Bill > S1501

This bill proposes to establish an excise tax on the use of plastic carryout bags by certain stores, defined as retail establishments that grossed over $1,000,000 in the previous tax year. The bill introduces a new chapter to the General Laws, defining terms such as "plastic carryout bag" (excluding bags for loose produce), "compostable plastic carryout bag" (meeting specific ASTM standards), and "reusable bag" (designed for multiple uses and made of durable material). Stores will be required to pay an excise tax to the commissioner of revenue, with the tax rate increasing incrementally from .02 cents per bag starting in 2016, reaching .15 cents per bag by 2021. Customers will not be taxed for using their own bags, paper bags, or reusable bags, nor if they request no bag. Revenue collected will be split, with 50% returned to the store for improving recycling practices and awareness, and the remaining 50% credited to the Commonwealth for related recycling initiatives. Additionally, the bill allows for a tax deduction of up to $100 for the purchase of reusable bags.