‘Regretfully, yes’: Huntley enacts 1% grocery tax

Huntley is the latest municipality in the McHenry County area to go for a local grocery tax.

Illinois leaders opted, through legislation signed by Gov. JB Pritzker last year, to get rid of the 1% statewide grocery tax, effective Jan. 1. The tax revenue went to local municipalities, and several have opted to add back a local version of the grocery tax.

Adopting a local grocery tax won’t increase the overall sales tax, Village Manager Dave Johnson told the Village Board Thursday. Sales tax revenue makes up about 30% of Huntley’s general fund revenue and funds services like snow removal and public safety, Johnson said.

Without a replacement grocery tax, Huntley would lose out on an estimated $460,000 in fiscal year 2026 and $825,000 in fiscal year 2027, according to an analysis.

Losing those revenues could “necessitate program, personnel and service reductions,” Johnson said. There would also be a reduction in the general fund annual surplus, which would also reduce the amount of dollars available for infrastructure projects, Johnson said.

A mobile data analysis at Huntley grocery stores found that about 70 to 75% of shoppers come from out of town, Johnson said. He added that Huntley residents who shop in other communities might still encounter the grocery tax if those towns enact it.

The village board unanimously passed the tax.

Huntley Village President Tim Hoeft said he had been following the issue closely since Pritzker announced it in his budget address. Hoeft pointed out the 1% state grocery tax that’s going away always went to municipalities.

“We’re not implementing a new tax. We’re simply keeping what was already ours,” Hoeft said.

He said he personally met with the governor about six weeks ago about the tax and they went “back and forth on communication being key and how this affects every municipality in the state.”

Hoeft added Huntley is in two county organizations of government, one in Kane and one in McHenry, and every municipality official he talked to in those groups is also planning to implement the tax.

Trustee John Piwko, who ran unsuccessfully against Hoeft for village president this spring, said enacting a new tax isn’t something the village board wants to “do all the time,” but “in this case, we have to” put it on the books. Otherwise, he said, the quality of life would change for the worse.

Trustee Vito Benigno said the board’s job is to be fiscally responsible and provide services to the community and “the responsible thing to do” is maintain this source of revenue.

Said Trustee Ronda Goldman: “We cannot afford to lose $800,000.”

Regarding some concerns she’s seen posted by Sun City residents about the grocery tax, Goldman noted that it will be “a wash” for shoppers. The 1% state grocery tax will be replaced by a 1% local grocery tax.

Trustee Ric Zydorowicz said the board didn’t take the new local tax lightly, and none of the trustees wanted to raise taxes.

“This is a tough one. ... Nobody wanted to be in this position, but Springfield thought it was best that they take away something that wasn’t theirs,” he said.

When it was his turn to vote, Zydorowicz said: “Regretfully, yes.”

Other McHenry County municipalities that have chosen to enact a local grocery tax include Algonquin and Marengo. McHenry is expected to take up the matter later this year. Crystal Lake chose last year to raise its local sales tax on general merchandise, citing in part the potential loss of the grocery tax revenue.