What's happening
The bill provides a three-cent instant tax rebate per reusable bag used by customers instead of plastic carryout bags at retail stores.
Why it matters
Encourages environmentally-friendly behavior by giving a direct financial incentive (3¢ per bag) for customers who bring their own reusable bags instead of using plastic bags at retail stores.
Applies to a broad range of retail businesses, meaning the rebate could affect shopping habits at grocery stores, department stores, pharmacies, restaurants, and many other types of establishments, potentially leading to widespread reduction in plastic bag usage.
The rebate is structured so it does not decrease the amount of sales tax local governments receive, ensuring that local tax revenues remain stable even as customers claim rebates.
Defines both “plastic carryout bag” and “reusable bag” clearly, which reduces ambiguity for both retailers and consumers about when the rebate is applicable and could help standardize practices across the state.
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Who cares
Shoppers who bring reusable bags
They would receive an instant tax rebate of three cents for each qualifying reusable bag they supply in place of a store’s plastic carryout bag.
Retailers, restaurants and other covered businesses
They would have to reduce transaction taxes by three cents for each customer-supplied reusable bag that replaces a plastic carryout bag.
Local taxing jurisdictions
The bill specifies that the rebates would not reduce the amounts remitted to them.
Headline styles
Pay for Using Reusable Bags
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4330
2017-2018 Regular Sessions
IN SENATE
February 9, 2017
Introduced by Sen. ALCANTARA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law and the general business law, in relation to an instant tax rebate of three cents per reusable bag furnished to replace a plastic carryout bag by a customer of a retail store
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1210 of the tax law is amended by adding a new subdivision (k) to read as follows:
(k) Notwithstanding any other provision of law to the contrary, an instant rebate of three cents from the taxes authorized under sections twelve hundred one through twelve hundred four of this article shall be issued per reusable bag, as defined in section three hundred ninetynine-eee of the general business law, furnished for the replacement of a plastic carryout bag, as defined in section three hundred ninety-nineeee of the general business law, shall be applied to any taxes to be paid on the transaction. This rebate shall not reduce the amount to be remitted to local taxing jurisdictions.
§ 2. The general business law is amended by adding a new section 399- eee to read as follows:
§ 399-eee. Rebate on sales tax for use of reusable carry out merchandise bags. 1. Definitions. For purposes of this section the following terms shall have the following meanings:
(a) "Plastic carryout bag" means a plastic carryout bag provided by a store to a customer at the point of sale.
(b) "Retail store" means any business establishment, including, but not limited to, a grocery store, convenience store, dairy products store, produce market, department store, general merchandise store, clothing store, hardware store, pharmacy, drug store, hotel, restaurant, soda fountain, gasoline station, or any other similar mercantile estab-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09794-01-7
S. 4330 2
lishment offering goods and/or services at retail to individual consumers, and/or any other establishment which in the regular course of business sells or rents goods or services directly to the public.
(c) "Reusable bag" means:
(i) a bag made of cloth or other machine washable fabric that has handles; or
(ii) a durable plastic bag with handles that is specifically designed and manufactured for multiple reuse.
2. Reusable bag rebate. Whenever a retail store would use a plastic carryout bag but does not due to the use of a reusable bag furnished by the customer, the retail store shall, in accordance with subdivision (k) of section twelve hundred ten of the tax law, reduce any taxes administered and collected by the state tax commission on the transaction by three cents per reusable bag furnished by the customer that replaces a plastic carryout bag.
§ 3. This act shall take effect on the first day of the sales tax quarter that begins at least ninety days after the day on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law and the general business law, in relation to an instant tax rebate of three cents per reusable bag furnished to replace a plastic carryout bag by a customer of a retail store
Purpose or general idea of bill
To provide an incentive for consumers to utilize reusable bags instead of non-reusable plastic carryout bags.
Summary of specific provisions
Section 1 amends Section 1210 of the tax law by adding a new subdivision (k), which establishes an instant tax rebate of three cents for the usage of reusable bags in retail stores.
Section 2 amends the general business law by adding a new section 399. Part one of the section provides definitions. Part 2 of the section establishes the procedure for the provision of an instant tax rebate by a retail store.
Section 3 provides the effective date.
Justification
The low cost and easy disposability of plastic bags has led to a pollution problem that plagues the state. It is clear that policy must aim to reduce the usage of plastic bags. However, policies must maintain an awareness of groups with limited economic means. This act aims to achieve a reduction in plastic bag usage while avoiding harms that may result from a negative incentive. A negative incentive, like an additional tax or surcharge on those who use plastic bags, may disproportionately harm consumers with lower incomes. The tax rebate provided by this act will instead provide a positive incentive, rewarding consumers for using reusable bags.
Prior legislative history
None.
Fiscal implications
Reductions in sales tax revenue resulting from the tax rebate provided to consumers who use reusable bags.
Effective date
The first day of the sales tax quarter, that begins at least ninety days after the day on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.