Chloe Zhang
In 2019, Illinois proposed a statewide plastic bag tax, which would make it the first US state to implement such a tax. The proposal, which was met with some opposition, suggested a 5-cent tax on plastic bags, which would cost the average Illinois family $75 a year. The tax was intended to reduce plastic waste and generate new revenue for the state, estimated at $19 million to $23 million annually. Chicago, which already had a bag tax in place, would be exempt from the statewide tax. As of May 2023, Chicago shoppers will pay a checkout tax of 7 cents per bag unless they bring their own bags.
| Characteristics | Values |
|---|---|
| Tax per bag | 5 cents or 7 cents |
| Annual cost for a family | $75 |
| Annual revenue | $19 million to $23 million |
| Aims | Reduce plastic use, generate revenue |
| Chicago | Exempt from the tax |
| Oak Park | Exempt from the tax |
| Other cities with similar taxes | Washington D.C., California |
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What You'll Learn
Illinois Senate committee approves the tax
On March 6, 2019, the Illinois Senate Revenue Committee unanimously passed Senate Bill 1240, which would impose a statewide plastic bag tax. The bill was introduced by state Sen. Terry Link, D-Gurnee, and would charge Illinois shoppers an extra 7 cents per plastic bag. However, the bill specifically exempts Illinois municipalities with a population greater than 2.5 million, such as Chicago, which has had a bag tax in place since 2017, and Oak Park, which implemented a bag tax before February 1, 2018.
Gov. J.B. Pritzker has also included a bag tax in his proposed fiscal year 2020 budget, suggesting a statewide tax of 5 cents per bag. Pritzker's administration estimates that the tax could generate between $19 million and $23 million in new revenue annually, depending on whether Chicago is exempted. If Chicago is included in the tax, the state could see up to $25 million in additional revenue. However, some have criticized the proposed tax, arguing that it would be a financial burden on families and businesses.
The statewide plastic bag tax has been a topic of discussion in Illinois for several years. In 2019, the state considered implementing a 5-cent tax on plastic bags, which was estimated to cost the average Illinois family $75 per year. However, the proposal faced opposition from retail groups and some state lawmakers, who argued that it would be detrimental to both businesses and consumers.
Despite the opposition, the idea of a statewide plastic bag tax gained support from environmental advocates who argued that it would reduce plastic waste and littering. Champaign City Council member Tom Bruno supported the tax, recalling the massive amounts of plastic bag litter they had to deal with. Former council member Mike LaDue shared a similar sentiment, stating that plastic bags are "a menace to the environment."
As of March 2019, the Senate Bill 1240 awaits a full Senate vote. If passed, Illinois would become the first state in the nation to implement a statewide plastic bag tax.
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Chicago is exempt
In 2019, the Illinois Senate committee approved a statewide plastic bag tax, exempting Chicago. The Senate Revenue Committee passed Sen. Terry Link's bag tax proposal, Senate Bill 1240, unanimously on March 6. The bill specifically exempts municipalities with a population greater than 2.5 million, such as Chicago, which has a population of 2.7 million. It also exempts municipalities with a bag tax in place as of February 1, 2018, including Chicago, which had imposed a bag tax since 2017.
Under the proposal, Illinois would be the only U.S. state to implement a statewide plastic bag tax. The tax aims to reduce plastic bag usage and generate revenue for the state. Chicago, which already has its own bag tax, would be exempt from the state tax to avoid double taxation on its residents.
The Checkout Bag Tax in Chicago has been in effect since February 2017. It applies to both paper and plastic grocery bags, with a charge of 7 cents per bag. Of this amount, 2 cents go to the retailer, and 5 cents go to the city. The Chicago Department of Finance is responsible for revenue collection and enforcement of this tax. Retailers are required to register with the Department of Finance to collect and remit the tax.
The statewide plastic bag tax proposal in Illinois, ranging from 5 to 10 cents per bag, faced opposition from some groups, including the Illinois Retail Merchants Association. They argued that it would increase costs for both consumers and retailers. However, supporters of the tax highlighted the negative environmental impact of plastic bags and the need to reduce their use.
While the Illinois Senate committee approved the statewide plastic bag tax with Chicago as an exemption, it is essential to note that the bill still requires a full Senate vote. As of March 2019, the bill was awaiting this final step to determine its implementation across the state, excluding Chicago.
