Evanston Council debates grocery tax to address $2.5M revenue shortfall

Evanston's Finance and Budget Committee is facing critical decisions regarding local revenue sources following the state’s elimination of the grocery tax. During the meeting on May 13, 2025, committee members discussed the potential implementation of a new grocery tax to offset an anticipated $2.5 million revenue loss. With over 60 communities already adopting similar measures, Evanston is considering its options, including a property tax increase or adjustments to the home rule sales tax.

The committee emphasized the importance of gathering comprehensive data on local grocery purchasing habits before making a final decision. Councilman Sufrenen highlighted the need for more information about where residents shop, suggesting that a clearer understanding could guide the city’s approach. The deadline for any new grocery tax to take effect is October 1, 2025, which adds urgency to the discussions.

Additionally, the committee reviewed significant developments in the Fulton Market area, where a major developer is pursuing property tax incentives and private activity bonds to fund new projects. This could impact the city’s financial landscape, as the committee noted the importance of educating developers on affordable housing requirements to maximize revenue.

As the committee prepares for further discussions next month, the implications of these financial decisions will be closely watched by Evanston residents, who may soon feel the effects of any changes in local taxation or development policies.