Mundelein creates local 1% grocery tax — but revenue won’t arrive for months

Months after many neighboring towns took the same action, Mundelein trustees this week approved a 1% local tax on groceries to replace a state tax set to expire at year’s end.

But whereas the towns that acted before an October deadline can start collecting that tax Jan. 1, Mundelein’s grocery tax won’t become effective until July 1.

That means the village won’t see the tax money until October 2026.

The tax, approved by unanimous vote Monday, is expected to generate about $1.2 million annually for the village. The money will go into the village’s general fund, officials said.

Trustees voted without any public discussion of the proposal Monday night. They had discussed options at prior committee meetings.

Gov. JB Pritzker proposed dumping the state’s grocery tax in 2024. The change was enacted as part of the state budget approved that year.

In response, Mundelein officials increased the village’s sales tax rate that year to 8.25%, from 8%. The village board reconsidered its tax options in August 2024 after the state budget was approved, and trustees opted to leave the sales tax rate at 8.25%.

Arlington Heights, Buffalo Grove, Des Plaines, Geneva, Libertyville, Naperville, Palatine, St. Charles and Wheaton are among the towns that have created local grocery taxes. Officials in Gurnee and Bartlett instead chose to increase their towns’ general sales tax rates.