Highland Park may add 1% grocery tax to offset loss of state funds

Highland Park officials are hoping to counteract a decision made at the state level earlier this year that would cost the city upward of $800,000 in tax revenue.

City Manager Ghida Neukirch said during the city council’s Dec. 16 meeting that officials are planning to bring forward a recommendation for council consideration in the spring of next year for a 1% tax on the sale of groceries.

In August of this year, Illinois Gov. JB Pritzker signed legislation eliminating Illinois’ 1% tax on groceries starting in 2026. The impact of losing that revenue for the City of Highland Park is about $830,000, Neukirch said.

According to Neukirch, other municipalities such as Palatine and Bannockburn, have already advanced a 1% tax to make them revenue neutral. She added that state officials have indicated municipalities should do this if they need to be made whole on those taxes.

If approved, the 1% tax would take effect Jan. 1, 2026. The measure will first come up for consideration during a special Committee of the Whole workshop presentation and will require formal action at a future City Council meeting.

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