Carryout Bag Fee

About the Carryout Bag Fee

For businesses located in unincorporated Jefferson County

House Bill 21-1162 passed in the November 2022 election. The county is in the process of setting up the system for businesses to remit six cents for every plastic or paper bag sold. We will publish on this webpage the process and details needed once they are final. The first due date is April 1. Please continue to check this webpage for more details. We will also be sending out communications through our listserv distribution lists and posting information on our Facebook page.

Details below are from the State of Colorado

In 2021, the Colorado General Assembly enacted House Bill 21-1162. Beginning January 1, 2024, the act prohibits stores and retail food establishments from providing single-use plastic carryout bags to customers. Certain retail food establishments, and small stores that operate solely in Colorado and have three or fewer locations, may provide single-use plastic carryout bags. 

Between January 1, 2023, and January 1, 2024, a store may furnish a recycled paper carryout bag or a single-use plastic carryout bag to a customer at the point of sale if the customer pays a fee of 10 cents per bag or a higher fee adopted by the municipality or county in which the store is located. On and after January 1, 2024, a store may furnish only a recycled paper carryout bag to a customer at the point of sale at a fee of 10 cents per bag or a higher fee imposed by the municipality or county in which the store is located.

A store is required to remit, on a quarterly basis beginning April 1, 2024, 60 percent of the carryout bag fee revenues to the municipality or county within which the store is located and may retain the remaining 40 percent of the carryout bag fee revenues. 

The carryout bag fee does not apply to a customer who provides evidence to the store that the customer is a participant in a federal or state food assistance program.

The act does not apply to materials used in the packaging of pharmaceutical drugs, medical devices, or dietary supplements or any equipment or materials used to manufacture pharmaceutical drugs, medical devices, or dietary supplements.

Please review the full text of HB21-1162 for a complete discussion of the requirements, restrictions, and penalties imposed under the act.

Frequently Asked Questions

1. Is the carryout bag fee collected or administered by the Colorado Department of Revenue?

No, the carryout bag fee is not collected or administered by the Colorado Department of Revenue. Section 25-17-505(3)(d), C.R.S., requires that stores remit the carryout bag fee to the finance department or division or equivalent agency of the municipality within which the store is located. If the store is not located within a municipality, the carryout bag fee must be remitted to the finance department or division or equivalent agency of the county in which the store is located.

2. Can I pay the carryout bag fee through the SUTS system?

At this time, the carryout bag fee cannot be paid through the Sale and Use Tax System (SUTS). Jefferson County is in the process of setting up the system and will post the process and details on this webpage.

3. How do I pay the fee? Who should the check be payable to? Am I required to submit any forms or documentation with the fee?

Section 25-17-505(3)(d), C.R.S., requires that stores remit the carryout bag fee to the finance department or division or equivalent agency of the municipality within which the store is located. If the store is not located within a municipality, the carryout bag fee must be remitted to the finance department or division or equivalent agency of the county in which the store is located. Contact these agencies for more information on how to remit the fee.

4. Is the fee subject to sales tax?

The fee is not subject to state and state-administered local sales tax. The Colorado Department of Revenue does not collect sales and use taxes for certain home-rule municipalities. You will need to contact these self-collecting home-rule municipalities directly to determine whether these fees are subject to their local sales tax. For a complete listing of jurisdictions, including state-administered jurisdictions and self-collecting home-rule municipalities, please refer to Department Publication DR 1002.