To: Honorable Mayor and Members of Town Council
From: Kristin Read, Assistant Town Manager
Title
Update: State Carryout Bag Fee
Body
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Executive Summary
The Colorado General Assembly in 2021 passed House Bill 1162, of which the ultimate goal is to eliminate the use of single-use plastic carryout bags and plastic foam products within Colorado starting in 2024.
Before those prohibitions begin, a carryout bag fee will go into effect - including at stores within Castle Rock - beginning January 1, 2023. The State-imposed fee is 10 cents per paper or plastic bag, and consumers can expect to begin paying this at most stores at this time.
There are some exemptions to the bag fee, including for small businesses and restaurants. Additionally, there will not be a charge for bags for dry cleaning, prescriptions, unwrapped foods, meat and seafood, small hardware items and bulk items.
While stores’ ability to provide plastic bags will go away on January 1, 2024, the bag fee will not - 10 cents will be charged for paper bags ongoing. Retailers will keep 4 cents of the fee to aid in implementation of the law. They will remit the remaining 6 cents to the Town, which can use the fee toward implementation or environmental programs.
The Town’s Sales Tax Division will oversee this process within Castle Rock. While stores must begin charging the fee in January 2023, they do not need to begin remitting it to the Town until April 1, 2024. The Sales Tax Division will accept remittance earlier than that date, should businesses wish to remit sooner.
The purpose of this item is to ensure Council and the community are aware of this upcoming State law that will have impacts for many businesses and all consumers within Castle Rock. The full text of the bill is attached (Attachment A).
Attachment
Attachment A: House Bill 21-1162