A little further explanation on the grocery tax that the City of Vandalia and many other municipalities are looking to potentially enact their own.
At this time, the State of Illinois has a 1% grocery sales tax, with that money going to the local municipalities. But, the state is eliminating that 1% grocery sales tax on January 1st—which would lead to a loss of tax revenue for local communities. And, for the City of Vandalia, it is estimated they could lose about $200,000 per year. Speaking on our podcast, “Talking about Vandalia,” Mayor Doug Knebel uses an example of how much revenue that costs Vandalia when compared to some other neighboring communities.
And, Mayor Knebel points out the 1% grocery sales tax goes directly into the general revenue funds.
The matter is on the agenda for tonight’s Vandalia City Council meeting. If approved by the City Council, it would just keep the 1% grocery sales tax in place after the state ends it.
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