Chicago retailers’ payment of Checkout Bag Tax is deferred to April 30 due to COVID-19. | Wikimedia Commons
Chicago retailers’ payment of Checkout Bag Tax is deferred to April 30 due to COVID-19. | Wikimedia Commons
The city of Chicago has deferred a tax payment for retailers on the sale or use of checkout bags for February and March payments to April 30 and no interest or late penalties will be assessed if paid on or before that date.
The “Chicago Checkout Bag Tax” has been deferred as a result of COVID-19, the city said in a statement on its website. No added interest will accrue from March 17, 2020, through Thursday, April 30, 2020, “on late payments for the periods July 2019 through January 2020,” the city said.
The Chicago Checkout Bag Tax is on the retail sale or use of checkout bags, either paper or plastic carryout bag, in Chicago, and the tax rate is 7 cents each per checkout bag sold or used in the city. Two cents of the tax goes to the retailer and five cents goes to the city.
Customers, however, who buy paper or plastic bags still must pay the seven-cent bag tax, according to WMAQ-TV 5 Chicago.
Retailers are required to continue to collect the tax that is usually due the 15th day of the following month, WMAQ-TV 5 Chicago reported.
Legislature approval is needed to permanently eliminate the Checkout Bag Tax, according to WMAQ-TV 5.
Alerts Sign-up