Virginia Statewide Rule
Virginia Local Plastic Bag Tax Authority Under Code 58.1-1745
Key Facts
- Tax Authority
- Code 58.1-1745 authorizes 5-cent tax
- Store Types
- Grocery, convenience, drug stores only
- Retailer Share
- Retention reduced to 1 cent from 2023
- Revenue Use
- Funds environmental and food assistance
- Exemptions
- Reusable and paper bags exempt
Summary
Virginia Code 58.1-1745 authorizes counties and cities to impose a 5-cent tax on disposable plastic bags provided at grocery stores, convenience stores, and drugstores within their borders.
§ 58.1-1745 . Disposable plastic bag tax. A. Any county or city may, by duly adopted ordinance, impose a tax in the amount of five cents ($0.05) for each disposable plastic bag provided, whether or not provided free of charge, to a consumer of tangible personal property by retailers in grocery stores, convenience stores, or drugstores. B. Any tax imposed under this section shall be collected by the retailer, along with the purchase price and all other fees and taxes, at the time the consumer pays for such personal property. All revenue accruing to the county or city from a tax imposed under the provisions of this article shall be appropriated for the purposes of environmental cleanup, providing education programs designed to reduce environmental waste, mitigating pollution and litter, or providing reusable bags to recipients of Supplemental Nutrition Assistance Program (SNAP) or Women, Infants, and Children Program (WIC) benefits. C. Each local ordinance imposing the tax shall provide for the tax to become effective on the first day of any calendar quarter; however, in no event shall any tax imposed pursuant to this article become effective before January 1, 2021. The county or city shall, at least three months prior to the date the tax is to become effective, provide a certified copy of such ordinance to the Tax Commissioner. D.
Full Breakdown
Effective January 1, 2021, Virginia Code 58.1-1745 permits any county or city to impose a 5-cent per bag tax on disposable plastic bags provided to consumers at grocery, convenience, and drug stores. Adopting localities include Arlington, Fairfax, Alexandria, Roanoke, and others. Retailers retain 2 cents per bag through 2022 and 1 cent thereafter to cover compliance costs. Reusable bags, paper bags, and bags for ice cream, prescriptions, or wrapped meat are exempt. Revenues fund environmental cleanup, education, and reusable bag distribution to SNAP and WIC recipients.
Violations & Penalties
Retailers failing to collect and remit the bag tax face penalties under Title 58.1 enforcement provisions, including interest, late filing penalties, and potential audit assessments. The Tax Department administers compliance like other state-collected local taxes.
Frequently Asked Questions
Is the plastic bag tax statewide?
Are restaurant takeout bags taxed?
Sources
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