Moline City Council on Tuesday unanimously agreed to create a municipal grocery tax in place of the state grocery tax sunsetting on Jan. 1, 2026. The tax was collected by the state of Illinois on behalf of municipalities, but in August of last year, Gov.
J.B. Pritzker signed a bill eliminating the tax in 2026, while granting municipalities the authority to levy it regardless of home rule status.
After passing the city tax in committee of the whole and on the first reading, the council gave its final approval during its regular meeting on Tuesday. Although several Moline aldermen would have preferred to replace the revenue generated by the tax with a more incremental taxation model, on Tuesday officials reiterated that uncertainty caused by a dramatic change in federal financial policy leaves little room for experimentation. “Recent reports indicate the U.
S. Department of Housing and Urban Development may face significant housing reductions which would severely impact the administration of (Community Development Block Grants and) HOME, disaster recovery and homelessness assistance programs,” Ald. At-Large James Schmidt read aloud from a staff report.
“(The) proposed 84% staff reduction at the HUD’s Office of Community Planning and Development would hinder program operations (and) put funding at risk, potentially leading to deep program cuts or even the elimination of some initiatives.” The HOME investment partnerships program in particular is one of the largest feder.
