The Fairfax
County Board of Supervisors recently passed a five-cent tax on plastic bags
that goes into effect January 1, 2022. Let’s take a closer look at this new ordinance and see how it will affect businesses and consumers in Fairfax County.
The General Assembly authorized the tax during the last session so it will be collected by the state in the same manner as the Retail Sales and Use Tax and then dispersed back to Fairfax County.
The tax is levied “for each disposable plastic bag provided to a consumer of tangible personal property by retailers in grocery stores, convenience stores, or drugstores.” This tax will apply to small retailers and big box stores that sell groceries or have a pharmacy. It applies to gasoline stations that have convenience stores. The tax will apply to groceries purchased through an online delivery service based in Fairfax County.
Exemptions to the five-cent tax include restaurants use like putting a carry-out meal in a plastic bag. Other retailers such as clothing, office supply or hardware stores are also exempt.
For grocery
stores, convenience stores and drugstores there are some additional exemptions
from the tax. These plastic bags will
not be taxed: 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) Plastic bags sold
in packages and intended for use as garbage, pet waste, or leaf removal bags.
These bags are all exempt from the tax.
To
help retailers implement this new tax they will be able to retain a percentage
of the tax revenue for their use. That amount will be two cents per bag for 2022
and then one cent per bag beginning January 1, 2023.
It is unclear how much revenue Fairfax County will get from this new tax. State-wide estimates of revenue collection are between $20 – 25 million. In 2012, Montgomery County
implemented a similar tax and a 2018 news story reported $2.41 million in
revenue. This revenue declined over time as consumers became more accustomed to
bringing their own reusable bags when shopping.
How will Fairfax County use the
revenue from this new tax? The General Assembly says revenue from this tax may
be used for environmental
cleanup programs, pollution and litter mitigation programs, educational
programs on environmental waste reduction, and providing reusable bags to
recipients of Supplemental Nutrition Assistance Program (SNAP) or Women,
Infants, and Children Program (WIC) benefits.
For more information on the plastic bag tax visit www.fairfaxcounty.gov/environment-energy-coordination/disposable-plastic-bag-tax-fairfax-county
