HF3322 Summary

• Imposes a five cents per bag excise tax on disposable carryout bags sold by retailers to consumers, payable by the consumer at time of purchase.

• Retailers must obtain a disposable bag tax permit from the commissioner and include their identification number on invoices where the tax is collected.

• One cent of the five-cent tax remains with the retailer; retailers offering a carryout bag credit program may retain an additional one cent if they credit consumers at least five cents per bag and advertise the program prominently at checkout.

• Taxes imposed under the new chapter 297J must be reported to the commissioner in prescribed form with written declaration subject to criminal penalties for false returns and confession of judgment for unpaid amounts.

• Effective date is the day following final enactment and applies to disposable bags transferred after September 30, 2010.