County Council Passes Five-Cent Bag Tax

May 4, 2011 by · Leave a Comment 

County Council Passes Five-Cent Bag Tax

The Montgomery County Council today approved Bill 8-11 that will create
a five-cent charge on each paper or plastic bag provided by a retail
establishment to a customer at point of sale, pickup or delivery. The
bill is intended to inspire consumers to use more reusable bags, which
in turn could lead to fewer bags littering the environment.

Neil H. Greenberger
Legislative Information Officer
Montgomery County Council
240-777-7939

Montgomery County Council Approves
5-Cent Tax on Carryout Bags

Bill 8-11 Creates Charge on Paper or Plastic Bags Provided by Retail Establishment at Point of Sale, Pickup or Delivery

ROCKVILLE, Md., May 3, 2011-The Montgomery County Council today approved Bill 8-11 that will create a five-cent charge on each paper or plastic bag provided by a retail establishment to a customer at point of sale, pickup or delivery. The bill is intended to inspire consumers to use more reusable bags, which in turn could lead to fewer bags littering the environment.

The tax, which was proposed by County Executive Isiah Leggett, was approved by an 8-1 vote. Councilmembers Phil Andrews, Roger Berliner, Marc Elrich, Valerie Ervin, George Leventhal, Nancy Navarro, Craig Rice and Hans Riemer voted to approve the tax. Councilmember Nancy Floreen was opposed.

The proposed tax will not apply to bags provided by a pharmacy containing prescription drugs; a newspaper bag or bag intended for
initial use as a garbage, pet waste or yard waste; a bag provided at a seasonal event, such as a farmers market; or a paper bag that a restaurant gives a customer to take prepared food or drinks from the restaurant. The tax also will not apply if the bag is used to package a bulk item (such as small items at a food or hardware store) or to wrap perishable items (such as fresh or frozen food or flowers).

Retail establishments will retain one-cent of each five-cent tax to cover administration fees of collection. The establishment would be
required to indicate on a transaction receipt the number of bags provided.

The law will take effect Jan. 1, 2012.

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About Dan

Dan is the founder and president of Foster Spahr Real Estate. He has lived in the Washington DC area for over 30 years and currently resides in the Cameron Hill community of Downtown Silver Spring with his wife Stephany and their son Chase. Dan holds a BA in Economics from the University of MD and currently serves as the President of the Cameron Hill HOA.

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