Imposes a fee on the use of plastic carryout bags

*A fee of five cents for each plastic carryout bag provided by a store to a customer.

*A plastic carryout bag as it is used in this bill is defined to be one that is less than 2.25 mils thick.

*If the customer is given a sales slip, invoice, receipt or other statement or memorandum of the price paid, the number of plastic carryout bags provided and the total fee charged shall be shown separately.

*The store shall pay to the state commissioner of taxation and finance the sum collected from imposing the fee.

Chapter 5 of title 20 of the administrative code of the city of New York is amended by adding a new subchapter 16 requiring:

*Stores shall make readily available to any customer or prospective customer information regarding the fee on plastic carryout bags.

*Any store that violates this bill shall be liable for a civil penalty recoverable in the amount of three hundred dollars per day for each day that the store fails to comply with the requirements of any such provision.

The tax law is amended by adding a new section 1212-B requiring:

*A fee of five cents for each plastic carryout bag shall apply to cities with a population of one million or more.

*The following terms are defined within the bill; "customer," "manufacturer," "plastic carryout bag," "reusable bag" and "store."

*The payment of the fee on plastic carryout bags shall not be subject to taxation.

*Exempts certain transactions from the payment of the fee.

Section 1250 of the tax law as amended by chapter 169 of the laws of 1970 is amended to include the provisions of this bill.

Justification

The Wall Street Journal estimates that the United States goes through 100 billion plastic bags annually. The result is a cost of $4 billion to retailers and irreversible environmental damage. New Yorkers alone dispose of approximately 5.2 billion plastic bags each year.

In New York City, and throughout the entire world, plastic bags are one of the most visible forms of litter. It is nearly impossible to look at a tree in New York City without seeing a plastic bag stuck in the branches. These plastic bags aren't going anywhere, in fact they are estimated to take 1,000 years or more to degrade. In addition, plastic bags increase our dependence on oil, which is required to manufacture plastic bags.

A tax of 22 cents was imposed by Ireland, which resulted in a 90% reduction in plastic bag waste within one year. Likewise, Toronto and Seattle plan to institute similar measures. New York is a global icon, and by imposing a fee on carryout plastic bags we will be sending a message to the rest of the world that we are prepared to combat pollution head on.

This legislation is not designed as a nuisance fee, rather the proposed fee is intended to reduce waste and litter throughout New York City and encourage the use of reusable bags. By imposing a modest fee of 5 cents, consumers will think twice about whether a carryout plastic bag is necessary. This legislation will have a real effect of protecting the environment for future generations. To assist consumers with the transition away from plastic carryout bags, New York City has agreed to provide extensive outreach throughout the City and provide reusable bags at an affordable price. Additionally, reducing the amount of carryout plastic bags used by consumers will actually result in savings for retailers who typically supply plastic bags free of charge.

Prior legislative history

This is a new bill.

Fiscal implications

New York City anticipates the fee will generate $100 million in revenue in FY 2010 and $160 million in 2011 before a greater reduction in plastic bag use occurs.

Effective date

This act shall take effect on the first day of. the first sales tax quarterly period that begins on March first, June first, September first or December first at least ninety days after the day on which this act shall have become law.