The recently passed budget eliminates the Illinois grocery tax.

There may be a change coming soon to the grocery store checkout lines for Illinois consumers.

The state’s recently enacted $53.1 billion budget removed Illinois’s grocery tax, a major change. The Illinois House approved this historic resolution early on Wednesday morning, and Governor J.B. Pritzker still needs to sign it.

When Governor Pritzker made this year’s budget address in Springfield, he demanded that the food tax be eliminated. He called the 1% grocery tax a “regressive tax” and contended that getting rid of it would help households who are still having a hard time keeping up with inflation.

Pritzker stated, “Even if it only puts a few hundred dollars back in families’ pockets, it’s the right thing to do if it reduces inflation for families from 4% to 3%.”

According to state law, the 1% tax only applied to goods that were intended to “be consumed off the premises where they are sold.” As part of a relief package, this tax was temporarily postponed from 2022 to 2023; nevertheless, it was reinstated last summer. For example, a 1% tax contributed $1.45 to a $145.29 grocery expenditure.

Although a lot of customers are happy that the levy is no longer in place, local governments stand to lose a lot of money. For example, Orland Park Mayor Keith Pekau stated that the adjustment will result in a $2.5 million reduction in the suburb’s earnings. The new budget lessens this by enabling localities to levy their own grocery taxes up to 1% without state supervision. Furthermore, without voter permission, towns and counties having home-rule authority—typically those with populations greater than 25,000—may impose a sales tax of up to 1%.

Senators have complimented the budget that was approved by the Senate over the Memorial Day weekend. State Senator Steve Stadelman stated, “This measure is providing relief to skyrocketing grocery prices.” “We can give financial relief to families throughout the state by removing the state-imposed sales tax on groceries, making essential items more affordable.”

Republicans, meanwhile, have criticized the budget. They contend that Democrats are spending excessively and aren’t getting ready enough for upcoming economic downturns. Norine Hammond of Macomb, the Deputy House Republican Leader, voiced concerns about expenditure that has been postponed until the next fiscal year, amounting to at least $1 billion. Jacksonville representative C.D. Davidsmeyer issued a warning about possible financial hazards, saying, “I hope I don’t have to say, ‘I told you so,’ when it happens.”

The budget represents a significant change in Illinois’ approach to grocery taxation and state revenue management as it now needs Governor Pritzker’s signature to become law.