Paper and plastic bags; imposes tax of five cents on disposable bags used by purchasers, etc. (HB117)

Introduced By

Sen. Joe Morrissey (D-Richmond)

Description

Paper and plastic bag tax. Imposes a tax of five cents ($0.05) beginning on July 1, 2015, on disposable paper bags and disposable plastic bags used by purchasers to carry tangible personal property purchased in grocery stores, convenience stores, or drug stores. The following would be exempt from the tax: durable, reusable plastic bags; plastic bags used to carry ice cream, meat, fish, poultry, leftover restaurant food, newspapers, and dry cleaning; paper and plastic bags used to carry alcoholic beverages or prescription drugs; and multiple plastic bags sold in packages and intended for use as garbage, pet waste, or leaf removal bags. Retailers are allowed to retain one cent ($0.01) of the five-cent ($0.05) tax or two cents ($0.02) if the retailer has a customer bag credit program. Failure to collect and remit the tax will result in fines of $250, $500, and $1,000 for the first, second, and third and subsequent offenses, respectively. The revenues from the tax would be deposited into the Virginia Water Quality Improvement Fund. The bill also authorizes each county and city by ordinance to impose a tax on disposable paper bags and disposable plastic bags at the same rate and under the same terms and conditions as the state tax. Revenues from the local tax would be collected by the Tax Commissioner and distributed monthly to the county or city imposing the tax. Each county or city adopting an ordinance to impose the tax would be required to provide a certified copy of the ordinance to the Tax Commissioner at least six months prior to the date the tax is to become effective. Read the Bill »

Outcome

History