2023 Carryout Bag Fee

Is your business ready to collect the 10 cent bag fee, you need to collect starting January 1st, 2023?  If not, here is everything you need to know and so much more. 

In 2021, the Colorado General Assembly enacted House Bill 21-1162. Beginning January 1, 2024, the act prohibits stores and retail food establishments from providing single-use plastic carryout bags to customers. Certain retail food establishments, and small stores that operate solely in Colorado and have 3 or fewer locations, may provide single-use plastic carryout bags. 

Between January 1, 2023, and January 1, 2024, a store may furnish a recycled paper carryout bag or a single-use plastic carryout bag to a customer at the point of sale if the customer pays a fee of 10 cents per bag or a higher fee adopted by the municipality or county in which the store is located. On and after January 1, 2024, a store may furnish only a recycled paper carryout bag to a customer at the point of sale at a fee of 10 cents per bag or a higher fee imposed by the municipality or county in which the store is located.

A store is required to remit, on a quarterly basis beginning April 1, 2024, 60% of the carryout bag fee revenues to the municipality or county within which the store is located and may retain the remaining 40% of the carryout bag fee revenues. 
The carryout bag fee does not apply to a customer that provides evidence to the store that the customer is a participant in a federal or state food assistance program.

The act does not apply to materials used in the packaging of pharmaceutical drugs, medical devices, or dietary supplements or any equipment or materials used to manufacture pharmaceutical drugs, medical devices, or dietary supplements.

Please review the full text of HB21-1162 for a complete discussion of the requirements, restrictions, and penalties imposed under the act.

https://tax.colorado.gov/carryout-bag-fee

Frequently asked questions:  

1.  The bag fee is administered by the county the business resides in.  For most of that, that is Douglas County.  
      https://www.douglas.co.us/finance/carryout-bag-fee/
2.  You do NOT collect sales tax on the bag fee. 
3.  We recommend you make signage for your store front and cash registers to notify customers of this regulation. 
4.  Idea:  Branded re-useable bags, to sell. Check out our member Graphic Creations to meet your reusable bag needs:  https://www.graphiccreations.com/
5.  First payment is due on April 20.  Here is the submittal form for Douglas County:  https://www.douglas.co.us/documents/carryout-bag-fee-return-instructions.pdf/