SB11: Disposable plastic bags; local tax.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Chapter 17 of Title 58.1 an article numbered 12, consisting of sections numbered 58.1-1745 through 58.1-1748, as follows:
§ 58.1-1745. Disposable plastic bag tax.
A. Any county or city may, by duly adopted ordinance, impose a tax in the amount of five cents ($0.05) for each disposable plastic bag provided, whether or not provided free of charge, to a consumer of tangible personal property by retailers in grocery stores, convenience stores, or drugstores.
B. Any tax imposed under this section shall be collected by the retailer, along with the purchase price and all other fees and taxes, at the time the consumer pays for such personal property. All revenue accruing to the county or city from a tax imposed under the provisions of this article shall be appropriated for the purposes of environmental cleanup, providing education programs designed to reduce environmental waste, mitigating pollution and litter, or providing reusable bags to recipients of Supplemental Nutrition Assistance Program (SNAP) or Women, Infants, and Children Program (WIC) benefits.
C. Each local ordinance imposing the tax shall provide for the tax to become effective on the first day of any calendar quarter; however, in no event shall any tax imposed pursuant to this article become effective before January 1, 2021. The county or city shall, at least three months prior to the date the tax is to become effective, provide a certified copy of such ordinance to the Tax Commissioner.
§ 58.1-1746. Exemptions.
Any tax imposed pursuant to the provisions of this article shall not apply to the following:
1. Durable plastic bags with handles that are specifically designed and manufactured for multiple reuse and that are at least four mils thick;
2. Plastic bags that are solely used to wrap, contain, or package ice cream, meat, fish, poultry, produce, unwrapped bulk food items, or perishable food items in order to avoid damage or contamination;
3. Plastic bags used to carry dry cleaning or prescription drugs; and
4. Multiple plastic bags sold in packages and intended for use as garbage, pet waste, or leaf removal bags.
§ 58.1-1747. Retailer discount.
A. Beginning January 1, 2021, and ending January 1, 2023, every retailer that collects a tax imposed by a county or city under this article shall be allowed to retain two cents ($0.02) from the tax collected on each disposable plastic bag.
B. Beginning January 1, 2023, every retailer that collects a tax imposed by a county or city under this article shall be allowed to retain one cent ($0.01) from the tax collected on each disposable plastic bag.
C. Any retailer that retains a discount pursuant to this section shall account for it in the form of a deduction when submitting its tax return and paying the amount due in a timely manner.
§ 58.1-1748. Administration.
The Tax Commissioner shall collect, administer, and enforce this tax in the same manner that he collects, administers, and enforces the retail sales and use tax under Chapter 6 (§ 58.1-600 et seq.), mutatis mutandis. However, the dealer discount provided under § 58.1-622 shall not be allowed and the revenues from the tax authorized under this section, after reimbursement of direct costs incurred by the Department in administering, enforcing, and collecting this tax, shall be distributed by the Comptroller to the respective county or city imposing the tax as soon as practicable after the end of each month for which the tax is remitted. The Tax Commissioner shall develop and make publicly available guidelines implementing the provisions of this article. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Chapter 17 of Title 58.1 an article numbered 12, consisting of a section numbered 58.1-1745, as follows:
§ 58.1-1745. Plastic bag tax.
A. Any locality may, by duly adopted ordinance, impose upon every consumer of tangible personal property a tax in the amount of five cents ($0.05) for each disposable plastic bag provided, whether free or for a cost, to the consumer by a retailer in a grocery store, convenience store, or drug store. Such ordinance shall provide for collection, administration, and enforcement of such tax by the locality. The tax shall be collected by the retailer, along with the purchase price and all other fees and taxes, at the time the consumer pays for such personal property. However, beginning July 1, 2020, but before January 1, 2023, every retailer that collects any tax imposed under this article shall be allowed to retain two cents ($0.02) from every five cents ($0.05) collected, provided that such discounts are accounted for in the form of a deduction when submitting the tax return and paying the amount due in a timely manner. Beginning on January 1, 2023, every retailer that collects any tax imposed under this article shall be allowed to retain one cent ($0.01) from every five cents ($0.05) collected, provided that such discounts are accounted for in the form of a deduction when submitting the tax return and paying the amount due in a timely manner.
