The minor controversy over some municipalities in Illinois adopting a 1% grocery tax ordinance upon the stopping of the statewide charge is still going as the "deadline" draws near. The State tax is ending. Some cities are planning to implement their own to raise funds for the municipality while technically not increasing current prices. They reason that local consumers have faced the same tax for years, but now they get that revenue.
Peoria Heights is one such community. Per the below linked article, the Mayor reasons that by vetoing the local proposal he is saving his voters 1%. He also points out that he thinks this strategy might attract at least one more grocery store to the area. Really?
Is continuing a $2 savings on a $200 purchase really worth constructing an entire grocery store for?
My takeaway of this story is the reminder of factors like sales taxes and local financial incentives should be a factor in determining where to place a commercial or residential real estate opportunity. Sales tax differences from state to state and, in some instances, from city to city can definitely be a factor. Consumers will often travel to another state to save hundreds of dollars on a major purchase, or even thousands in some cases (such as a car).
While it is necessary to run the numbers on a potential real estate purchase, sale, or investment, considering other factors which will likely impact customers and/or tenants can be the difference maker in the long-term impact of the transaction.
It is why researching "everything" is the key to success.
https://www.illinoispolicy.org/peoria-heights-mayor-vetoes-grocery-tax-as-chicago-considers-it/
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