Shoppers are advised to examine their receipts closely after an incident where a grocery store chain charged a customer too much for city tax.
Darlene Norman of Chicago, Illinois, discovered the mistake on her receipt during a shopping trip to Mariano's earlier this year.
Overcharge on Bag Tax at Local Mariano's
Norman visited Mariano's on Benton Place in the New East Side one day in late February to buy a few items. After she had checked out and left the store, she noticed something unusual on her receipt.
According to CBS News, Norman usually brings her bags but has not done so this time. Upon reviewing her receipt, she was charged an extra ten cents.
This fee was mistakenly listed as a "paper bag fee," but it referred to the Chicago "checkout bag tax," which should only be seven cents per bag,
The U.S. Sun revealed that following reports of overcharging at its Chicago locations, Mariano's, owned by Kroger, acknowledged the mistake and expressed gratitude to the news outlet for bringing the issue to light.
The grocery chain promised swift action to correct the error. The news outlet later verified this commitment and made a follow-up visit to confirm the changes had been implemented.
Shoppers have strongly disapproved of the Chicago bag tax, with some suggesting that the tax is more focused on generating revenue than promoting environmental benefits.
On X, formerly known as Twitter, Illinois Governor JB Pritzker spoke about his intention to eliminate the grocery tax to help residents save money. In response, one user proposed broader tax relief, suggesting the elimination of sales tax, income tax, and what they called the "absurd" bag tax at grocery stores.
Another shopper, who often uses their bags, criticized the bag tax as objectionable despite not needing to pay it frequently. Additionally, some have pointed out that the tax serves as a revenue source for municipalities, particularly criticizing Chicago's financial management as ineffective.
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Chicago's Bag Tax: Revenue Up, Environmental Impact Questioned
In February 2017, then-Mayor Rahm Emanuel introduced the Chicago bag tax to reduce the use of single-use bags and promote environmental sustainability. In a press release, Emanuel commended the public for opting out of using paper and plastic bags.
However, the subsequent financial data paint a contrasting picture.
The tax was structured so retailers retained two cents from each seven-cent tax, with the remaining five cents directed to Chicago's Department of Finance. What began as a revenue of $5 million in 2017 escalated to $17.5 million by 2023. Surprisingly, by mid-2024, the city had already collected over $13 million, totaling more than $78 million over seven years.
This increase in tax revenue coincides with a dramatic rise in the use of single-use bags, from 101 million in 2017 to over 350 million in 2023, contrary to the tax's environmental goals. Jordan Parker, Executive Director of the Triveni Institute and an initial supporter of the bag tax, now questions its ecological impact.
"The spike in bag usage is alarming," said Parker, highlighting concerns over the tax's real objectives. This shift in perspective raises doubts about whether the tax serves environmental purposes or merely boosts city revenues.
The issue gained additional attention when a media outlet corrected an overcharge related to the bag tax at Mariano's, underlining the complexities and challenges of effectively implementing such fiscal policies.
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