5-Cent Plastic Bag Tax To Be Considered In Alexandria

ALEXANDRIA, VA — The City of Alexandria will consider a disposable plastic bag tax this fall, according to the Transportation & Environmental Services Department.

Localities can adopt a 5-cent tax on each disposable plastic bag by authority of 2020 Virginia legislation. The Virginia Department of Tax Administration released draft guidelines for plastic bag tax ordinances in late July.

The city currently is working with the state for clarifications on the state law. City staff will then present a draft ordinance for City Council to consider this fall. Because there are only draft guidelines from the state, the city's ordinance could be amended once Virginia's tax commissioner releases final guidelines.

The city cited environmental impacts as a reason to consider the plastic bag tax. Plastic bags are commonly found in waterways, and plastic bags contain microscopic particles that can be ingested by animals and people.

Under the state law, local plastic bag tax ordinances can take effect on the first day of a calendar year. If approved by City Council, the tentative implementation date of the Alexandria plastic bag tax would be Jan. 1, 2022.

The 5-cent tax for each disposable plastic bag would be charged to customers at grocery stores, convenience stores and drugstores. It would not apply to durable plastic bags with handles designed for reuse, plastic bags used to wrap certain foods to avoid damage or contamination, plastic bags for dry cleaning or prescription drugs and multiple plastic bags sold in packages and intended for use as garbage, pet waste or leaf removal bags.

Retailers that would charge a plastic bag tax would keep a portion of the tax due to the costs of collecting, accounting for and remitting the tax. Through Jan. 1, 2023, retailers would keep two cents for every five cents collected on each plastic bag. After that time, retailers would retain one cent for every five cents collected.

Any remaining revenue goes to the locality after the retailer deductions and collection costs by the Virginia Department of Taxation.

Under state law, revenue from the tax can go toward environmental cleanup, educational programs to reduce environmental waste, mitigation of pollution or litter and reusable bags for recipients of Supplemental Nutrition Assistance Program (SNAP) or Women, Infants, and Children Program (WIC) benefits.

In May, the city sent a letter requesting feedback from approximately 115 grocery stores, drug stores and convenience stores. The city asked about current use of plastic bags, potential challenges of implementing a plastic bag tax and what resources would be helpful to communicate the tax to customers.

Neighboring Fairfax County is also considering a plastic bag tax and has set a public hearing for September.

For more information, visit Transportation & Environmental Services' plastic bag tax web page.