More than half of Illinois communities have enacted a local grocery tax

Illinois (CNI) - Illinois will stop levying a statewide grocery tax on Jan. 1, but millions of people throughout the state will continue paying it locally.

Data compiled by the Illinois Municipal League released Monday shows that 656 municipalities — a little more than half of the state’s municipalities — have passed an ordinance establishing their own grocery tax. Those communities are home to 7.2 million people, or 56.5% of the state’s population. Three counties – Washington, Wabash and Moultrie – have also approved countywide grocery taxes.

Gov. JB Pritzker signed a bill last year eliminating the 1% statewide grocery tax, touting it as a measure that eased residents’ tax burden.

However, the revenue from the state grocery tax goes to municipal governments, rather than state coffers.