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Aurora Votes 7–5 to Keep 1% Grocery Tax Ahead of Statewide Repeal

City leaders say the levy preserves $4.5 million to help close a projected $29.7 million 2026 budget gap.

People shop Wednesday after the ribbon-cutting at El Paso Mas Grande on Aurora's far West Side. Steve Lord photo
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Overview

  • Aurora’s council approved continuing a local grocery levy so collection can carry on when the state repeal takes effect on Jan. 1, 2026, with an Oct. 1 deadline set for municipalities to file with the state.
  • The 1% tax generates about $4.5 million a year, and CFO Stacey Peterson reported a $29.7 million general fund shortfall forecast for 2026.
  • Supporters argued the revenue helps avoid deeper service cuts or shifting costs to property taxes, while opponents cited resident hardship and rising food pantry demand.
  • The council also voted to double the hotel tax starting next year, with the added revenue pledged to debt payments, and officials signaled likely property tax increases for debt service and pensions.
  • The levy applies to take-home food and exempts purchases made with SNAP benefits, and nearby suburbs including Naperville, North Aurora, Batavia, Geneva and St. Charles have adopted similar local measures.