Peoria Heights village trustees have scheduled another vote to enact a 1% local grocery tax after Mayor Matt Wigginton vetoed the initial approval late last week.
After Wigginton formally presented a written explanation for his action during Tuesday’s village board meeting, trustees took steps to place the item back on the agenda for a vote on Oct. 7.
“What I don't want to see happen is us to forego this tax — which, again, is not only paid [by] our residents but outside consumers in large — and then be backed into a corner where we have to consider raising our levy, which only impacts the citizens of this community,” said trustee Sarah Devore.
At its first meeting this month, the board voted 5-1 to implement the 1% grocery tax to replace the state tax that expires on Jan. 1. Revenue collected by the state had been returned to local governments.
Estimates put Peoria Heights potential revenue loss at $125,000 per year without a grocery tax.
“A big share of these dollars come down to out-of-town shoppers and drive-thru traffic, not from residents,” said Devore, noting Peoria Heights will lose a grocery store when Save A Lot departs after its lease expires in March. “Most of our own families already buy groceries outside of the village, and once Save A Lot leaves, they will keep paying that 1% somewhere else.
“So why would we refuse to collect the same modest tax from non-residents who shop here? Saying ‘no’ means other municipalities cash in on our residents while we refuse the very revenue visitors generate on our streets. That's not principle; it's a self-inflicted handicap.”
Trustee Teresa Symmonds said she had been “on the fence” about whether to approve the tax ahead of the initial vote, adding she will stand by her decision in favor of it.
Symmonds moved to have the 1% municipal food tax placed back on the agenda for the next meeting, with Jennifer Reichert seconding the motion. A two-thirds approval at that meeting would override Wigginton’s veto.
“It's about not having to, in a couple of years, raise property tax that's going to cost residents thousands,” said Reichert, who said she stands by her vote to implement the grocery tax.
“If we have to raise the real estate tax, it affects our residents that are permanently stationed here and have lived here and buy homes in our community. It doesn't affect our renters, unless the people that own those homes decide to raise their rent.”
With the override vote not happening until after the state’s Oct. 1 deadline for municipalities to file a local grocery tax ordinance, Peoria Heights likely will not be able to collect a local grocery tax until July 1, 2026.
“This is a tax that existed and was taken away by the state, and now is being proposed that small communities adopt it again,” said trustee Elizabeth Khazzam. “I feel like everybody knows my feeling on the subject. It is not an easy decision to make these calls when you're up here.”
A number of Tri-County communities have approved adoption of a local grocery tax to fill the revenue gap after the state tax ends, including Peoria, Washington, Pekin, Morton and East Peoria.
Trustee Brandon Wisenburg, who cast the only vote against the local grocery tax, said enacting the tax is more a matter of convenience than necessity.
“It doesn't matter if other communities choose to impose this regressive tax. That doesn't make it any less regressive,” said Wisenburg, stressing that the village still would operate with a surplus without the grocery tax. “An unfair tax doesn't become fair simply because other governments adopt it. It is still an unfair tax.”
Wigginton suggested the board has an option to leave the grocery tax decision to Peoria Heights residents.
“One thing that we all may want to consider, something absent from all of this conversation, is the opinions of the actual voters,” he said. “We can put a question on the ballot and hear directly from the people as to whether they would want this tax or not. That’s something to consider before moving forward.”
