Under a new state law, retail establishments must charge 10 cents per recycled paper carryout bag or single-use plastic carryout bag at the point of sale. Customers that provide documentation of participation in a federal or state food assistance program are exempt from the fee.
It is a statewide fee as a result of House Bill 21-1162, which is known as the Plastic Pollution Reduction Act. The aim is to reduce pollution. Read more about the impact of carryout bags.
Examples include but are not limited to the following: grocery stores, supermarkets, convenience stores, liquor stores, dry cleaners, pharmacies, drug stores, clothing stores and festivals or other temporary vendor or event. Farmers markets, roadside markets or stands, except markets that offer only uncut fresh fruit and vegetables for sale, are also included.
Yes, if they prepare or serve food in individual portions for immediate on- or off-premises consumption.
Only reusable carryout bags would be exempt. A reusable carryout bag is defined as one that is designed and manufactured for at least 125 uses, can carry at least 22 pounds over a distance of 175 feet, has stitched handles and is made of cloth, fiber, or other fabric or a recycled material such as polyethylene terephthalate (PET). It does NOT include bags made of biologically based polymers such as corn or other plant sources, except for hemp that meets the previously stated requirements.
Yes, and many large retailers already charge for bags at self-checkouts across the country. Businesses must include on receipts the type and number of bags taken and bag fee(s) paid by the customers.
A lightweight paper bag (paper lunch bag), bag for prescription medications (plastic or paper), a bag customers use inside a store to hold items such as vegetables, meats and other items, and a laundry, dry cleaning, or garment bag.
Yes, until the end of 2023. Effective January 1, 2024, retail food establishments shall not distribute an expanded polystyrene “Styrofoam” product. Establishments are allowed to use their remaining inventory after this date until that inventory is gone.
On and after January 1, 2024. Following that date, businesses can provide a recycled paper carryout bag to customers with a 10 cent per bag fee.
The bag fee can be remitted through the establishment’s Lakewood Business Pro account. The city receives 60% of the fee, and the business retains 40% of the fee for administrative costs.
Yes, a sign shall be displayed in a location inside or outside the store, which alerts customers to the carryout bag fee. Signs located in the parking lot, on store doors, at checkout, at self-checkout lanes, on carts’ advertising space (if available), or in the cart corral can be used to encourage customers to bring their own bags. Printable posters, handouts and other information are available in this online business resource center under the “Printable handouts, posters and information” bar.
Yes, a small business is classified as a store that operates solely in Colorado, has three or fewer locations in the state, and is not part of a franchise, corporation or partnership that has physical locations outside of Colorado.
Retail establishments can start remitting on April 1, 2023; however, they have until April 1, 2024, to start filing the forms. The city will make the remittance forms available April 1, 2023, which will allow businesses to remit the fees earlier and allow for proper and efficient accounting instead of having to manage 15 months for the first remittance.
Exempt retailers may choose to charge the 10-cent bag fee and keep 100% of the fees collected.
If a business collects less than $20 of bag fees in a quarter, then it retains the fees until it has collected more than $20 worth of fees. Once the business has collected more than $20 in bag fees, then 60% of the bag fees must be remitted to the local government quarterly.
Yes, the bag fee will still apply for delivery and pickup services at qualifying stores. All restaurants are exempt from the bag fee.
The bag fee is exempt from the city’s sales tax, which means businesses should not charge a sales tax on the 10 cent fee. Additionally, 40% of bag fee funds that businesses retain do not count as revenue for the purpose of calculating state sales tax.
Fast- food restaurants are not required to charge Colorado’s Carryout Bag Fee for the paper bag containing your food order. Most restaurants and other retail food establishments are exempt from the fee and are not required to collect it. If you have a concern about how a business is handling the bag fee, please use this online form to submit a report about the issue, and the city’s Finance Department will review the issue.