THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY LEACH, KASUNIC AND FERLO, FEBRUARY 18, 2011
REFERRED TO FINANCE, FEBRUARY 18, 2011
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
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.