Batavia plans to continue collecting grocery tax, despite state repeal

Batavia is among hundreds of municipalities in Illinois considering whether to create a local grocery tax in response to the state’s decision to eliminate the current one after 2025.

Illinois will eliminate a statewide 1% sales tax at grocery stores on Jan. 1, 2026. However, Batavia shoppers aren’t likely to see a change at the checkout line because the city plans to impose an identical tax.

Batavia Committee of the Whole members have recommended that the city approve an ordinance continuing the grocery tax.

City Administrator Laura Newman said eliminating the tax would mean an annual reduction of about $1.2 million in revenue.

“Not implementing this would mean that we need to either cut expenses or find an alternate revenue source,” Newman said. She added that the only viable source would likely come from property taxes.

Newman said according to statistics from the Illinois Department of Revenue, 225 municipalities have already approved ordinances implementing a grocery tax.

The ordinance must receive city council approval by Oct. 1 to ensure it is implemented on Jan. 1, 2026.

Newman told committee members that the locally implemented tax would be identical to the current tax, as the language in the ordinance mirrors the state statute exactly.

The ordinance is expected to go before the city council for possible final approval at its May 5 meeting.