Virginia Local Plastic Bag Tax Authority Under Code 58.1-1745

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.

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.