Aurora becomes latest Illinois municipality to keep grocery tax despite state eliminating it
Aurora on Tuesday night became the latest city in Illinois to beat an upcoming deadline to take action on a new grocery tax.
The State of Illinois voted last year to eliminate a statewide grocery tax. Illinois Gov. Pritzker proposed eliminating the state's 1% sales tax on groceries as part of his 2025 budget plan, saying the tax is regressive and hurts low-income Illinoisans.
The Illinois General Assembly approved the legislation to eliminate the grocery tax in May 2024, when it approved Pritzker's budget plan. Pritzker signed the legislation in August 2024, and the tax will be repealed statewide on Jan. 1, 2026.
But some municipalities have decided to keep the tax in place at the municipal level, on the grounds that they need the revenue. Aurora joined that group Tuesday night, when a debate at an Aurora City Council meeting ended with a split vote of 7-5 in favor of maintaining the grocery tax.
The tax amounts to $1 for every $100 shoppers currently pay. Some Aurora City Council members wanted to pass the savings from the elimination of the state tax to residents, but the city's $1 million shortfall forced the council to get the tax in place at the municipal level.
As it is, shoppers like Chris Ross feel like they're paying too much for a cart full of groceries in Aurora.
"It's ridiculous," Ross said.
Yet these days, Ross is taking a closer look at the taxes listed on his grocery receipt with Aurora having approved keeping the tax on food.
"Bring it down, not up," he said.
On Tuesday night, the Aurora City Council informed the public that the west suburban city faces a $29.7 million debt.
City finance leaders said if the city failed to pass a grocery tax, they would lose $4.5 million in revenue.
"The grocery tax, if we're going to implement it, is October," said Aurora Mayor John Laesch.
Oct. 1 is the deadline by which Aurora and all municipalities must act in order to avoid losing revenue.
This comes after the state eliminates the 1% grocery tax on Jan. 1, 2026. While the tax is not new, it brings a revenue that Aurora needs.
"A number of residents have reached out to me, and understandably don't want this tax to remain in place," said Aurora Ald. Keith Larson (at-large).
Across the state, more than 500 cities and villages — including some in Cook, DuPage, and McHenry counties — have already voted to impose the 1% grocery tax that is set to expire statewide. Yet some cities and villages are letting the grocery tax expire and not reimposing it at the municipal level, saving people extra money given the rise in grocery prices.
Yet in a 7-5 vote, Aurora decided it could not do without the revenue despite the savings residents could have seen.
"State legislature gave us this opportunity — opportunity to help out our residents," said Aurora Ald. Ted Mesiacos (3rd), who voted against keeping the tax. "I'm not really a fan of taxes. Not a big fan."
But Mayor Laesch said the move was necessary.
"It was important that we pass this," he said. "We are going to have to continue to make tough choices.
The Aurora alders who voted against the grocery tax said if the city's budget changes, they would propose repealing the tax.
