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O-41-25 Amending Title 3 of the Municipal Code Implementing a4118 I111cain ' tfe,e i Leallont, 1L 60439 TO: Village Board Meeting FROM: Darshana Prakash, Finance THROUGH: George Schafer, Village Administrator SUBJECT: An Ordinance Amending Title 3 of the Municipal Code Implementing a Municipal Grocery Retailer's Occupation Tax and Municipal Grocery Service Occupation Tax in the Village of Lemont DATE: August 11, 2025 ►1 ►i : 61XrT:U01101�7 On August 4, 2024, State of Illinois Governor Pritzker signed legislation repealing the State of Illinois 1% grocery tax, effective January 1, 2026. Currently, this tax is collected by the State and distributed to local municipalities, including the Village of Lemont. The Village of Lemont receives approximately $400,000 annually from this revenue source, which is critical to maintaining existing service levels. Several municipalities in all three counties adjacent to Lemont have adopted this tax locally: Downers Grove, Westmont, Woodridge, Clarendon Hills, Romeoville, Plainfield, Shorewood, Mokena, Tinley Park, to name a few. Attached is a list prepared by Illinois Municipal League for statewide list of municipalities that have adopted the grocery tax locally. If the Village intends to implement the local grocery tax effective January 1, 2026, the ordinance must be approved and transmitted to Illinois Department of Revenue (IDOR) no later than October 1, 2025. IDOR will then administer and collect the 1 % local grocery tax on behalf of the Village and remit the funds to the Village. ANALYSIS Consistency with Village Policy Budget (if applicable) STAFF RECOMMENDATION Approve the Ordinance as amended. BOARD ACTION REQUESTED Approve the Ordinance as amended. ATTACHMENTS Ordinance Amending Title 3 Grocery Retailers' Occupation Tax - 8.11.25.pdf IML list as of 7-31-2025.pdf VILLAGE OF LEMONT ORDINANCE NO. " (� AN ORDINANCE AMENDING TITLE 3 OF THE MUNICIPAL CODE IMPLEMENTING A MUNICIPAL GROCERY RETAILERS' OCCUPATION TAX AND MUNICIPAL GROCERY SERVICE OCCUPATION TAX IN THE VILLAGE OF LEMONT Adopted by the President and Board of Trustees of the Village of Lemont this I I` day of August 2025 Published in pamphlet form by authority of the President and Board of Trustees of the Village of Lemont, Cook, DuPage, and Will Counties, Illinois this 11" day of August 2025 ORDINANCE NO. UA-�b AN ORDINANCE AMENDING TITLE 3 OF THE MUNICIPAL CODE IMPLEMENTING A MUNICIPAL GROCERY RETAILERS' OCCUPATION TAX AND MUNICIPAL GROCERY SERVICE OCCUPATION TAX IN THE VILLAGE OF LEMONT WHEREAS, the Village of Lemont, Cook, DuPage and Will Counties, Illinois (the "Village") is currently a non -home rule municipality pursuant to the Illinois Constitution of 1970 and the Illinois Compiled Statutes; and WHEREAS, Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24) provides that, beginning on January 1, 2026, all Illinois municipalities may impose a tax "upon all persons engaged in the business of selling groceries at retail in the municipality" (the "Municipal Grocery Retailer Tax"); and WHEREAS, the Municipal Grocery Retailers' Occupation Tax may be imposed "at the rate of 1% of the gross receipts from these sales" (65 ILCS 5/8-11-24); and WHEREAS, Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24) requires any municipality imposing a Municipal Grocery Retailers' OccupationTax under Section 8-11-24 to also impose a Service Occupation Tax at the same rate, "upon all persons engaged, in the municipality, in the business of making sales of service, who, as an incident to making those sales of service, transfer groceries" (the "Municipal Grocery Service Occupation Tax") (65 ILCS 5/8- I1-24); and WHEREAS, any Municipal Grocery Retailers' Occupation Tax and any Municipal Grocery Service Occupation Tax shall be administered, collected, and enforced by the Illinois Department of Revenue; and WHEREAS, the Municipal Grocery Retailers' Occupation Tax and the Municipal Grocery Service Occupation Tax shall collectively be referred to herein as the "Municipal Grocery Taxes"; and 2 WHEREAS, the Village Board finds that it is desirable and in the best interests of the Village and its residents to approve this Ordinance levying the Municipal Grocery Taxes as permitted and authorized by Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24) as set forth herein. NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the Village of Lemont, Illinois, as follows: Section 1: The above -stated recitals are incorporated by reference. Section 2: Title 3 of the Village Code is hereby amended to add a new Chapter 3.35. - Municipal Grocery Taxes, as follows: Chapter 3.35 — Municipal Grocery Taxes 3.35.010 - Municipal Grocery Retailers' Occupation Tax Imposed A tax is imposed upon all persons engaged in the business of selling groceries at retail in this municipality at the rate of 1 % of the gross receipts from such sales made in the course of business while this Ordinance is in effect. The imposition of this tax is in accordance with and subject to the provisions of Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24). 3.35.020 - Municipal Grocery Service Occupation Tax A tax is imposed upon all persons engaged in the business of making sales of service, who, as an incident to making those sales of service, transfer groceries as an incident to a sale of service in this municipality at the rate of 1 % of those gross receipts from such sales made in the course of such business while this Ordinance is in effect. The imposition of this tax is in accordance with and subject to the provisions of Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24). 