Grocery tax here to stay in DeKalb

DeKALB – When the state grocery tax lifts on Illinoisans in January, DeKalb purchases will continue to be taxed locally, the DeKalb City Council voted this week.

The grocery tax, as passed in a pair of 5-2-1 votes, will take effect locally Jan. 1, the day the state grocery tax expires. Dissenting votes were cast by 6th Ward Alderman Mike Verbic and 7th Ward Alderman John Walker. First Ward Alderwoman Carolyn Zasada was absent due to work, she said.

Fourth Ward Alderman Justin Carlson, the council’s newest member, said he doesn’t see imposing a local grocery tax as a partisan issue.

“I see momentum, I don’t want to stop it,” Carlson said. “If it’s at no increase to the taxpayer, they’re paying the same. Keep this momentum going. Keep believing in our police department. Keep believing in our fire department.”

DeKalb joins a growing list of northern Illinois municipalities to take up the tax, including Genoa, Sandwich and Shabbona as of Wednesday. For months, city officials have argued the tax was necessary. City Manager Bill Nicklas said it was needed to prevent revenue loss for the police, fire and public works departments.

[ Which northern Illinois towns have enacted a 1% grocery tax? Check our list ]

Sycamore city officials have not held a vote, although earlier this spring, they expressed preliminary support for it. On Tuesday, Cortland Mayor Mark Pietrowski announced via social media that Cortland officials voted not to enact a local tax.

Gov. JB Pritzker’s plan to repeal the 1% statewide grocery tax was pitched by some lawmakers as a chance to relieve financial burdens at the grocery store. But some municipal leaders across the state have decried that the tax was lifted without a plan to replace what could be a significant loss of revenue for some.

DeKalb city staff have said the city stood to lose about $800,000 in lost tax revenue if a grocery tax wasn’t continued. Some, such as 3rd Ward Alderman Tracy Smith and 2nd Ward Alderwoman Barb Larson, said that funding would need to come from somewhere to maintain service quality.

Not everyone was on board with imposing a local grocery tax, however.

Verbic said he doesn’t believe the city has done its due diligence. He argued the city should use its finance committee to consider funding alternatives.

“The intent of this is to save grocery shoppers a little bit of money as possible,” Verbic said before the vote. “I think we should do that, if possible. ... I think that this particular change should be a last resort instead of a first resort.”

Mayor Cohen Barnes earlier this month blamed partisanship for what he said was leaving municipalities little choice but to enact a local tax.

On Monday, he offered support to city staff for the plan.

“This $800,000 is critical for our operations,” Barnes said. “I commend City Manager [Bill] Nicklas and the entire admin staff for doing everything they can to operate as lean as we possibly can. In fact, if we had $800,000 to cut out of the budget, then shame on us the last four years. We should have cut it out then. We don’t.”

Fifth Ward Alderman Andre Powell said he supports the tax locally because it already exists.

“It’s not like we’re adding something new,” Powell said. “It’s minimal to a household compared to the city budget. I think we go looking trying to make up funds for something we’re losing, it begins to be a real burden.”

In a public statement posted on social media before the meeting, Zasada explained why she wouldn’t be present and said she would have voted for the tax if present.

“Originally, I was opposed on the face of it because grocery taxes are regressive,” Zasada said. “However, deeper policy impact research has demonstrated that the impact on individuals is extremely marginal. I’ve consulted with a variety of people, and it seems the negative impact on the city if we didn’t enact this tax is substantially greater than the positive impact on families.”