Streator Considers Local Grocery Tax as State Repeals Its Own

Beginning January 1, 2026, the State of Illinois will officially eliminate its 1% grocery tax. Governor J.B. Pritzker signed the change into law on August 5, 2024, as part of HB3144—the Local Government Tax Omnibus Bill passed alongside the state’s 2025 budget.

While the tax will no longer be collected at the state level, the legislation allows local governments to adopt their own version of the grocery tax through ordinance. The Streator City Council will consider such an ordinance at its upcoming meeting on Wednesday, July 16.

The grocery tax has a complex recent history. It was temporarily suspended in 2022 during a period of high inflation and reinstated in July 2023. The repeal set for 2026 is positioned as a permanent change at the state level, though municipalities now have discretion to continue it locally.

Councilman Daniel Danko, responding to an email inquiry from the Streator Standard, said that the change will have budgetary impacts for the city.

“The 1% grocery tax was implemented and carried out on a state level for over 30 years and redistributed to communities throughout Illinois,” Danko wrote. “Illinois has decided to end collecting this particular tax on January 1, 2026 without any consideration for the shortfall it will create for communities.”

Danko estimates the potential revenue loss for Streator could fall between $200,000 and $300,000 annually. He noted that staffing makes up a significant portion of the city’s expenses, and reductions in revenue could lead to service cuts.

“With the events of this last year and everyone’s focus on safety, we cannot afford to lose any of our valuable staff,” Danko added. “This will not be an additional tax or a new tax but a continuation or a replacement of the grocery tax. Shoppers will see no difference in grocery cost from the tax and it will apply to all shoppers regardless if they live in the city or not.”

The Streator Standard reached out via email to Mayor Tara Bedei and all members of the City Council for comment on the proposed ordinance. Councilman Danko was the only member to respond.

The grocery tax discussion was also part of the July 2025 Committee of the Whole meeting. However, as of press time, neither the minutes of that meeting nor the video recording have been made available on the City of Streator’s website or official YouTube page.

Public Response

Reactions from residents have been mixed. Several comments posted on social media questioned the need to continue the tax locally.

“Say no to grocery tax—that's ridiculous. People are having a hard time buying groceries now,” wrote Shaun Moran.

Kara Anne commented, “Big Gov gave us a break on our grocery tax! He patted himself on the back for eliminating it. He was just hoping nobody knew that helped at the local level.”

Kevin Neaterour added, “Maybe skip the tax break for the corporation instead of taxing the working person’s groceries. Like Warren Buffett said, we have to stop coddling the rich.”

While much of the conversation online expressed opposition, some residents pointed out that maintaining the tax locally may help avoid service cuts without raising new taxes elsewhere.

Next Steps

The Streator City Council meeting will be held on Wednesday, July 16 at 7 p.m. at City Hall. Public comment is scheduled during the meeting, and the proposed ordinance is expected to be part of the evening’s agenda.

If passed, the local grocery tax would take effect on January 1, 2026, coinciding with the expiration of the state tax.