3.35.030 - Tax Collection The taxes imposed by this Chapter, and all civil penalties that may be assessed as an incident thereto, shall be collected and enforced by the Department of Revenue of the State of Illinois. The Department of Revenue shall have frill power to administer and enforce the provisions of this Ordinance in a manner consistent with Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24). 3.35.040 — Effective Date This chapter shall be in full force and effect upon its passage, approval, and publication as provided by law, provided, however, that the tax provided herein shall take effect for all sales on or after January 1, 2026. Copies of the Ordinance from which this chapter was derived shall be certified and sent to the Illinois Department of Revenue prior to October 1, 2025. Section 3: As required under Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-11-24), the Village Clerk is hereby directed to file a certified copy of this Ordinance with the Illinois Department of Revenue on or before October 1, 2025. Section 4: All Ordinances, Resolutions, motions or other actions in conflict herewith are hereby repealed to the extent of such conflict. Section 5: If any part of this Ordinance is found or determined to be invalid, the invalid portion shall be stricken here from and the remainder shall be in full force and effect. Section 6: This Ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. ADOPTED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL AND DUPAGE, ILLINOIS on this 11" day of August 2025. PRESIDENT AND VILLAGE BOARD MEMBERS: AYES: NAYS Samuel J. Forzley Janelle Kittridge Ken McClafferty 1, Kevin Shaughnessy Rick Sniegowski ®� Ron Stag1�AL v Attest: Vt l 1 Charle S Heil, till e Clerk 4 ABSENT: ABSTAIN: 10, Jo Egofske, Village President Illinois Municipalities That Have Adopted Ordinances Implementing the Local Grocery Sales Tax As of 7/31 /2025 at 4:30 p.m. Disclaimer: This list of municipalities that have adopted a local grocery sales tax ordinance is based on information receiveddirectly from the municipality or confirmed by the Illinois Department of Revenue (IDOR).. It is not an official IDOR document and may be incomplete. Some municipalities are listed more than once due to their jurisdiction overlapping multiple counties. The Illinois Municipal League has compiled and posted this information' as a resource and will update the list periodically' as new information becomes available. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2C 21 22 23 24 25 26 27 28 29 3C 31 32 33 34 II Municipality Albers Clinton Aledo Mercer Algonquin Kane Algonquin McHenry Alsip Cook Altamont Effingham Alton Madison Anna Union Annawan Henry Antioch Lake Arcola Douglas Argenta Macon Arthur Douglas Arthur Moultrie Assumption Christian Athens Menard Atkinson Henry Avon Fulton Bannockburn Lake Barrington Cook Barrington Barrington Hills Cook Barrington Hills Kane Barrington Hills Lake Barrington Hills McHenry Barry Pike Batavia DuPage Batavia Kane Beckemeyer Clinton Bedford Park Cook Beecher Will Beecher City Effingham Belleville 1St Clair Berwyn JCook 1 35 36 37 38 39 4C 41 42 43 44 45 4E 47 4E 49 5C 51 52 5� 54 5E 5E 57 5E 5� 6C 61 62 6": 64 6E 6E 67 6E 6� 7C 71 7L 7": 74 7E 7E 77 7E 7� 8C 81 Bethany Moultrie Blue Island Cook 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Winnebago Lovington Moultrie Lyons Cook Machesney Park Winnebago Mackinaw Tazewell Macomb McDonough Macon Macon Mahomet Champaign Mapleton Peoria Marengo McHenry Marion Williamson Markham Cook Martinsville Clark Matteson Cook Matteson Will Mattoon Coles Mazon Grundy McLeansboro Hamilton Mechanicsburg Sangamon Melrose Park Cook Mendota LaSalle Meredosia Morgan Merrionette Park Cook Metamora Woodford Metropolis Massac Midlothian Cook Milan Rock Island Milledgeville Carroll Millstadt St Clair Minooka Grundy Minooka Kendall Minooka Will Mokena Will Moline Rock Island Montgomery Kane Montgomery Kendall Morris Grundy Morrison Whiteside Morrisonville Christian Morton Grove Cook Mount Carroll Carroll Mount Sterling Brown Mount Zion Macon Moweaqua Christian Moweaqua Shelby New Athens St Clair 27C 271 272 273 274 27E 27E 277 27E 27� 28C 281 282 283 284 28E 28C 287 28E 28c 29C 291 292 293 294 29E 29E 297 29E 29� 30C 301 302 30'� 304 30E 30E 307 30E 30� 31C 311 312 31� 314 31E 31E New Baden 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40E 407 40E 40C 41C Spring Grove McHenry Spring Valley Bureau Steeleville Randolph Sterling Whiteside Stickney Cook Stockton JoDaviess Stone Park Cook Streator LaSalle Streator Livingston Sugar Grove Kane Summit Cook Swansea St Clair Sycamore DeKalb Tamaroa Perry Tampico Whiteside Taylorville Christian Third Lake Lake Thomasboro Champaign Tilton Vermilion Tinley Park Cook Tinley Park Will Toulon Stark Tremont Tazewell Trenton Clinton Tuscola Douglas Urbana Champaign Valier Franklin Vernon Hills Lake Vienna Johnson Villa Grove Douglas Volo Lake Warren JoDaviess Warrensburg Macon Warrenville DuPage Washington Tazewell Washington Park St Clair Waterloo Monroe Wenona Marshall Wenonah Montgomery West City Franklin West Dundee Kane West Frankfort Franklin Westchester Cook Westmont DuPage Westville Vermilion Wheaton IDuPage Wheeling ICook N 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 Wheeling Lake Williamsfield Knox Williamsville Sangamon Wilmington Will Wilmington 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