In Colorado, the 10-cent carryout bag fee is remitted directly by stores to the finance department or an equivalent agency of the municipality within which the store is located. This means the funds are kept at the local level rather than going to the state.
Understanding Colorado's Carryout Bag Fee
Effective January 1, 2023, Colorado law introduced a statewide 10-cent fee on single-use plastic and paper carryout bags provided by certain retailers. This initiative aims to encourage the use of reusable bags and reduce waste. It's important for consumers to understand not just the fee itself, but also where these collected funds are directed.
The Destination of Your 10-Cent Bag Fee
Unlike some other state-level taxes or fees, the carryout bag fee in Colorado does not go to the Colorado Department of Revenue. Instead, the process is decentralized to ensure funds benefit the communities where they are collected.
Here's how the flow of the 10-cent fee works:
- Collection by Stores: When you purchase an item and request a carryout bag, the store collects the 10-cent fee.
- Remittance to Municipalities: Stores are legally required to send the collected fees to their local government. Specifically, Section 25-17-505(3)(d), C.R.S., mandates that stores remit the carryout bag fee to the finance department or a similar agency of the municipality where the store operates.
- Local Use: The funds then become part of the municipality's revenue. While the specific use of these funds can vary by local ordinance, they are generally intended to support local environmental programs, waste reduction efforts, or other community-based initiatives.
Key Takeaways:
- Local Impact: The money stays within the specific city or town where you make your purchase.
- Not a State Tax: The fee is not administered or collected by the Colorado Department of Revenue.
- Legal Basis: The requirement for stores to remit these fees to municipalities is outlined in state law (Section 25-17-505(3)(d), C.R.S.).
For more detailed information regarding the carryout bag fee and related regulations, you can consult the official Colorado Department of Revenue - Bag Fees page.
