Wood River Council Votes 3-2 To Keep Grocery Tax
WOOD RIVER – The Wood River City Council narrowly approved an ordinance on Monday replacing the state’s expired 1% sales tax on groceries with the city’s own 1% taxes on groceries and grocery “services.” According to the ordinance, the State of Illinois recently eliminated its 1% sales tax on grocery items; 100% of the revenue generated by this tax went to local municipalities. Without this sales tax revenue, Wood River estimates an annual loss of $800,000, which “creates an undue hardship on City.” To help local municipalities make up for the lost revenue, the Illinois General Assembly later passed a law allowing each municipality to put their own 1% grocery sales taxes in place. However, any municipality that imposes their own grocery sales tax is also required to impose a “service tax” at the same rate; Wood River’s 1% sales tax would be implemented alongside a 1% “service tax.” “ City has determined
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