Chicago Bag Fee Is Double Tax, Critic Says

CHICAGO (CBS) -- Shoppers wondered if they were being ripped off Thursday over Chicago's bag tax.

CBS 2's Dorothy Tucker reports.

Paying for bags in Chicago is now the law, but some tax advocates think consumers may be overpaying.

Chris Lentino from the Illinois Policy Institute described the "bag fee" as a double tax after examining a receipt from Walgreens.

"With this particular retailer, the bag tax is being listed above the subtotal line, and accordingly then it is subject to sales tax," he said.

Consumers also saw the same thing happening on a Trader Joe's receipt.

According to Tina Consola, who works for Chicago's finance department, Walgreens and Trader Joe's are in compliance with the law. Spokesmen from both stores said their computer systems are set up not to tax bags, even though the "bag fee" is above the subtotal.

Lentino said this strategy still confuses consumers, but Consola offered a solution.

"We have encouraged them to reprogram their point of sales system so that it appears below the subtotal or possibly mark it with some sort of indicator that indicates that it's not taxable," she said.

Retailers can expect a tax bulletin next week from the Department of Finance. It should include language spelling out where the bag fee should be placed on the receipt.