Per Colorado House Bill HB21-1162, beginning January 01, 2023, businesses meeting the criteria outlined in the bill will be required to collect $0.10 per recycled paper carryout bag or single-use plastic carryout bag provided to a customer at the point of sale.
The bill also bans single-use plastic bags and polystyrene to-go food containers starting January 1, 2024. There are exceptions, please see below.
Businesses will retain four cents of the fee to cover the costs of administration and compliance, while six cents is to be remitted to the Town on a quarterly basis.
What businesses must follow the single-use bag fee?
- Major grocery stores and supermarkets.
- Major convenience stores.
- Major liquor stores.
- Major retailers.
- Other major stores that provide plastic bags including any self-checkout and delivery services.
Exemptions:
- Businesses with three or fewer locations in Colorado.
- Farmers and roadside markets.
- Laundry or dry-cleaning services.
- Pharmacies.
- Bulk stores.
- Restaurants are exempt from the plastic bag fee, but are prohibited from distributing Styrofoam containers on and after January 1, 2024.
The bag fee does not apply to anyone who provides proof of participation in federal or state food assistance programs such as SNAP or EBT.
Reporting and Paying Your Bag Fee:
Starting after the first quarter 2024, the Bag Fee Report & Remittance Form is due to the Town of Gypsum on the 20th of the month following the quarter end. The gap between the fee start date of January 1, 2023, and the fee remission date of April 1, 2024, is the result of a drafting error in the legislation. However, the Town of Gypsum is providing the fee remission form now to assist businesses subject to the law to remit fees in 2023, rather than waiting until 2024 if it helps with tracking and accounting. That said, by law, no fees are required to be remitted until April 1, 2024.
- First Quarter (January - March) -- Due April 20th
- Second Quarter (April - June) -- Due July 20th
- Third Quarter (July - September) -- Due October 20th
- Fourth Quarter (October - December) -- Due January 20th
- The return is due the next business day if the 20th is on a Saturday, Sunday, or legal holiday.
If bag fees due to the Town for a particular quarter do not amount to $20 or more, the business may retain those collected fees until such time as they have accumulated at least $20 total and remit in that quarter. However, businesses are required to submit information quarterly whether revenues exceed $20 or not.
To report and remit your bag fees to the Town of Gypsum, please fill out the
Bag Fee Report & Remittance Form and submit it per the instructions on the form.
Bag Fee Uses:
Since the bag fee is a fee and not a tax, all proceeds collected in accordance with this State law may only be used for the purposes listed below and may not be used for general government expenses or for general sustainability projects. The fees collected under this law will be tracked and managed in a separate fund established by Finance staff.
- Administrative or enforcement costs associated with developing and implementing the fee.
- Providing reusable bags to the community.
- Educating residents, businesses, and visitors about the impacts of disposable bags.
- Other waste reduction, recycling, composting, or waste diversion programs.