Rochelle Proposes Replacing Expiring Grocery Tax with Local Sales Tax

ROCHELLE – The City of Rochelle has proposed to replace the state’s 1% grocery tax, set to expire in January 2026, with a local 0.25% non-home rule sales tax. The change would help maintain city revenue levels without major service cuts, as the grocery tax has funded public safety staffing, capital improvements, and community programs since 2021. Estimated to generate $500,000 annually, the new tax would support public works and reduce reliance on the General Fund. The state grocery tax, which applied to most food meant for off-site consumption, was suspended during 2022–2023 before resuming and is scheduled to end in March 2026. The council could vote on the measure at the next city council meeting.