B. Any tax imposed under this article shall not apply to the following:
1. Durable plastic bags with handles that are specifically designed and manufactured for multiple reuse;
2. Plastic bags used to carry ice cream, meat, fish, poultry, leftover restaurant food, newspapers, or dry cleaning;
3. Plastic bags used to carry alcoholic beverages or prescription drugs; and
4. Multiple plastic bags sold in packages and intended for use as garbage, pet waste, or leaf removal bags.
C. Each ordinance imposing the tax shall provide for the tax to become effective on the first day of any calendar quarter. The locality shall, at least six months prior to the date the tax is to become effective.
D. All tax revenue accruing to the locality from a tax imposed under this section shall be used for the purposes of local and regional recycling programs, solid waste and environmental cleanup, water pollution mitigation, or mitigation of pollution and litter.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Chapter 38 of Title 58.1 an article numbered 7.2, consisting of sections numbered 58.1-3835, 58.1-3836, and 58.1-3837, as follows:
§ 58.1-3835. Disposable plastic bag tax.
A. There is hereby imposed on each locality in Planning District 8 a tax in the amount of five cents ($0.05) for each disposable plastic bag provided, whether or not provided free of charge, to a consumer of tangible personal property by retailers in grocery stores, convenience stores, or drugstores. Each such locality shall provide for collection, administration, and enforcement of such tax by the locality and shall allow a retailer discount as required by § 58.1-3837.
B. Any locality not located in Planning District 8 may by ordinance impose a tax in the amount of five cents ($0.05) for each disposable plastic bag provided, whether or not provided free of charge, to a consumer of tangible personal property by retailers in grocery stores, convenience stores, or drugstores. Such ordinance shall provide for collection, administration, and enforcement of such tax by the locality and shall include provisions allowing a retailer discount as required by § 58.1-3837.
C. Any tax imposed under this section shall be collected by the retailer, along with the purchase price and all other fees and taxes, at the time the consumer pays for such personal property, and such tax shall be remitted to the locality in which it is collected. All revenue accruing to the locality from a tax imposed under the provisions of this article shall be appropriated for the purpose of environmental cleanup, education programs designed to reduce environmental waste, or mitigating pollution and litter.
§ 58.1-3836. Exemptions.
Any tax imposed pursuant to the provisions of this article shall not apply to the following:
1. Durable plastic bags with handles that are specifically designed and manufactured for multiple reuse;
2. Plastic bags used to carry ice cream, meat, fish, poultry, produce, unwrapped bulk food items, perishable food items, leftover restaurant food, newspapers, or dry cleaning;
3. Plastic bags used to carry alcoholic beverages or prescription drugs; and
4. Multiple plastic bags sold in packages and intended for use as garbage, pet waste, or leaf removal bags.
§ 58.1-3837. Retailer discount.
A. Beginning July 1, 2021, and ending July 1, 2023, every retailer that collects a tax imposed by a locality under this article shall be allowed to retain two cents ($0.02) from the tax collected on each disposable plastic bag, provided that each such retailer shall dedicate at least 50 percent of such retained amount to promoting the use of reusable bags by its customers.
B. Beginning July 1, 2023, every retailer that collects a tax imposed by a locality under this article shall be allowed to retain one cent ($0.01) from the tax collected on each disposable plastic bag, and there shall be no restriction on the use of such retained amount.
C. Any retailer that retains a discount pursuant to this section shall account for it in the form of a deduction when paying the amount due to the locality.
2. That the provisions of this act shall become effective on July 1, 2021.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Chapter 38 of Title 58.1 an article numbered 7.2, consisting of sections numbered 58.1-3835 through 58.1-3838, as follows:
§ 58.1-3835. State disposable plastic bag tax.
A. There is hereby imposed a state tax in the amount of five cents ($0.05) for each disposable plastic bag provided, whether or not provided free of charge, to a consumer of tangible personal property by retailers in grocery stores, convenience stores, or drugstores. Any tax imposed under this section shall be collected by the retailer, along with the purchase price and all other fees and taxes, at the time the consumer pays for such personal property, and such tax shall be remitted to the Department.
