Batavia plans to continue collecting grocery tax, despite State repeal

Batavia is among hundreds of municipalities in Illinois considering the creation of a local grocery tax in response to the state’s decision last spring to eliminate the current one after 2025.

Illinois will eliminate a state-wide 1% sales tax at grocery stores on Jan. 1, 2026, but Batavia shoppers aren’t likely to see a change at the checkout line, as the city is planning to impose an identical tax immediately succeeding the elimination.

Batavia Committee of the Whole members were in favor of continuing the grocery tax and recommended approval of an ordinance to implement it at their April 29 meeting.

Batavia City Administrator Laura Newman said the elimination of the tax would mean an annual reduction of about $1.2 million in revenue.

“Not implementing this would mean that we need to either cut expenses or find an alternate revenue source,” Newman said. She added that the only viable source would likely be from property taxes.

Spokesperson for the Illinois Department of Revenue Maura Kownacki said, as of April 30, 163 municipalities have passed their own grocery tax ordinances thus far, including Algonquin, Sugar Grove, South Elgin, North Aurora and Elburn in Kane County.

The ordinance must receive City Council approval by Oct. 1 to ensure it is implemented on Jan. 1, 2026.

Newman told committee members that the locally-implemented tax would be identical to the current tax, as the language in the ordinance mirrors the state statute exactly.

The ordinance is expected to go before City Council for possible final approval at their May 5 meeting.