Lake County Gazette

At a meeting held on August 19, 2025, the Village of Wauconda Board of Trustees approved two ordinances concerning local sales taxes. The first ordinance addresses the grocery tax, while the second establishes a 1% local sales tax.

Currently, the State of Illinois collects a 1% sales tax on qualifying grocery items intended for home preparation and consumption. This statewide grocery tax is set to end on January 1, 2026. However, municipalities are allowed to reintroduce this tax at the local level. According to village officials, this revenue stream generates between $250,000 and $300,000 annually for Wauconda and is used to fund daily services. "This is not a new additional tax; it is currently being charged by the State," the board stated.

In addition to maintaining the grocery tax locally, trustees passed a separate ordinance for a non-home rule sales tax of 1%. This new local sales tax will be applied to general merchandise and food prepared for immediate consumption at places such as restaurants. Neighboring communities like Lake Zurich and Mundelein have already implemented similar measures. The State of Illinois will collect this tax on behalf of the village and then remit it back to Wauconda.

The new sales tax will not apply to auto sales, groceries, or prescription drugs. Officials project that it will generate approximately $1.5 million each year. For several years, village leaders have discussed anticipated funding gaps for infrastructure projects including annual road resurfacing programs. Revenue from this new source is expected to help address these needs. Under state law, funds collected from this local sales tax can be used for infrastructure improvements and property tax relief; its use for general operations is permitted only until 2031.

The board emphasized that there will be no overlap between the new grocery and sales taxes—each applies to different goods and services—and both measures take effect on January 1, 2026.