One-Time Use Bag Fees - Effective January 1, 2023
Don't Forget to Bring Your Reusable Bags!
Beginning January 1, 2023, Colorado implemented a required 10-cent fee for plastic and paper carryout bags used at checkout as well as for pickup and delivery orders. This will affect large retail stores, for example, grocery stores and home improvement stores, department stores, and more. The state law does not affect small stores with three or fewer locations in Colorado.
Find additional information concerning House Bill 21-1162 on the State of Colorado General Assembly's website.
Please note that the City of Greenwood Village has exempted the 10-cent fee from our local sales tax. If you have any questions, please Email Taxpayer Services or call them at 303-486-8299.
Who is required to collect the carryout bag fee?
House Bill 21-1162 applies to:
Large retail stores, including convenience stores, liquor stores, dry cleaners, pharmacies, drug stores, clothing stores, or other types of retail establishments at which carryout bags are traditionally provided to customers. It may also include farmers' markets, roadside markets/stands, festivals, or other temporary vendors.
The law does not apply to:
Small stores that operate solely in Colorado, have three or fewer locations in the State and are not part of a franchise, corporation, or partnership that has physical locations outside of Colorado.
Retail food establishments retail operations that store, prepare or package food for human consumption or serves/otherwise provides food for human consumption to consumers directly or through a delivery service, whether such food is consumed on or off the premises or whether there is a charge for such food.
What is a carryout bag?
A carryout bag means a bag that is provided to a customer at a store (at the point of sale) for use by the customer to transport or carry purchased items.
Carryout bag does not include:
- A bag made of paper when the paper has a basis weight of thirty pounds or less.
- A bag that a pharmacy provides to a customer purchasing prescription medication.
- A laundry, dry cleaning, or garment bag.
- A bag that a customer uses inside a store to:
- Package loose or bulk items, such as fruits, vegetables, nuts, grains, candy, or greeting cards; nails, bolts, screws, or other small hardware items; live insects, fish, crustaceans, mollusks, or other small species; and bulk seed, bulk livestock feed, or bulk pet feed.
- Contain or wrap frozen foods, meat, seafood, fish, flowers, potted plants, or other items that, if they were to come in contact with other items, could dampen or contaminate the other items.
- Contain unwrapped prepared foods or bakery goods.
When is the carryout bag fee due?
While the payment of the bag fees is not required until April 1, 2024, businesses may pay the fees collected before that date.
They will be due on a quarterly basis (on the 20th day of the month following the end of the quarter). There is a link available in Xpress Bill Pay to submit the fees. Stores may pay online using their existing Tax Identification number. Additional information will be provided soon.