River Forest considering local grocery tax hike

Illinois is cutting the statewide grocery tax, but some local governments may reestablish it. One Chicago suburb is already moving in that direction. Its neighbor will let taxpayers keep their grocery money.

Illinois is ending its 1% grocery tax, but your town has the ability to bring it right back.

River Forest is expecting to institute a local grocery tax worth $1 million a year. Neighboring Oak Park has no plans to add taxation to replace the roughly $1 million it will lose.

When Illinois joins 37 other states by ditching its grocery tax, local municipalities such as River Forest can choose to keep it. Village leaders are moving in that direction.

River Forest village administrator Matt Walsh said local leaders will adjust the budget based on the axed grocery tax.

“Losing that revenue would potentially mean the reduction in services or the replacement of that revenue with other sources, which would have a negative impact on taxpayers,” Walsh said.

So, letting taxpayers keep $1 million a year would hurt taxpayers?

River Forest ended fiscal year 2023 with a $2.3 million surplus and projected 2024 would end with a $4.3 million surplus. It bumped by $5.5 million its general fund spending for 2025, up from $35.4 million to $40.9 million.

Yet it cannot figure out how to let its Whole Foods and Jewel-Osco customers get a break without “hurting taxpayers.”

Neighboring Oak Park is figuring it out, and stands to lose about $1 million a year just like River Forest. Oak Park interim chief financial officer Donna Gayden said the village has no plans to raise taxes to make up for the grocery tax loss.

Gov. J.B. Pritzker heard pushback from local governments about how ending the grocery tax would only impact them and not the state. Pritzker countered that local governments have seen increased support from the state.

“The idea that state government is somehow starving township, city and county governments, as some mayors and county board members now claim, is preposterous,” Pritzker said in March.

If you think River Forest should give up the grocery tax permanently, contact the village board directly using the form below. Your email will be delivered directly to the eight members of the village board, including Board President Catherine Adduci.