Bourbonnais trustees approve ordinances dealing with sales tax, grocery tax

BOURBONNAIS – During Monday’s meeting, Bourbonnais trustees approved a 1% grocery tax.

It will go into effect on Jan. 1, 2026.

In August 2024, Gov. JB Pritzker signed legislation eliminating the tax. The state became the 38th to get rid of its grocery tax.

Pritzker had proposed eliminating the state’s 1% sales tax on groceries as part of his 2025 budget plan, saying the tax was regressive and hurt low-income Illinoisans.

Bourbonnais receives $750,000 in sales tax funds annually from the state.

However, the state gave municipalities the option of enacting the 1% grocery tax by ordinance. More than 160 communities statewide have approved the grocery tax, officials said.

Rebate program

Trustees passed a second ordinance adding a 1% sales tax with funds collected being used to rebate the village’s portion of a single-family homeowner’s property tax bill.

The legislature last year gave non-home rule municipalities the opportunity to impose the tax via an ordinance rather than through a referendum.

The village tried two times to raise the 1% sales tax via referendum. Both were voted down.

The 1% increase on the sales tax will increase Bourbonnais’ current rate of 6.25% to 7.25%. In the business district, the total would go from 7.25% to 8.25%.

This tax does not apply to groceries, prescriptions, medical appliances and titled goods such as cars, boats or RVs.

This tax would not go into effect until Jan. 1, 2026.

The average savings for a homeowner would be between $160 and $180, village officials said.

“While these taxes affect our residents, they also affect anybody who spends money in Bourbonnais, whether they live here or not,” Administrator Mike Van Mill said at an earlier finance committee meeting.