A 1% Elgin grocery tax will replace the Illinois grocery tax being phased out by the state, with the $1.2 million in revenue being used to partially fund Elgin’s lead service line replacement program, the Elgin City Council decided Wednesday.
Municipalities around the state have until October to decide on whether to implement a local tax in advance of the state tax that ends on Jan. 1. The provision allowing the local grocery tax was part of the legislation sunsetting the state tax.
Neighboring communities, including Carpentersville, East Dundee, West Dundee, and South Elgin, have also passed ordinances to create the new tax.
City Manager Rick Kozal said that were the city not to adopt the measure or something that would bring in new money, the city budget’s general fund would take the