Sales, Use and International Tax Activity Update - January 2012

Paper or Plastic? How About Neither!

Maryland

Residents in Maryland's most populated county are getting used to a new 5-cent bag fee meant to curb pollution, encourage the use of reusable bags and boost funding for a water quality protection fund. On Sunday, January 1, 2012, Montgomery County's new bag fee, approved by county lawmakers in May 2011, went into effect.

While the District of Columbia has had a similar 5-cent bag fee for establishments selling food and alcohol for the past two years, Montgomery County's bag fee is more comprehensive and covers essentially all retail businesses. It does not, however, apply to bags for prescription drugs, newspapers, garbage, pet waste, yard waste, restaurant leftovers and good purchased at farmers markets.

Additional information can be found in the attached link

http://www.montgomerycountymd.gov/mcgtmpl.asp?url=/content/pio/Bag/index.asp

Montgomery County Code, Chapter 52, Taxation, Article XIV, Carryout Bag Tax [Sections 52-101, 52-102, 52-103, 52-104, 52-105, 52-106, and 52-107] can be found on the Montgomery County Maryland website.

California

San Jose customers will be shopping much greener as Ordinance No 28877 was adopted to ban single-use carryout bags and prohibit the free distribution of recycled paper bags.

All grocery and retail stores in San Jose can no longer provide single-use carryout bags at checkout beginning January 1, 2012. Customers will have the option to bring or purchase their own reusable bags or purchase recycled content paper bags for 10 cents each at the checkout until December 31, 2013, at which time the minimum charge will increase to 25 cents per paper bag.

Customers purchasing food with WIC and CalFresh "food stamps" may be provided a recycled content paper bag at no cost for the first two years of the ban.

Similar to Montgomery County, Maryland the ordinance would exclude plastic or paper bags that are used by customers or the store to protect or contain meat, fresh produce, food prepared at the establishment, or other goods that must be protected from moisture, damage, or contamination, and that are typically placed inside a carryout bag at the point of sale.

Restaurants, take-out food establishments, or any other businesses that receive their revenue primarily from the sale of food cooked or otherwise prepared at the establishment would be exempt from the ordinance.

Additional information can be found in the attached links:

http://www.sanjoseca.gov/

http://www.sanjoseca.gov/clerk/ORDS_RESOS/ORD_28877.pdf

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