'Putting the onus on us': Washington latest Peoria-area city to discuss local grocery tax

Yahoo

06-03-2025

Washington is the latest city in the Peoria area to discuss instating a local grocery tax increase to replace revenue lost when the state of Illinois removes its 1% state tax starting in 2026.
East Peoria Mayor John Kahl announced last week the city would institute a 1% grocery tax to cover the expected $2 million shortfall, while Pekin also instituted a similar tax on November to make up for a estimated $1.5 million loss. Peoria Mayor Rita Ali said last year the city is working on a plan to cover the possible $4 million it will lose.
City officials say Washington would lose $500,000 in annual revenue if its does not institute its a local tax. In response, the Washington council shared opinions about the tax, but no vote or action was taken.
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Councilmember Brian Butler said the council should not view the move as a tax increase, but rather a shift of burden from the state to the city.
'It's simply a move from the General Assembly washing their hands of it, because that's money that came to cities anyway. Now they're putting the onus on us,' Butler said. 'The tax is in effect now. I believe we need to keep it in effect, but it takes a hard decision on our part. We look like bad guys, but we have to do the tough work sometimes, and I believe we really need to. It's no impact on anybody.'
Council member Bobby Martin III said if the city is going to lower taxes, it should do it from local property taxes instead since cutting the grocery tax would benefit the large number of non-Washington residents who come to the city to shop.
Other councilmembers expressed concern about city services needing to be cut, or if taxes would need to be raised to make up for the money used to help feed Washington's police pension fund that must be paid by 2040.
Council member Brett Adams said avoiding tax raises is unrealistic, and he worries the city would eventually be forced to levy an even bigger tax in the next few years to collect necessary money for city projects.
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'To continually say that the answer is 'Just don't raise our tax,' then start thinking about the multitude of millions of dollars worth of things that you're not going to pay for, because it's not reality,' Adams said. 'Costs continue to go up every year.'
Mike McIntyre said a 1% tax is a minimal amount of money, and he would hate to see the city have to push a Home Rule Sales Tax instead to recover if the grocery tax didn't pass.
Despite support from half the council, concerns about grocery costs caused hesitation for other members.
John Blundy said during his time on council he's seen taxes increase, but has hardly ever seen them go down. He said the city should wait until the money is really needed, since the grocery tax can be implemented any budget cycle.
Mayor Gary Manier countered if the city waits until January 2026 to reinstate the tax, it will feel like a brand-new tax to citizens after a year without it.
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Illinois Gov. JB Pritzker defended ending the tax during an appearance in Peoria last year, calling it an "embarrassing" and "regressive" tax.
Council member Lilija Stevens, running for Mayor, argued against the tax, saying not establishing it would help lower grocery costs even if minimally. She also pointed out a city bond from 2006 supporting Five Points, set to retire in 2029, will bring in $360,000 the city could use.
'I probably might feel differently if we were a city that would be losing a couple million dollars,' she said. 'I personally do not want to create another ordinance for this tax money.'
This article originally appeared on Journal Star: Washington proposes 1 percent grocery tax after end of Illinois tax