D.C. Seeks Bag Tax Regulation Clarifications
February 5, 2010
The proposed regulations, which will become law following a 30-day public comment period, state the tax will apply to bakeries, delicatessens, grocery stores, convenience stores that sell food, restaurants, street vendors that sell food, liquor stores as well as “any business that sells food items.”
The tax also will apply to stores that sell both food and non-food items, such as many pharmacies, regardless of whether a customer purchases food or another item.
But the new regulations, published in the D.C. Register, state the tax will generally not apply to bags used to package goods inside food stores.
For example, a customer cannot be charged for bags used inside a store to “package bulk items, such as fruit, nuts, grains or candy.”
Bags that package newspapers, prescription drugs, laundry or dry cleaning are also exempt, as are “paper carryout bags provided to a customer to take away food from a restaurant.”
Read the full article here.
For more on the District of Columbia tax, see the Tax Foundation report, “D.C. Charge on Plastic Bags is a Tax, Not a Fee,” (11/17/09).
For more on Seattle’s aborted bag tax, see the Tax Foundation reports, “Proposed Seattle Bag Tax Criticized,” (6/30/08) and “No Bag Tax in Seattle,” (8/19/09). For information on Ireland’s bag tax and the motivations for bag taxes generally, check out “Bootleggers, Baptists, and Ireland’s Bag Tax” (8/31/05).
Was this page helpful to you?
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?Contribute to the Tax Foundation
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?Give Us Feedback