According to past meeting minutes and the upcoming City Council meeting agendas, St. Charles and Geneva are weighing a new local tax on groceries as a way to make up for upcoming changes at the state level.

With Illinois set to phase out its 1% grocery sales tax at the start of 2026, the cities are looking at options to avoid losing a key revenue stream that helps fund day-to-day services.

Here’s what to know:

• Purpose: The proposed ordinance would allow the cities to reestablish the 1% grocery tax at the local level, keeping things status quo for shoppers while continuing to bring in needed revenue for city operations.

• Outside input: St. Charles officials said much of the grocery tax revenue comes from people who live outside St. Charles, particularly those shopping at big retailers like Costco and Whole Foods. Geneva officials said 60% of grocery visits are from people who live outside of the city.

• Timeline: Several nearby communities are pursuing similar plans, and the cities must act by October 1.

Without the local tax, officials warned there could be pressure to raise other taxes or reduce services.

Officials in both cities are planning to take up the issue in City Council meetings on July 7. Here’s the Geneva agenda and the St. Charles agenda.

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