B. After applying the discount provided in § 58.1-3837, tax revenue collected pursuant to this section shall accrue to the general fund.
§ 58.1-3836. Exemptions.
Any tax imposed pursuant to the provisions of this article shall not apply to the following:
1. Durable plastic bags with handles that are specifically designed and manufactured for multiple reuse;
2. Plastic bags used to carry ice cream, meat, fish, poultry, produce, unwrapped bulk food items, perishable food items, leftover restaurant food, newspapers, or dry cleaning;
3. Plastic bags used to carry alcoholic beverages or prescription drugs; and
4. Multiple plastic bags sold in packages and intended for use as garbage, pet waste, or leaf removal bags.
§ 58.1-3837. Retailer discount.
A. Beginning July 1, 2021, and ending July 1, 2023, every retailer that collects the tax imposed by this article shall be allowed to retain two cents ($0.02) from the tax collected on each disposable plastic bag, provided that each such retailer shall dedicate at least 50 percent of such retained amount to promoting the use of reusable bags by its customers, according to procedures and guidelines established by the Department.
B. Beginning July 1, 2023, every retailer that collects the tax imposed by this article shall be allowed to retain one cent ($0.01) from the tax collected on each disposable plastic bag, and there shall be no restriction on the use of such retained amount.
C. Any retailer that retains a discount pursuant to this section shall account for it in the form of a deduction when submitting the tax return and paying the amount due in a timely manner.
§ 58.1-3838. Administration.
The Tax Commissioner shall collect, administer, and enforce all taxes imposed pursuant to the provisions of this article in the same manner that he collects, administers, and enforces the retail sales and use tax under Chapter 6 (§ 58.1-600 et seq.), mutatis mutandis. However, the dealer discount provided under § 58.1-622 shall not be allowed. The Tax Commissioner shall develop and make publicly available guidelines implementing the provisions of this article. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).
2. That the provisions of this act shall become effective on July 1, 2021.
SENATE BILL NO. 11
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Chapter 38 of Title 58.1 an article numbered 7.2, consisting of a section numbered 58.1-3835, as follows:
§ 58.1-3835. Disposable paper bag and plastic bag tax.
A. Any locality may, by duly adopted ordinance, impose upon every consumer of tangible personal property a tax in the amount of five cents ($0.05) for each disposable paper bag or disposable plastic bag provided, whether or not provided free of charge, to the consumer by retailers in grocery stores, convenience stores, or drugstores. The tax shall be collected by the retailer, along with the purchase price and all other fees and taxes, at the time the consumer pays for such personal property. However, every retailer that collects the tax imposed by this article shall be allowed to retain one cent ($0.01) from every five cents ($0.05) collected, provided that such retailer discounts are accounted for in the form of a deduction when submitting the tax return and paying the amount due in a timely manner.
B. The tax imposed by this article shall not apply to the following:
1. Durable plastic bags with handles that are specifically designed and manufactured for multiple reuse;
2. Plastic bags used to carry ice cream, meat, fish, poultry, produce, unwrapped bulk food items, perishable food items, leftover restaurant food, newspapers, or dry cleaning;
3. Paper and plastic bags used to carry alcoholic beverages or prescription drugs; and
4. Multiple plastic bags sold in packages and intended for use as garbage, pet waste, or leaf removal bags.
C. The Tax Commissioner shall collect, administer, and enforce this tax in the same manner that he collects, administers, and enforces the retail sales and use tax under Chapter 6 (§ 58.1-600 et seq.), mutatis mutandis. However, the dealer discount provided under § 58.1-622 shall not be allowed and the revenues from the tax authorized under this section, after reimbursement of direct costs incurred by the Department of Taxation in administering and collecting this tax, shall be distributed by the Comptroller to the respective locality imposing the tax as soon as practicable after the end of each month for which the tax is remitted. The Tax Commissioner shall develop and make publicly available guidelines implementing the provisions of this article. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).
The Department shall enforce the provisions of this article.
D. Each local ordinance imposing the tax shall provide for the tax to become effective on the first day of any calendar quarter. The locality shall, at least six months prior to the date the tax is to become effective, provide a certified copy of such ordinance to the Tax Commissioner.