Checkout Bag Tax (2737)
|Municipal Code Reference:
Tax Return Form Code:
The Checkout Bag Tax is imposed on the retail sale or use of checkout bags in Chicago.
Tax is imposed at $0.07 per checkout bag sold or used in the City.
Exemptions, Deductions and Credits:
A. This tax shall not apply to the extent it would violate the United States Constitution or the Constitution of the State of Illinois.
B. This tax shall not apply to the retail sale or use of checkout bags that are used to carry items purchased pursuant to the Supplemental Nutritional Assistance Program or a similar governmental food assistance program.
C. It shall be presumed that checkout bags sold or used by wholesalers and stores are subject to the tax imposed under this chapter until the contrary is established. The burden of proving that such checkout bags are not taxable hereunder shall be upon the person so claiming.
D. In remitting the tax to a wholesaler, a store shall be allowed a credit of two cents per checkout bag purchased.
E. In remitting the tax to the Department, a wholesaler shall be allowed the same two-cent-per bag credit provided in (D), resulting in a five-cents-per-bag required remittance to the Department.
Rulings and Procedures:
Every wholesale and eligible retail store selling or using checkout bags must register with the Department of Finance before the February 1, 2017 effective date to begin collecting and/or remitting the tax on February 1, 2017. If you have any questions about the Checkout Bag Tax, the Floor Tax return, or how to get registered for the tax, please contact Customer Service at 312.747.4747 or by e-mail at RevenueDatabase@cityofchicago.org.
Businesses registered for Checkout Bag Tax with the Chicago Department of Finance.