocery tax means residents will not see a decrease in their grocery bills, maintaining the status quo of expenses for daily shopping needs.
- This tax decision reflects broader regional trends of municipalities seeking to stabilize their financial health by finding alternatives to state-provided funds.
- The shift in tax policy may influence consumer behavior, potentially affecting shopping patterns as residents adapt to the unchanged grocery costs.
- For local businesses, especially grocery stores, this could mean maintaining customer flow without additional price pressures, preserving their economic vitality.
- The planned upgrade to the fuel station infrastructure signifies an investment in local public services, enhancing efficiency and accessibility for both municipal operations and public use in the future.