Amid preparations for the upcoming fiscal year, local officials in Tinley Park are evaluating the implementation of a municipal grocery tax. This consideration comes as a strategic response to the anticipated shortfall following the state’s decision to end its grocery tax. Neighboring communities such as Oak Lawn have already introduced a 1% tax following the cessation of Illinois’ grocery tax. The proposed budget for Tinley Park suggests that introducing a grocery tax could generate approximately $300,000, with plans for it to be operational in the last third of the budget year. The fiscal year for the village commences on May 1, and a special meeting is slated for later this month to finalize the budget.
Village Manager Pat Carr indicated that the topic of a grocery tax has been under discussion among village officials and is expected to be presented to the Village Board within the next couple of months. Last summer, the Illinois General Assembly eliminated the state grocery tax, and Governor JB Pritzker enacted this change to mitigate the burden of inflation on low-income families, while allowing municipalities to impose their own taxes if necessary. As of January, reports indicate that 46 towns across Illinois have established local grocery taxes.
Despite the cessation of the state tax, Tinley Park and other municipalities will continue receiving state-collected tax funds until the end of the current calendar year. The village anticipates collecting $300,000 in revenue from the new tax between January 2026 and the close of the next fiscal year in April 2026. Carr disclosed a significant $3 million reduction in the village’s budget due to the state tax elimination and noted that the specific percentage for the new grocery tax has yet to be determined.
The village’s general fund, which supports most essential services, projects a starting balance of $47.8 million, with revenues of $71.5 million forecasted from various sources, including property and sales taxes. For fiscal 2025, the village had budgeted a general fund revenue of $72.6 million, with actual projections reaching $76.6 million. Proposed spending for the upcoming fiscal year is set at $75.8 million, compared to an estimated $71.8 million, and a projected $61.5 million in the current year.
Sales tax revenue for the next budget year is expected to be $26.3 million, growing from an estimated $25.1 million this year. Tinley Park also levies a home rule sales tax of 0.75%, applicable to general merchandise but not to groceries or medicine. Revenue from video gambling terminals is anticipated to remain steady at approximately $2.1 million.
For the Police Department, proposed spending in the patrol division for the upcoming budget year is $10.8 million, up from $9 million in fiscal 2025. This includes an additional $1 million allocated for patrol salaries, raising the total to $7.2 million. The investigations division anticipates spending $3 million compared to $2.5 million in the current fiscal year. Additionally, the downtown Harmony Square event plaza, expected to open later this year, is allocated $1.3 million, with around $750,000 designated for programs and special events.
The Bigger Picture
The implementation of a municipal grocery tax in Tinley Park carries potential implications for both the local economy and residents. On one hand, the additional revenue could help bridge the financial gap left by the elimination of the state grocery tax, enabling the village to maintain essential services and infrastructure without compromising quality. This could be critical in sustaining community amenities and public safety measures, which are vital for residents’ quality of life.
However, there may also be financial repercussions for residents, particularly those from low-income households who may feel the pinch of increased grocery costs. While the measure aims to stabilize the village’s budget, it could inadvertently impact household budgets, especially when combined with the pressures of broader economic inflation. The balance between municipal fiscal health and the financial burden on residents presents a challenging landscape for local policymakers.