St. Charles, Geneva approve 1% grocery taxes

Choosing not to part with $2 million in possible revenue, St. Charles will enact a 1% grocery tax in 2026, replacing the stage tax that will end Jan. 1.

City council members approved the ordinance Tuesday in a 9-1 vote without discussion. Alderman Ryan Bongard cast the sole no vote.

The Geneva City Council also approved a local grocery tax Monday.

St. Charles has several grocery stores, including Costco, Meijer, two Jewel-Oscos, Walmart, Target, Aldi, La Huerta and the newly opened Whole Foods.

In recommending the move, city staff called it maintaining the “status quo” rather than enacting a new tax on residents.

While residents and business owners suggested getting rid of the tax would drive business to St. Charles stores, increasing sales and offsetting the loss of revenue, city staff said the losses would be too detrimental.

Finance Director Bill Hannah said in June that the city would lose about $2 million in annual revenue if it lets the tax dissolve. The city historically has used the tax to attract grocery stores to St. Charles, citing past incentive agreements with Costco and Whole Foods.

Mayor Clint Hull said it was ultimately the cuts to services that would be needed without the tax revenue that led to the decision.

“It wasn’t an easy decision,” Hull said. “It never is when you’re talking about trying to impose any sort of tax.”

Under legislation eliminating the statewide grocery tax, municipalities have until Oct. 1 to enact their own local taxes, which will take effect in January 2026.