Latest news with #grocerytax
Yahoo
7 days ago
- Business
- Yahoo
Pueblo mayor pitches sales tax increase, changes to half-cent criteria for 2025 ballot
Pueblo Mayor Heather Graham advocated for a grocery tax several months ago, but she acknowledged during a July 21 Pueblo City Council work session that the proposal to generate more revenue has not been popular with city voters. Instead of a grocery tax, Graham is now advocating for a ballot initiative that would increase the city sales and use tax rate from 3.7% to 4.7%. The city estimates a 1% sales tax increase would generate over $26 million annually — more than twice the estimated revenue of a grocery tax. Funds generated by a sales tax increase would alleviate a multi-million dollar budget shortfall while funding city programs, infrastructure maintenance, new amenities, pools, public safety, roads, and "quality of life services," according to a July 21 presentation by Graham and City Attorney Carla Sikes. The sales and use tax rate increase was proposed with another ballot initiative to change the city's half-cent sales tax criteria ordinance, which Graham said could help bring new amenities like a Buc-ees, Costco, or aquatic center to Pueblo. The updated criteria ordinance would add economic catalyst projects, projects to prevent economic leakage, and place-making projects to the list of initiatives eligible for funding through the city's half-cent sales tax. According to Graham and Sikes' presentation, economic catalyst projects are projects that substantially increase city sales tax revenue from "outside dollars"; projects that prevent economic leakage are those that attract businesses that city residents currently leave town to patronize; and place-making projects are those that "improve quality of life" while also bringing in revenue from outside the community. Pueblo City Council previously had the opportunity to enact changes to the criteria ordinance without approval of a ballot initiative on June 23, but rejected it in a 4-3 vote. Dennis Flores, Roger Gomez, Joe Latino and Regina Maestri were the four Pueblo City Council members who voted against changing the half-cent sales tax criteria. "We heard from PEDCO (the Pueblo Economic Development Corporation), our economic development partners, that the criteria ordinance was being changed a little bit too much," Graham told council members. "You wanted to see it go to the vote of the people, so here it is." If approved by city council, the 1% sales tax increase and changes to the half-cent sales tax criteria are scheduled to be on the November 4, 2025, ballot. Council's next regular meeting is on July 28. The Slab reopens: 'The Slab' is back. Here's what to know open the upcoming re-opening ceremony in Pueblo Pueblo Chieftain reporter James Bartolo can be reached at JBartolo@ Support local news, subscribe to the Pueblo Chieftain at This article originally appeared on The Pueblo Chieftain: Why a sales tax increase could be on the 2025 ballot in Pueblo Solve the daily Crossword
Fox News
05-06-2025
- Business
- Fox News
Progressive Chicago mayor advocates for new 1% grocery tax to help billion-dollar deficit
Chicago Mayor Brandon Johnson called for a 1% tax on groceries on Tuesday out of concerns about the city's massive deficit. Johnson's budget team met with the Committee on Finance: Subcommittee on Revenue to discuss the impending end to Illinois' grocery tax, which will expire on January 1, 2026. The city currently has until October 1 to pass a new tax to replace the expired one to maintain revenue continuity. During the meeting, Budget Director Annette Guzman argued in favor of the new tax, warning that the city could see an increase in its deficit and services cut without it. "Allowing that tax to lapse in 2026 would cost the corporate fund an estimated $80 million next year alone, further exacerbating our $1 billion-plus gap," Guzman said. "Nearly 200 other municipalities in Illinois — from Berwyn to Wheaton and beyond — have already voted to extend this grocery tax... If we fail to do the same, we will leave critical services on the chopping block." She pointed to the city's police department as a potential victim of budget cuts if taxes like this were not passed. "Roughly one-third of our corporate fund supports the police department and its related pension obligations. Without new revenue, staffing, training and community-based programs could face cuts," Guzman said. In a press briefing, Johnson advocated for the 1% increase by pointing out that the new tax would only replace the one currently in effect without adding additional taxes. "The City of Chicago will not enact its own grocery tax. The grocery tax already exists. There is a process in which the collection of the grocery tax is now being placed in the responsibility of municipalities," Johnson said on Tuesday. "We're not creating a grocery tax. We're just creating a process by which we can collect it." The city council has not yet voted on a replacement tax. Alderman Andre Vasquez pointed out during the meeting that a local tax was not included in Johnson's 2025 budget, which now puts the council in an awkward position. "Had it been included in the budget, it might have gotten done in a way that's going to feel a lot easier than this year," Vasquez said. "Hearing that 200 municipalities that already did it — it's a bit frustrating. It was a missed opportunity." Fox News Digital reached out to members of the committee for additional comment but did not immediately receive a response. Though the city council can pass a new tax increase after the October deadline, the City Council Office of Financial Analysis reported in May that collections on any new ordinances would not go into effect until mid-2026.
