Geneva OKs 1% grocery tax to keep ‘critical’ revenue

As expected, the Geneva City Council has unanimously approved a 1% grocery tax to make up for the state ending its own version.

Mayor Kevin Burns also voted yes at the Monday evening meeting.

The 1% sales tax brings in revenue of about $700,000, City Administrator Stephanie Dawkins said.

“To mitigate the loss of revenue to local governments, the state concurrently authorized municipalities to impose a local 1% grocery sales tax without a referendum,” Dawkins said. “The proposed ordinance seeks to implement this local tax to maintain vital revenue currently supporting the city’s General Fund.”

At the city’s special Committee of the Whole meeting on June 7, staff outlined the potential revenue impact and shopping data that revealed approximately 60% of grocery store visits originate from customers outside the Geneva ZIP code of 60134, Dawkins said.

This suggests a significant portion of the tax burden would be shared by non-residents, she said.

“This is a situation where the state has offloaded this back onto the municipality,” 3rd Ward Alderperson Dean Kilburg said. “It is important for us to preserve these revenues, which are critical to the city’s budget.”