Colorado Single-Use Bag Fee
Colorado’s Plastic Pollution Reduction Act
Beginning January 1, 2023, per Colorado House Bill 21-1162, businesses with more than three locations in Colorado will need to impose a 10-cent fee on single-use plastic and paper bags. This will impact businesses in the City of Lone Tree.
Beginning January 1, 2024, Colorado law will ban single-use plastic bags at most stores and polystyrene foam (styrofoam) takeout containers at restaurants.
Positive Impacts on the Planet
Did you know, Coloradans use an estimated 4.6 million single-use plastic bags and 1.2 million polystyrene cups every day? Plastic bags are produced from non-renewable resources and are difficult to recycle. They may make for a handy dog poop bag in a pinch, but they fill up landfills and take more than 1,000 years to decompose! Using reusable bags for your grocery and shopping needs will help create a more sustainable ecosystem and economy.
What businesses must follow the single-use bag fee?
- Grocery stores and supermarkets
- Convenience stores
- Liquor stores
- Retailers
- Other stores that provide plastic bags
- Including any self-checkout and delivery services
Are there any exemptions to the bag fee?
- Smaller stores with three or fewer locations in Colorado
- Restaurants
What is a single-use bag?
A single-use bag means a bag that is not reusable and is destined for our local landfill or recycling process. The bag fee and ban are only on single-use plastic and paper bags distributed to customers at the point of sale. This does not include reusable bags that may be provided by the store or any bag brought in by the customer to be used.
Single-use bag does not include:
- Bags used by consumers inside stores to:
- Package bulk items, such as fruit, vegetables, nuts, grains, candy, or small hardware items
- Contain or wrap frozen foods, meat, or fish
- Contain or wrap flowers, potted plants, or other items where dampness may be a problem
- Contain unwrapped prepared foods or bakery goods
- A non-handled bag used to protect a purchased item from damaging or contaminating other purchased items when placed in a recyclable paper bag or reusable bag
- Bags provided by pharmacists to contain prescription drugs
- Newspaper bags, door-hanger bags, laundry-dry cleaning bags, or bags sold in packages containing multiple bags for uses such as food storage, garbage, pet waste, or yard waste bags
When does the single-use bag fee take effect?
The statewide single-use bag fee takes effect on Jan. 1, 2023.
How much is the bag fee?
The fee is ten cents ($0.10) per plastic or paper bag.
What businesses must follow the plastic bag and Styrofoam ban starting on January 1, 2024?
-
- All of the businesses that must follow the single-use bag fee
- Including any self-checkout and delivery services
- Restaurants
Must stores charge all customers the bag fee?
Stores must charge the single-use bag fee to their customers at the point of sale, except those who provide proof of participation in a federal or state food assistance program such as SNAP or EBT.
How can I avoid the bag fee?
Customers can avoid paying the 10-cent bag fee by using their own bag that they bring with them to the store. Some stores offer reusable bags for purchase, or even offer reusable bag credits so you could save while you shop with your own bag! Customers can also choose not to bag their purchases.
Will I be charged if I bring my own plastic or paper bag?
No. The single-use bag fee will not apply to bags you bring to a store for reuse, including plastic and paper bags you already have and want to reuse.
Does the fee apply to bags used for delivery orders or self-checkout?
Yes. The bag fee must be applied to each single-use bag provided at self-checkout or delivery orders from stores required to charge a bag fee.
Does my business need to charge a single-use bag fee?
The below businesses must pass the single-use bag fee to their customers based on each paper or plastic bag used at check out:
- Grocery stores and supermarkets
- Convenience stores
- Liquor stores
- Retailers
- Other stores that provide plastic bags
- Including any self-checkout and delivery services
Are there any exemptions to the bag fee?
- Smaller stores with three or fewer locations in Colorado
- Restaurants
How do businesses comply with the bag fee?
Per a Colorado law passed in 2021, stores and retail food establishments, with more than 3 locations in Colorado, will be required to charge customers a $0.10 fee for each single-use plastic and paper bag used at the point of sale starting on January 1, 2023. 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 City on a quarterly basis.
The bag fee is not subject to City of Lone Tree or State Sales Tax.
The fee will be remitted quarterly via a XpressBillPay form. You can find that form here>>
Please note: You do not need to apply for a new account or license for the Bag Fee requirement.
Voluntary bag fee remittance for the first quarter will be due on April 20, 2023.
Mandatory bag fee remittance will be due on April 20, 2024.
What will the fee money be used for?
Businesses keep four cents of the fee in order to cover their costs complying with the State law, administration, training employees, etc.
The remaining six cents is remitted to the City of Lone Tree for the uses below:
- Administrative or enforcement costs associated with developing and implementing the fee
- Educating residents, businesses, and visitors about the impacts of disposable bags
- Other waste reduction, recycling, composting, or waste diversion programs
Note: The single-use bag fee is a fee, not a tax and therefore all proceeds collected in accordance with this State law can only be used for the purposes listed above and cannot be used for general government expenses.
How is the fee monitored?
A store must record on a customer’s receipt the number of single-use bags and the total amount of fees charged for each bag. The bag fee is not subject to City of Lone Tree or State Sales Tax.