Illinois Law Ends State Grocery Tax, Allows Local Tax Increases Without Voter Approval

Governor Pritzker's new legislation shifts the tax burden to local governments, potentially nullifying relief for residents.

The state grocery tax will be eliminated by January 1, 2026, but local governments can now impose their own 1% grocery tax.
Local tax increases can be enacted by ordinance immediately, bypassing the need for voter referendums.
State Senator Don DeWitte criticizes the law for shifting the financial burden to local governments without providing alternative funding.
The law also enables Chicago to impose up to a 9% 911 tax on prepaid wireless plans and Sangamon County to impose up to a 3% hotel tax.
Governor Pritzker argues the measure will ease financial burdens, but critics claim it results in a net zero effect for taxpayers.