House Bill 21-1162 Bag Fee Compliance

More information on House Bill 21-1162 can be found on the State's website: https://tax.colorado.gov/carryout-bag-fee

House Bill 21-1162 Overview

House Bill 21-1162 states that starting January 1, 2023 and before January 1, 2024, stores (that meet the definition in HB 21-1162) may provide a customer with one or more recycled paper carryout bags or single-use plastic carryout bags at the point of sale only if the customer pays a carryout bag fee of ten cents per bag. 

Stores will collect the $0.10 bag fee and they get to keep this fee for 2023. 

Beginning January 1, 2024:

HB 21-1162, prohibits stores and retail food establishments from providing single-use plastic carryout bags to customers. Certain retail food establishments, and small stores that operate solely in Colorado and have three or fewer locations, may provide single-use plastic carryout bags. 

Stores will collect the $0.10 bag fee and they will begin to remit 60% of this fee quarterly to the Town of Snowmass Village by April 20, 2024 for the 1st quarter of 2024. The Town will set this up for the retailer in MUNIRevs, so they are able to remit this fee on a separate form along with their sales tax. The retailer will get to keep 40% of this fee.

The act does not apply to materials used in the packaging of pharmaceutical drugs, medical devices, or dietary supplements or any equipment or materials used to manufacture pharmaceutical drugs, medical devices, or dietary supplements. The State of Colorado has not exempted Marijuana businesses.  

The fee is NOT subject to local or state sales tax. It is a fee and not a tax.

If a retailer chooses to charge more than a $0.10 fee for a bag they cannot represent this charge as a “bag fee”.  The “bag fee” will be stated separately on the receipt and must be $0.10.  Any additional amount must be correctly reflected on the receipt as a charge for the bag and NOT a part of the “bag fee”.