Sustainability portfolio lead for the Rotorua Lakes Council, councillor Tania Tapsell, said she and the council thought the levy was a "really good" idea.
"It's proven to work overseas and lead to a drop in plastic bag usage ... unfortunately the council can't ban or introduce a levy on plastic bags so that's why we are lobbying central government and hope they pass it, especially on such a big issue for [Rotorua] and New Zealand."
Dexter Chan, manager of Rotorua retail store Coco Fashion, supported a mandatory levy.
"It'll save the environment for future generations. It might not make a difference in 10 or 20 years but in 200 years it will be a big help."
At new Rotorua vegetarian takeaway Sustain, owner Shirley Braun said she only used degradable plastic bags and biodegradable cartons, and wouldn't have single-use plastic bags in her store for environmental reasons.
Pukehangi resident Mark Jackson said he wondered where the money raised from the levy would go.
"There'll be a cost-saving element involved but I don't have a problem with it and understand where they're coming from."
The Say No to Plastic Rotorua initiative, run by Okere Falls Store owner Sarah Uhl and co-manager Rachel Atkinson, has a "vision" to make Rotorua, through businesses and individuals, plastic bag free.
Miss Atkinson was "really happy" to hear about the levy letter.
"It's amazing news, it's so good to hear. Our [initiative] is working to make people aware about [how plastic bags] are a big issue and want to change their habits ... we'll wait and see what happens."
However, not everyone the Rotorua Daily Post talked to were behind the idea.
Manish Kumar, from Star Superette on Tutanekai St, didn't agree with the levy.
"People shouldn't have to pay for a bag as well when they buy a product."
Kate Porter, Countdown's national communications and public affairs manager, said Countdown was keen to see New Zealand take action to reduce the use of single-use plastic bags.
"We would support a levy on bags where all proceeds went to environmental and waste reduction charities and which applied to all retailers so that no one profits financially from the levy."
She said Countdown had told ministers they would support government action on the matter.
Melissa Hodd, general manager government relations for Foodstuffs NZ, said it was engaged with the Government about the future management of plastic bags.
"These discussions are still evolving, so we're unable to commit to any specific proposal at this point. We believe the right approach is to encourage customers to reduce plastic bag usage while also dealing with the waste responsibly. We are making good progress in this area."
