PRINTER'S NO.  599

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

590

Session of

2011

  

  

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

  

  

REFERRED TO FINANCE, FEBRUARY 18, 2011  

  

  

  

AN ACT

  

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

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act relating to tax reform and State taxation by codifying

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and enumerating certain subjects of taxation and imposing

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taxes thereon; providing procedures for the payment,

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collection, administration and enforcement thereof; providing

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for tax credits in certain cases; conferring powers and

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imposing duties upon the Department of Revenue, certain

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employers, fiduciaries, individuals, persons, corporations

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and other entities; prescribing crimes, offenses and

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penalties," providing for a plastic bag tax.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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

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

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read:

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ARTICLE II-B

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PLASTIC BAG TAX

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Section 201-B.  Scope.

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This article provides for a tax on the provision of plastic

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bags at the point of sale of consumer goods.

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Section 202-B.  Definitions.

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The following words and phrases when used in this article

 


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

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context clearly indicates otherwise:

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

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purchaser for personal consumption or household use.

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

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

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

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used for the carrying of goods purchased at a retail

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establishment and that is provided to the consumer by the retail

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

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(1)  A reusable bag or pouch specifically designed for

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

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plastic of at least 2.25 mils.

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

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delivery to the point of sale at a retail establishment.

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

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meets the ASTM D6400 standard for compostable plastic.

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"Retail establishment."  An establishment that sells or

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

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

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the previous tax year.

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Section 203-B.  Imposition of tax.

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There is hereby imposed on each plastic bag supplied by a

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retail establishment to a purchaser of consumer goods at the

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point of sale a tax of two cents.

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Section 204-B.  Collection and enforcement.

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The tax imposed in this article shall be collected by the

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

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

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

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imposed under this article.

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Section 205-B.  Deposit of tax proceeds.

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The tax collected under this article shall be deposited into

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

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used as follows:

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

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establishment shall be paid as a grant to the retail

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establishment, provided that the retail establishment enters

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into an agreement with the department that the grant money

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will be used for the improvement of recycling practices,

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education and compliance with the provisions of this article

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by the retail establishment.

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

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Commonwealth for recycling programs authorized by law.

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Section 206-B.  Regulations.

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The department shall promulgate regulations necessary to

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administer this article.

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

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