SAVOY — Customers in Savoy will continue to pay a 1% grocery tax next year.
The Savoy Village Board voted unanimously Wednesday to maintain a local version of the tax starting in 2026, when Illinois is set to phase out the statewide tax.
“This is not a new tax, but rather a longstanding revenue source for the village of Savoy and for every community in Illinois that’s been in place for decades,” said Village Administrator Andy Quarnstrom during an August 6 board meeting.
The tax represents one cent for every dollar spent on food products at a grocery store. It will not apply to other items available at a grocery store such as home goods, alcohol, soft drinks and candy.
The current statewide grocery tax accounts for $350,000 to $450,000 in revenue for Savoy, according to village documents.
State officials have called the approach “a regressive tax” that impacts lower-income households the most.
Quarnstrom said 219 other towns have implemented a local version of the grocery tax. That list includes several other Central Illinois communities such as Urbana, Mahomet, Danville and East Peoria.