Monee village officials are taking a look at implementing a 1% grocery tax as the State of Illinois prepares to end its own.

The Illinois state grocery tax is set to be eliminated effective January 1, 2026, per Public Act 103-0781. Many other municipalities, like Monee and Beecher, have been considering the option to maintain the tax by passing an ordinance and filing it with the Illinois Department of Revenue by October 1.

The state grocery tax began in 1990 as part of sales tax reform,  eliminating state taxation on groceries but allowing for the nominal tax that was distributed to local governments.

The tax is applied to all food products for human consumption that are to be consumed off the premises where they are sold,  including carry-out and delivery orders.

Local municipalities are considering creating their own replacement tax to make up the funding loss that will result beginning on January 1, 2026.

In Monee, that amounts to about $30,000 a year, according to Dr. Therese Bogs, village mayor.

During the board of trustees meeting on July 9, she raised the issue of a local grocery tax.

“I know we had mentioned in previous meetings about the grocery tax,” she said.

“So I just wanted to give a little information. I know we still are contemplating whether this is something we want to go through with, or not.

“The 1% sales tax on groceries currently is levied by the State of Illinois, and they are going to be repealing that. But we have the opportunity to pick that up as a municipality.

“So, basically there is not an additional tax. It’s just not coming from the state. It would be coming from the municipality. 

“And basically all that is doing is giving us working capital. So, it’s a dollar for every $100 spent.

“We can phase into this,” she noted. “It’s not necessarily written in stone, it has to be passed by a certain time.

“It’s still open to discussion whether or not this is something we want to implement here.

“We currently stand at $30,000 that we get from the 1% sales tax.”

Bogs said the Illinois Municipal League has asked where the village stands on the issue. She added that numerous other area villages, including Tinley Park, Orland Park, Crete, Homewood, Shorewood, and Wilmington all have opted to implement a replacement tax.

During brief discussion, Village Trustee Douglas Horne asked if the $30,000 figure mentioned was an estimate or the actual amount of revenue received.

Monee Finance Director Darryl Bulliner confirmed it is the actual amount.

“Yes, we would be out the $30,000,” he said. “That’s what we’re collecting now.”

Bogs reiterated that the state now collects the tax and disperses it to the village. Under the village grocery tax, Monee would collect the money directly.

No action was taken.

During the village administrator’s report, Ruben Bautista asked the board to approve the purchase of two 2024 Chevrolet Tahoe Police Utility Squads, through the South Suburban Purchase Cooperative in the amount of $114,128. 

“The village is committed to proactively upgrading its police fleet through a proactive and fiscally responsible fleet management strategy. This involves scheduling purchases of two-to-four new squad vehicles each fiscal year and efficiently reassigning older models to other departments, extending their useful life within the village and supplementing those department fleets,” he said. 

“Chief Koerner has budgeted for the acquisition of two new police vehicles in FY2025.”

Trustee Horne asked Koerner how old and how much mileage the retiring units have. Koerner said they are both patrol units, 2019 and 2020 models, with a 85,000 to 90,000 mile range.

Horne asked how the village disposes of them.

“We drive them over to EMA (Emergency Management Agency) and put them in front of the door,” Koerner deadpanned, “and they disappear.”

“So they use them?”

“Yes, they do. They are going to use them for a number of years,” Koerner said.

“If we have good vehicles, they go to EMA. That happens every year.”

The motion was approved by Trustees Horne, John Henson, and Chuck Rakis, with Mayor Bogs also voting. Trustees Heidi Gonzalez, Scott Youdris, and Michael Wilson were absent.

Also during his report, Bautista asked the board to approve a one-day liquor license for the Monee Historical Society’s upcoming event.

“The Monee Historical Society will be hosting its annual Art Auction and Wine Reception Event at the Heritage Center on Saturday, August 9,  from 3 to 7 p.m., to celebrate the Village of Monee’s rich history,” he explained.

“As part of the day’s planned event, there will be a live musical performance by the Doug Horne Quartet, followed by a wine and cheese reception. The reception will be a ticketed event to help raise funds for the Monee Historical Society. Ticket purchasers over the age of 21 will be given wristbands allowing wine purchase. No beer or hard liquors will be sold at the reception. Additionally, cheese/charcuterie boards will be available to attendees, which is included in the ticket price. 

“It is important to note the Historical Society has provided the village with a certificate of liability holding the village ‘harmless’ for this event.” 

The motion was carried unanimously.

In the Finance Report, Trustee Rakis noted that:

  • The general fund for the month of June had revenues of $2 million dollars and expenses of $1.6 million. The general fund balance as of June 30 is $4.5 million.
  • The administration currently is working on the FY 26 budget.
  • The finance department also is working on the municipality’s treasurer’s report for FY 25. This report is required by the State of Illinois. The treasurer’s report includes revenues, expenditures, and changes in fund balance. Key information will include vendor payments and employee compensation. The report provides transparency and accountability in the municipality’s financial management.

In his public works report, Trustee Horne noted branch pick-up is scheduled for Monday, July 21.

In the building services report, Trustee Henson said there were 361 inspections, 64 permits issued, 170 enforcements opened, 26 contractors registered or renewed, 100 rental licenses renewed – with many still outstanding – and 14 occupancy inspections scheduled.

“There were 361 total inspections, and we basically have three people doing all that,” he said. “So I just hope everybody realizes what the building services department is going through, and that’s in one month. I just want to say thank you to my guys and gals over there for not losing their mind.”