Edwardsville Aldermen Approve Grocery Sales Tax, Avoiding Revenue Loss

EDWARDSVILLE – Edwardsville is the latest Riverbend community to establish its own 1% sales tax on groceries to offset major revenue loss as the state’s grocery tax expires.

City Council members on Tuesday unanimously approved an ordinance implementing a city-wide Municipal Grocery Retailer’s Occupation Tax and a Municipal Grocery Service Occupation Tax. These taxes will take effect starting on Jan. 1, 2026.

The Illinois General Assembly voted last year to eliminate the state’s 1% sales tax on groceries, from which 100% of the proceeds went to local municipalities. They later passed a law allowing municipalities to impose their own 1% sales taxes on groceries, but only if they also adopt an equal 1% sales tax on grocery “services.”

According to Tuesday’s meeting documents, city staff estimate the elimination of the 1% grocery sales tax would amount to a loss of over $1.2 million from the city’s General Fund. This grocery tax also accounts for more than 11% of the city’s total sales tax revenue.

“Those funds support essential services our residents rely on such as public safety, public works, parks and funding of capital equipment and improvements,” according to city staff.

“Nonresidents help support these essential services by shopping at grocery stores in the City and this tax is not a new tax, but merely replacing the previous statewide imposed grocery tax.”

This follows the Wood River City Council voting 3-2 to pass a similar ordinance on Monday night, implementing their own city-wide 1% sales taxes on groceries and grocery services. More details about that ordinance are available in this story on Riverbender.com.

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