Illinois lawmakers considering statewide bag tax
Illinoisans would pay a new bag tax under a proposed bill in Springfield. The tax would only deepen concerns that the state keeps increasing the cost burden.
A bill in Springfield would saddle consumers with another cost — a bag tax.
State Rep. Laura Faver Dias, D-Grayslake, introduced the measure, which would create a carryout bag tax on any plastic, paper, or reusable bag provided by a “retail mercantile establishment” not including restaurants.
The Carryout Bag Reduction Act, House Bill 5112, proposes that businesses charge 10 cents per carryout bag starting in 2027. The tax would be increased by five cents a year until 2030, when it would cap at 25 cents. However, fees would continue to increase by five cents a year until certain goals regarding the reduction of bags are met. This increase would continue until statewide bag usage drops to 90% below 2027 levels.
The bill also prohibits the use of plastic bags for home delivery services.
If signed into law, the bill would mark the latest tax increase during Gov. J.B. Pritzker’s administration. Illinoisans have seen dozens of tax hikes since 2019. Some examples:
- More than doubling state gas taxes and tying annual increases to inflation thereafter, creating a $3.3 billion surplus in the state’s road fund.
- Halting the repeal of the franchise tax, which had been agreed to in 2019.
- Capping the retailers’ discounts — the portion of sales taxes retailers were allowed to keep as reimbursement for collecting the taxes — effectively raising sales taxes on brick-and-mortar businesses.
Illinois drivers already pay among the highest taxes on gas in the nation, ranking third behind California and Michigan. Pritzker doubled the state’s per-gallon tax in 2019 to 38 cents from 19. That has now climbed to 48.3 cents thanks to automatic increases each July 1. Combined with federal and local taxes, Illinoisans pay about 85 cents a gallon.
Lawmakers must understand that higher taxes strain state finances and discourage economic growth. The goal should be to reduce the financial stress on Illinois households and families.