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STATE
ADVISES STORES TO TEMPORARILY BAN REUSABLE BAGS, BUT CHICAGO’S
SINGLE-USE BAG TAX REMAINS
Illinois Policy Institute/
Ben Szalinski
Illinois’
grocery stores have told shoppers to leave their reusable bags at home
to stop COVID-19’s spread. Chicago’s 7-cent bag tax will continue unless
the law is changed. |
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 As coronavirus cases continue to climb throughout Illinois,
Gov. J.B. Pritzker announced new guidelines on March 28 for grocery stores and
shoppers. Among the recommendations was that shoppers no longer use reusable
bags to protect both cashiers and shoppers from spreading the virus.
Although Chicago shoppers have no choice but to use plastic or paper bags
through at least April 30, they will still be paying the city’s 7-cent tax on
each bag they take. The mayor’s office said legislative action is required to
repeal the tax.
The stores have been granted an extension on when they must pay the tax to the
city. The normal due dates of March 15 and April 15 have been moved back to
April 30. Stores keep 2 cents from the tax, but pay the other 5 cents to the
city. Those nickels generate over $5 million in bag tax revenue each year.
Chicago’s bag tax took effect on Feb. 1, 2017, and has been hurting low-income
shoppers and adding to the city’s tax burden on residents. Shoppers already
suffer through the nation’s highest combined state and local sales tax at
10.25%. With more residents unable to receive a paycheck because of social
distancing guidelines, the continued collection of single-use bag taxes hits
shoppers especially hard.
While the city will continue to collect this fee, Chicago Mayor Lori Lightfoot
is suspending collection of traffic fees until April 30 to ease the economic
burden on residents. Drivers will not immediately have to pay for late parking
tickets, towing fees or red-light camera tickets. The city will also suspend its
“booting” system.
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Statewide, Pritzker announced the deadline for
filing state income taxes has been pushed back to July 15 to stay in
line with the new date for federal income taxes. The delay on tax
and fee collections is designed to soften the economic impact of the
pandemic.
In addition to the new guidelines about bags in grocery stores, the
state is urging stores to take other precautionary measures. These
include reminding customers through signs and markings on the floor
to keep a distance of six feet apart from other people, placing
plastic shields in front of cashiers, encouraging curbside pickup
and cashless purchases.
Illinois has seen 5,994 cases of COVID-19 as of March 31, which
includes 99 deaths. Outbreaks at Stateville Correctional Center,
senior apartment complexes in Taylorville and Carol Stream and even
within the Chicago Police Department add to the virus’ severe toll
on Illinois. Pritzker extended the state-at-home order through April
30.
While bag taxes may curb litter, at least one study found them to
have the smallest environmental impact of the shopping bag
alternatives. They also pose an ongoing tax on the poor. Chicago
should drop its bag tax, or at least figure out a mechanism allowing
it to stop collecting the tax during the pandemic.
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