O-54-25 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 Lemont418 Main, Street I Lemont, IL 60/1,39
TO: Village Board Meeting
FROM: Darshana Prakash, Finance
THROUGH: George Schafer, Village Administrator
SUBJECT: An Amendment to 0-41-25 - 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: November 10, 2025
SUMMARY/BACKGROUND
On August 11, 2025 the Village Board approved Ordinance 0-41-25 which amended
Municipal Code Title 3 Chapter 3.35 to include a 1 % local grocery tax. The local grocery tax
was approved to replace the state grocery tax which is in place currently and will be rescinded
in 2026. The Ordinance was submitted to the Illinois Department of Revenue (IDOR) and has
been under review for a few months.
On November 6th, IDOR informed the Village that the wording in Section 3.35.020 of the
Ordinance needs revision and can be resubmitted on or before January 1, 2026.
The requested changes are red lined in the attached Ordinance.
Consistency with Village Policy
STAFF RECOMMENDATION
Motion to approve amended Ordinance
BOARD ACTION REQUESTED
Motion to approve amended Ordinance
ATTACHMENTS
Amendment to Ordinance Amending Title 3 Grocery Retailers' Occupation Tax - RED
LINED.pdf
VILLAGE OF LEMONT
ORDINANCE NO. 0
AN AMENDMENT TO 0-41-25 — 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 10' clay of November 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 10" day of November 2025
ORDINANCE NO. 1i
AN AMENDMENT TO 0-41-25 —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 County, 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 8-1 1-24 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 5/8-1 1-24); and
WHEREAS, Section 8-11-24 of the Illinois Municipal Code (65 ILCS 5/8-I1-24) requires
any municipality imposing a Municipal Grocery Retailers' Occupation Tax under Section 8-1 1-24
to also impose a Service Occupation Tax at the same rate, "upon all persons engaged, in the
municipality, in the business ormaking 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-
11-24); 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 Taves";
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 I % 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 l% oQhu sellinr price of all =roctries transferred Deleted ti,r I n Prom siieh galas made ii
by such servicemen as an incident to a sale of service 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 full 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 8-1 1-24 of the Illinois Municipal Code (65 ILCS
5/8-1 I-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: Ifanypart ofthis 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
LEIVIONT, COUNTIES OF COOK, WILL AND DUPAGE, ILLINOIS on this 1011' day of
November 2025.
PRESIDENT AND VILLAGE BOARD MEMBERS:
AYES: NAYS
Samuel J. Forzley
I/
Janelle Kittridge
Ken McClafferty
Kevin Shaughnessy
Rick Snicgowski
Ron Stapleton
`✓
Attest., ,
Charlene M. Smgilen, 1 ge ter]
4
ABSENT: ABSTAIN:
John Egofske, Village Pres'
ff=