Mayor Fenty Seeks to Raid Bag Tax Fund

 
 
April 02, 2010

A great catch by Greater Greater Washington.  David Alpert writes:

Mayor Fenty's proposed FY2011 budget reprograms the revenue from the Anacostia cleanup fund, generated by the 5¢ bag fee. The Council should quickly reject this approach.

...Wells Chief of Staff Charles Allen pointed out that because the law set up a special "Fund" for the bag fee revenue, the Mayor had to specifically call out the rearrangement of revenue in the budget and seek an "Intra-District Transfer" to reuse it. That calls attention to the move, making it easier for the Council to refuse.

The five cent bag tax in Washington was justified on two grounds.  First, it was meant to reduce the use of plastic bags.  That seems to have worked.  Next, money raised was meant to go into the "Anacostia Cleanup Fund" in order to improve the river's waterways.  With Fenty wanting to raid the fund for general services it is going to be a harder case to make in other places around the country that their proposed bag tax is anything more than a revenue grab.

More on bag taxes here and here.

Buy this blogger a cup of coffee!

Sizes

About the Tax Policy Blog

Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.

Monthly Archive

Privacy Policy