‘It’s horrible for governance,’ Rockford preps for grocery tax elimination in 2026

ROCKFORD, Ill. (WTVO) — Mayor Tom McNamara expressed his frustration with Governor JB Pritzker’s decision to turn the 1% grocery tax to the municipalities.

“I think it’s really ridiculous and I may not be popular in saying this, but the state of Illinois didn’t receive a single penny from the grocery tax,” McNamara said. “Cutting this and being able to be putting on their mailers and things of that nature, that’s fantastic for politics. It’s horrible for governance.”

Unless the local municipalities choose to continue the grocery tax, it will be eliminated starting January 1 of 2026.

The tax brings in nearly $8,00,000 in revenue to the city’s “General Fund,” which Mayor McNamara said funds employees for police and fire officials.

“This is really taking revenue from the very basic things that residents need and that government should be providing,” the mayor said.

For a village like Roscoe, President Carol Gustafson said its general fund would be out $100,000.

“That’s equivalent to one police officer to start out,” Gustafson said. “It’s also equivalent to all of the vehicles in Public Works department or if we were to put in a new playground with all of the mulch.”

Gustafson and the board of trustees met Tuesday night to discuss the continuation of the tax. The Village President said it would be the first of many meetings on this to come.

“I would like to hope that the board would recognize that maintaining services is important and maintaining those services can come at a minimal cost per family,” Gustafson said.

Mayor McNamara said he is proud of the progress Rockford has made in reducing crime and he said he doesn’t want the city to move backwards.

“We’re finally where we need to be when it comes to reducing crime,” McNamara said. “We’re getting there. Now’s not the time to start de-funding all of the services.”

The municipalities will have to decide by October 1, 2025 if they want to continue a local grocery tax. Otherwise, they are tasked with finding other ways to source those funds.