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 City Council Indicates Support for 1% Sales Tax, and Elimination of Grocery Tax and Amusement Tax 

Published on September 2, 2025 6:17 pm
Last Updated on September 2, 2025 6:18 pm

The City of Effingham
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Effingham City Council members were unanimous during discussion of a city sales tax, a grocery tax, and an amusement tax.

Support was heard for the sales tax, against the grocery tax, and for the elimination of the amusement tax.

Votes on the three items are expected at the Council’s meeting on September 16.

City Administrator Steve Miller said based on last year’s data, the 1% sales tax would have generated more than $6.5 million. The funds can be used for public infrastructure and property tax relief.

The state grocery tax ends at the end of 2025. If the City doesn’t implement their own grocery tax, it would lose up to $700,000.

If the Council ends the amusement tax, it would lose $165,000.

City Commissioner Jake Niebrugge noted that the sales tax revenue would put Effingham on a much more competitive footing with other municipalities by allowing the reduction of property taxes.

Mayor Mike Schutzbach said the Council hopes to hear from Effingham residents prior to the vote on the issues on the 16th.