The ordinance, introduced in August, would have fined businesses who use them $100 to $500. Businesses could sell reusable plastic shopping bags.
Councilman Michael DuPont showed a video supporting the ban.
But a merchant said she had ordered 10,000 bags that she would never use up before the ban would take effect in July.
Bag industry representatives said taking away the bags would encourage people to use thicker trash bags, which would place more plastic in landfills.
Information from: Asbury Park Press, http://www.app.com