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The tax would be 5 or 7 cents
In 2019, Illinois was considering a statewide plastic bag tax. The Senate Revenue Committee passed Link's bag tax proposal, Senate Bill 1240, unanimously on March 6. However, the bill only proposed a tax of 7 cents per plastic bag, not 5 cents. Gov. J.B. Pritzker included a bag tax in his proposed fiscal year 2020 budget, suggesting a statewide tax of 5 cents per bag.
If Governor Pritzker's budget was passed, Illinois would be the first in the country to issue a state-wide bag tax. The proposed budget would reduce the use of plastic bags in checkout lanes and generate between $19 million and $23 million in new revenue. Chicago has had such a tax since 2017 and charges seven cents per bag. The bill in its current form levies a 7-cent tax, with 2 cents being kept by the retailer to cover the costs of implementing the tax. The other 5 cents would be collected by the state, with 2 cents going directly to the general revenue fund and another 3 cents deposited in the Checkout Bag Tax fund, which would fund solid waste management programs in the counties in which the tax was collected.
The Illinois Retail Merchants Association was quick to object to the idea of a 5-cent tax. Not only would there be an additional tax on consumers, but retailers would also face extra bookkeeping and bag-carrying costs. It is unclear whether Chicago and Oak Park—which already have their own bag taxes—would be exempt from a state bag tax. However, the Illinois Retail Merchants Association supported the 7-cent tax, as it gave a portion back to retailers to administer the cost.
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The tax would generate $19-23 million
Illinois Governor J.B. Pritzker included a 5-cent-per-bag tax in his proposed fiscal year 2020 budget, which is estimated to generate $19 million to $23 million in new revenue. The Senate Revenue Committee passed a similar proposal, Senate Bill 1240, on March 6, 2019, which would charge Illinois shoppers an extra 7 cents per plastic bag. This proposal is estimated to bring in $19 million to $23 million, depending on whether Chicago is exempt. Chicago has had a bag tax since 2017 and charges seven cents per bag.
If Governor Pritzker's budget is passed, Illinois would be the first in the country to issue a state-wide bag tax. The proposed budget is expected to reduce the use of plastic bags in checkout lanes. However, some Illinois residents are not in favour of the possible tax, citing concerns about affordability and convenience.
The state-level bag tax has faced opposition from various groups, including the Illinois Retail Merchants Association, who argue that it would impose additional costs on both consumers and retailers. State lawmakers and a retail group have also objected to the idea. Critics suggest that the tax is motivated by a desire for revenue rather than environmental concerns.
Despite the objections, the state-level bag tax has gained support from some individuals who recognize the negative impact of plastic bags on the environment. They argue that plastic bags contribute to litter and pollution in rural areas, rivers, and streams.
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Objections from retailers
In 2019, Illinois was considering implementing a statewide plastic bag tax, which would be the first in the country. The tax would be either five or seven cents per bag, and Chicago would be exempt from the tax, as it already had a bag tax in place.
The Illinois Retail Merchants Association objected to the idea of a statewide plastic bag tax, citing the additional costs that retailers would face. Rob Karr, the group's president, argued that retailers would have to deal with extra bookkeeping and bag-carrying costs. He also questioned whether the tax was truly intended to reduce plastic bag use, suggesting that it seemed "set up for revenue" instead. State Rep. Brad Halbrook agreed, stating that a bag tax would be bad for both businesses and consumers.
Some retailers in Chicago, where a seven-cent tax on plastic bags was implemented in 2017, expressed concerns about the impact of the tax on their operations. Shenika Hill, a senior manager at Mariano's, noted that they had to train their employees on how to handle the restriction and offer a variety of reusable bags to customers. Other retailers, such as Whole Foods, Target, and Mariano's, offered incentives for shoppers to bring their own bags, such as providing credits or coupons for reusable bags.
While some retailers chose to pass the tax along to customers, it is important to note that the decision to do so was left to the retailers themselves. The tax applied to disposable paper bags as well as plastic bags, and some retailers added paper bags as an alternative option for their customers. However, aldermen concluded that this switch did not make the city more environmentally friendly, highlighting the complexity of finding sustainable solutions that meet consumer needs.
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Frequently asked questions
No, but in 2019, Governor J.B. Pritzker included a statewide plastic bag tax in his proposed fiscal year 2020 budget. The Senate Revenue Committee passed Link’s bag tax proposal, Senate Bill 1240, unanimously on March 6, 2019. The bill then awaited a full Senate vote. If passed, Illinois would be the first in the country to issue a state-wide bag tax.
The proposed plastic bag tax in Illinois is a five-cent-per-bag tax, which would generate around $20 million in new revenue.
The proposed plastic bag tax in Illinois is an effort to reduce plastic waste and generate new revenue for the state.
