WASHINGTON, Ill. – The city of Washington is looking to join other central Illinois communities in implementing a local grocery tax.
A local one percent tax was discussed at Monday night’s City Council meeting, in the wake of the state eliminating its own one percent tax, starting next year.
A similar tax has been implemented in Pekin, and East Peoria Mayor John Kahl stated that his city is looking to do the same.
No action was taken at the meeting, as the city looked to gauge the opinions of aldermen. The city says it stands to lose around $500,000 each year, without the grocery tax being replaced on the local level.
Ward III Alderman Brian Butler says the city cannot afford to lose the revenue the tax generates.
“I think we need to be prepared to move forward, and not take the risk of leaving a half-million dollar hole in our budget every year,” Butler said.
Other arguments from aldermen in favor say the tax would have a major effect because it’s already in effect on the state level. There were also concerns about what services would have to be cut, and if the city could pay down pensions without the money.
Ward IV Alderman John Blundy says he always sees taxes go up, and never any opportunities to reduce them.
“If down the road, we need to look at it and we say we absolutely need that money, then okay, let’s go get it,” Blundy said. “I would say ‘Hey, let’s take a chance to cut some tax’.”
Ward I Alderwoman Lilija Stevens also argued against the tax, saying it was an opportunity to help people’s grocery bills in the current climate. She also stated people would do their shopping in other towns, if the tax were to remain.
No action was taken on a potential ordinance to implement the tax.
