HB 18-1054 Summary

• Imposes a 25-cent tax on plastic shopping bags provided by stores, contingent on voter approval at the November 2018 election, with tax collection beginning January 1, 2019.

• Applies to stores that sell tangible personal property or food, occupy over 2,000 square feet, or are part of a chain with 20+ national locations; exempts customers enrolled in federal supplemental nutrition assistance programs.

• Tax is flat rate per transaction regardless of bag quantity, separately identified on receipts, with stores retaining 1% of collected taxes to cover collection and remittance expenses.

• Revenue is deposited in the general fund via the old age pension fund; the Department of Revenue's administrative expenses are transferred to a new plastic shopping bag tax administration cash fund, with remainder going to the housing development grant fund for affordable housing purposes.

• Entire tax article is repealed if voters reject the measure at the November 2018 election; tax article is also repealed if voters approve it following the election.