Single-Use Bag Fee
Effective January 1, 2023, the State of Colorado has mandated a 10-cent fee for each disposable paper and plastic bag used at check out. See Colorado House Bill 21-1162 for details. Certain businesses must collect the Disposable Bag Fee if they provide a disposable carryout bag.
A carryout bag is furnished to a customer at a store or retail food establishment at the point of sale to transport or carry purchased items away.
- Store, meaning grocery store, supermarket, convenience store, liquor store, dry cleaner, pharmacy, drug store, clothing store, or another type of retail establishment at which carryout bags are traditionally provided to customers.
Exclusions to Collecting a Disposable Bag Fee:
- Small Store, 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
- Bags used to contain or wrap frozen foods, meat, fish, flowers, potted plants, and other items where dampness may be a problem.
- Bags used to contain loose bulk items such as fruit, vegetables, nuts, chocolate, nails, screws, etc.
- Bags used to contain unwrapped prepared foods and bakery goods.
- Bags used to protect items from damage or contamination when placed in a reusable bag.
- Bags used to contain medical prescriptions issued by a pharmacist.
How do businesses report the bag fee and related sales tax?
- Complete Disposable Bag Fee Return Form.
- 60% of the total 10-cent bag fees collected will be remitted to the Town of Berthoud, along with the completed Return Form. The vendor retains 40% of the fee.
- Reporting Period: Businesses are required to remit quarterly under the new state law. However, the bag fee may be remitted monthly if convenient for your accounting process.