Starting on January 1st, the State of Illinois will no longer be collecting the 1% grocery sales tax that goes back to the municipality. The state has portrayed it as a tax cut, but communities all around the state are already enacting their own 1% grocery sales tax to make up for the shortfall. For the City of Vandalia, that shortfall is estimated to be in excess of $200,000 a year. The City can enact their own 1% grocery tax and will have to inform the state of that decision by October 1st. The matter was discussed for a short time at Monday’s Vandalia City Council meeting and is expecting further discussion at their July 21st meeting.
Speaking on our podcast, “Talking about Vandalia,” Mayor Doug Knebel says this is a pretty large shortfall and that money would come out of the general revenue fund–the fund used for things such as police and fire protection. He says the 1% grocery sales tax is probably the fairest way and also the one that puts the least amount of burden on City of Vandalia taxpayers.
As for the state making the cut of the grocery tax, Mayor Knebel says it did play out as a bit of a gimmick.
The Vandalia City Council is expected to further discuss the matter at their July 21st meeting. Meanwhile, you can listen to this week’s podcast and all of our past podcasts by going to the podcast tab on our website at www.vandaliaradio.com.
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