SENATE BILL REPORT

SB 5248

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 13, 2013

Title: An act relating to creating a tax on plastic shopping bags.

Brief Description: Creating a tax on plastic shopping bags.

Sponsors: Senators Chase and Kline.

Brief History:

Committee Activity: Ways & Means: 2/14/13.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Dean Carlson (786-7305)

Background: It is estimated that 100 billion single-use plastic bags are used each year in the United States and 1.8 billion are used in Washington. The single-use plastic bags are used to carry goods home from retail stores.

Currently, seven cities have or will have bans on single-use plastic bags at retail stores. Some of the cities require a minimum pass-through charge of $0.05 for the use of recyclable paper bags at the retail establishment.

Summary of Bill: A tax is imposed on each plastic bag supplied by a seller to a buyer at a retail sale. The rate of the tax is $0.02 per plastic bag. The tax must be paid by the buyer to the seller and must be separately stated on the invoice. The seller must remit the tax to the Department of Revenue by the 25th of the month following the month in which the tax was collected. Revenues from the tax are deposited into the general fund.

Plastic bag is defined as a bag or pouch of flexible packaging made of thin, flexible, plastic film that is designed and intended to be used for the carrying of goods purchased at a retail establishment and that is provided to the consumer by the retail establishment at the point of sale.

Appropriation: None.

Fiscal Note: Available.

[OFM requested ten-year cost projection pursuant to I-960.]

Committee/Commission/Task Force Created: No.

Effective Date: The bill takes effect on October 1, 2013.