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1. How is the ten cent tax monitored?

A retail store must record on a customer’s receipt the number of disposable bags (plastic, paper, or other material including but not limited to compostable material) provided to a customer and the total amount of tax charged for each type of bag. Please note self-checkout and online orders should also be subject to the tax.

The Village reserves the right to request that a retail store make its records available for compliance audits and can assess penalties for failure to comply with the ordinance.

2. How and when do store owners report and remit the tax they collect?

Stores must pay the Village five cents ($0.05) for each ten cent ($0.10) bag tax collected. Bag taxes are due on the 20^th of each month. Along with the tax, stores must submit a report.

3. Is the single-use bag tax subject to sales tax?

The tax is not subject to sales tax. Retailers should NOT be applying the sales tax rate to the single-use bag tax that is charged.

4. What type of information are stores required to report to the Village?

Stores will be required to report the number of disposable bags distributed to customers, the total amount of tax due, and basic contact information for the vendor.

5. What happens to the portion of the bag tax proceeds kept by the Village?

The Village’s portion of the bag tax will be allocated to a Sustainability Fund. The Sustainability Fund is established to advance the implementation of the Northbrook Climate Action Plan (CAP) to foster environmental sustainability and reduce carbon emissions community-wide. This includes providing reusable bags for distribution to the community.