THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY LEACH, KASUNIC AND FERLO, FEBRUARY 18, 2011

REFERRED TO FINANCE, FEBRUARY 18, 2011  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," providing for a plastic bag tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971, is amended by adding an article to

read:

ARTICLE II-B

PLASTIC BAG TAX

Section 201-B.  Scope.

This article provides for a tax on the provision of plastic

bags at the point of sale of consumer goods.

Section 202-B.  Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Consumer good."  A good that is sold at retail to a

purchaser for personal consumption or household use.

"Department."  The Department of Revenue of the Commonwealth.

"Plastic bag."  A bag or pouch of flexible packaging made of

thin, flexible, plastic film that is designed and intended to be

used for the carrying of goods purchased at a retail

establishment and that is provided to the consumer by the retail

establishment at the point of sale. The term does not include:

(1)  A reusable bag or pouch specifically designed for

multiple use and that is made of cloth, fabric or durable

plastic of at least 2.25 mils.

(2)  A bag or pouch to carry or bundle produce for

delivery to the point of sale at a retail establishment.

(3)  A bag or pouch made of compostable material that

meets the ASTM D6400 standard for compostable plastic.

"Retail establishment."  An establishment that sells or

offers to sell at retail consumer goods to the public and that

has gross sales of consumer goods in excess of $1,000,000 during

the previous tax year.

Section 203-B.  Imposition of tax.

There is hereby imposed on each plastic bag supplied by a

retail establishment to a purchaser of consumer goods at the

point of sale a tax of two cents.

Section 204-B.  Collection and enforcement.

The tax imposed in this article shall be collected by the

department in the same manner as the sales and use tax imposed

under Article II, and the provisions of Article II for the

enforcement of the sales and use tax shall apply to the tax

imposed under this article.

Section 205-B.  Deposit of tax proceeds.

The tax collected under this article shall be deposited into

a restricted account in the General Fund, which account shall be

used as follows:

(1)  Fifty percent of the tax collected from a retail

establishment shall be paid as a grant to the retail

establishment, provided that the retail establishment enters

into an agreement with the department that the grant money

will be used for the improvement of recycling practices,

education and compliance with the provisions of this article

by the retail establishment.

(2)  The balance of the account shall be used by the

Commonwealth for recycling programs authorized by law.

Section 206-B.  Regulations.

The department shall promulgate regulations necessary to

administer this article.

Section 2.  This act shall take effect in 60 days.