In 2022 as part of a state budget plan aimed at providing relief to families struggling with rising costs of goods and inflation, Illinois suspended the 1% sales tax rate on grocery items from July 1, 2022, to June 30, 2023.
A one-year 1% grocery tax suspension did little for people when inflation ate so much of family budgets. Gov. Pritzker claimed the pause was only possible because of fiscal responsibility. In reality, Illinois had $1.2 billion in federal aid, which will run out in the new fiscal year that starts July 1. Earlier this year, state Sen. Donald DeWitte, R-St. Charles, introduced legislation repealing the grocery tax, but the bill died in committee.
Beginning July 1, 2023, the one-year suspension will sunset, and Illinois will reinstate the 1% sales tax rate on grocery items. If a retailer has the statement “From July 1, 2022, through June 30, 2023, the State of Illinois sales tax on groceries is 0%” on receipts, invoices, or posted on signage, the statement should be removed.
Retailers filing Form ST-1 with Schedule GT on a monthly or quarterly basis for the grocery suspension will discontinue filing Schedule GT after the June 30, 2023 reporting period. Annual filers that have qualifying sales during the suspension period will need to file Schedule GT for the 2023 reporting period.
Stephen Lucash
Senior Manager