From Wednesday, 1st February, 2017, Chicago's new bag tax comes into effect, shoppers that forget to bring a bag to the grocery store will have to pay the price as New Bag Tax. A tax of 7 cents per bag will be added at the checkout counter of all stores across the city.
The bill was passed to replace Chicago's ban on lightweight plastic bags, that was repealed Jan. 1 after 16 months, the fee applies to all bags, both paper and plastic.
When Mayor Emanuel agreed to lift the plastic bag ban, the 7 cents-a-bag rate was a compromise decided. Five cents of each bag fee will go to the city, and two cents of the fee will go to store merchants.
Roughly $13 million a year, is expected to generate from the tax, with the city receiving about $9.2 million and the rest retained by the businesses.
State and Federal Regulators, Taken Control Of Seaway Bank
Some bags are exempt from the tax, including:
bags used to package loose bulk items, such as fruit, vegetables, nuts, grains, candy, cookies or small hardware items
bags containing frozen foods, meat or fish, prepackaged or not
bags to wrap flowers, potted plants or other damp items
bags that separate food or merchandise that could damage or contaminate other items when placed together in a bag
bags that contain unwrapped prepared foods or bakery goods
bags provided by a pharmacist to hold prescription drugs
packages of garbage bags, pet waste bags or yard waste bags
bags provided by a restaurant for carry-out or dine-in food
newspaper bags
dry cleaning or garment bags
plastic bags with a retail price of at least fifty cents ($0.50) each
The bags used to carry items purchased through the Supplemental Nutritional Assistance Program (SNAP) or a similar governmental food assistance program, the tax will also not apply
If people still don't have a reusable bag to avoid paying the tax,then during the evening commute on Wednesday, the city officials are planning to distribute free, reusable "Chi Bags" at seven CTA locations.
Some retailers are in plans, to give away reusable bags as well. On Wednesday, first 200 guests at each of Targeted 16 Chicago locations will receive a free bag, as well as the first 1,000 customers at each of Whole Foods 12 locations across the city.
By Mrudula
