On Monday, Illinois Governor JB Pritzker took a significant step towards reducing the burden on consumers by signing a local government tax bill.
The bill eliminates the state tax on grocery items, effective from January 1, 2026. However, local governments have the option of imposing the one percent tax on grocery items intended to be consumed off-premises. It is worth noting that Illinois was previously one of only 11 other states to tax groceries.
In addition to repealing the state tax, the bill also legislates other municipal tax code rules and regulations, including prepaid wireless surcharges and a hotel operators’ occupation tax.