What is the difference between the current Waste Reduction Fee and the new Carryout Bag Fee and plastic bag ban?
Carbondale’s initial bag fee and plastic bag ban went into effect May 1, 2012, and only applied to grocers larger than 3,500 square feet. The initial fee was 20 cents per bag, and $100 per month was retained by the grocer. In 2022, the State of Colorado passed HB 21-1162, a statewide single-use carryout bag ban and fee that is similar to Carbondale's, but which contains differences in definitions, timing, fees and certain other requirements. Carbondale’s new regulation expands the fee to additional businesses and removes any conflicts in language between the state law and the previous ordinance.
The revised Carryout Bag Fee was approved by the Board of Trustees February 14, 2023 and applies to businesses that provide bags to customers as a regular part of their business, and are physically located within the Town of Carbondale. Restaurants that prepare or serve food in individual portions for immediate consumption that are not also a grocery store or convenience store are not included in the new Carryout Bag Fee ordinance. Temporary vendors operating within the Town, such as the Farmer’s Market, must comply with the Carryout Bag Fee and plastic bag ban.
The Carryout Bag Fee will remain at 20 cents per bag, but the business will now retain 4 cents out of the 20 cents collected per bag.
Businesses that must comply with this rule have through December 31, 2023 to use their current inventory of plastic bags. On January 1, 2024, a plastic bag ban will go into effect, and only single use carryout paper bags may be provided to the customer.
What will the Carryout Bag Fee revenues collected by the Town of Carbondale be used for?
The revenue derived from the Carryout Bag Fee is to be used for recycling, composting, or other waste diversion programs and related outreach and education activities, as well as administration and enforcement costs incurred specifically for the Carryout Bag Fee.
Which businesses must file this fee?
Businesses that provide bags to customers as a regular part of their business, and are physically located within the Town of Carbondale, must file the fee. Restaurants that prepare or serve food in individual portions for immediate consumption that are not also a grocery store or convenience store are not subject to the ordinance.
Temporary vendors operating within the Town, such as for Farmer’s Market, must comply with the Carryout Bag Fee and plastic bag ban.
How long can I use the current inventory of plastic bags on hand before I need to change to recycled paper carryout bags?
You may use plastic carryout bags through December 31, 2023. As of January 1, 2024, plastic bags are banned.
When do I need to start collecting the Carryout Bag Fee?
The State of Colorado passed House Bill 21-1162, that went into effect January 1, 2023. The first quarterly form will be required to be filed no later than July 20, and should include all carryout bag fees collected since January 1, 2023.
How much is the Carryout Bag Fee?
The fee is 20 cents for each carryout bag provided to the customer, which is required to be paid by the customer to the business.
Is the Carryout Bag Fee taxable for sales tax purposes?
The Carryout Bag Fee is specifically exempt from sales tax.
What amount of the fee is to be kept by the business who collected the fee?
Of the 20 cent per bag fee, 4 cents per bag may be kept by the business.
When is the Carryout Bag Fee due?
Returns are due on the 20th of the month following the reporting period. If the 20th falls on a holiday or a weekend, the due date is the next business day. Paper returns must be postmarked on or before the due date to be considered timely. The first filing deadline is July 20 for fees collected from January 1 – June 30, 2023.
How often do I report/remit the fee?
If $10.01 or more in fees will be collected each month, returns must be filed quarterly.
An annual filing status will be granted if monthly fee is $10 or less.
If I have no fees incurred, do I still need to file a return?
Yes, a return must always be filed even if there is no fee due. If a business makes zero sales and collects zero fees, they MUST still file a zero-fee return to avoid additional fees and penalties.
If your business no longer provides carryout bags, please contact the Finance Department through the MuniRevs system as outlined below.
What happens if I do not file on time or do not file a return?
Fees, penalties, and interest will apply. There is a $10 late filer fee, a 10% penalty will be assessed on delinquent fees, and an interest rate of 1.5% per month will also be charged.
Where do I file returns online?
File returns and remit payments conveniently online click the following link: File Sales & Lodging Tax Returns Online. For technical support contact MUNIRevs support (888) 751-1911. NOTE: The return will be ready effective April 1 and impacted businesses will receive an email shortly.
Is a postmark of the 20th acceptable as proof of the mailing date?
Yes, but be careful to make sure that the post office has the proper postmark if fees are mailed on the 20th. To avoid late fees it is best to file returns conveniently online.