IL SB1240

Imposes a $0.07 tax on each single-use plastic, paper, or compostable checkout bag provided at retail establishments in Illinois, with exceptions for municipalities that had bag fees in place before February 1, 2018.

Tax revenue distributed as: retailers retain $0.02 per bag, wholesalers retain $0.02 per bag, and $0.03 per bag deposited into the Checkout Bag Tax Fund for counties and municipal joint action agencies.

Counties and joint action agencies must use at least 50% of revenue for household hazardous waste collection programs and remaining funds for recycling education, container collection infrastructure, or solid waste management plans.

Preempts county and municipal regulation of auxiliary containers and checkout bags statewide, except municipalities with populations over 2.5 million that had bag fees before February 1, 2018 may continue those fees unchanged.

Creates the Checkout Bag Tax Fund as a protected state fund, exempts Supplemental Nutrition Assistance Program purchases, and requires annual reporting by counties and the Illinois Environmental Protection Agency on fund usage.