Sandwich votes to implement 1% grocery tax

Sandwich has decided to implement its own grocery tax in light of the state’s 1% grocery tax expiring on Jan. 1.

Like other municipalities, Sandwich receives a share of that tax. That includes revenues from convenience stores.

Art’s Food Market is located in Sandwich. Other stores in Sandwich, like Dollar General and Walgreens, also sell food products.

At the June 16 Sandwich City Council meeting, the majority of City Council members voted to approve a 1% grocery tax. Voting “no” were 1st Ward Alderman Matt Chunn and 3rd Ward Alderwoman Karsta Erickson.

Chunn said he voted against the city adopting its own grocery tax because of the state’s new taxes that go into effect July 1 as part of a new state budget.

Those new taxes include placing a per-wager tax on sports betting in the state and increasing taxes on tobacco and vaping products.

“I know it’s not a new tax, but everyone feels like it’s a new tax,” Chunn said. “I don’t want to add it to what Illinois is already doing.”

Without the city implementing its own 1% grocery tax, the city could lose about $20,000 a year in revenue when the state’s grocery tax expires next year. That number could increase once a Dollar Tree store at 3725 Drew Ave. is up and running, Sandwich Mayor Todd Latham said.

Construction of the new store is set to begin in the coming weeks.

“They will start selling food products right adjacent to our neighboring community Plano,” Latham said.

Municipalities that want to implement a 1% local grocery tax that would take effect on Jan. 1 must approve an ordinance and file it with the Illinois Department of Revenue by Oct. 1.

Latham noted the state did not consult with communities like Sandwich before making its decision to do away with the grocery tax. He said he doesn’t think most people would notice whether the tax is removed or not.

Other communities like Montgomery and Yorkville have also approved a 1% local grocery tax.