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7 LONG TITLE
8 General Description:
9 This bill creates the Retail Bag Impact Reduction Program.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ creates the Retail Bag Impact Reduction Program;
14 ▸ imposes a fee on single-use retail bags;
15 ▸ creates the Retail Bag Impact Reduction Fund;
16 ▸ provides for allocation of the funds to achieve the purposes of the program;
17 ▸ provides guidance for the administration of the fund;
18 ▸ requires a report; and
19 ▸ makes technical changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides a special effective date.
24 Utah Code Sections Affected:
25 AMENDS:
26 59-1-306, as enacted by Laws of Utah 2011, Chapter 309
27 59-12-108, as last amended by Laws of Utah 2013, Chapter 50
28 ENACTS:
29 19-6-1301, Utah Code Annotated 1953
30 19-6-1302, Utah Code Annotated 1953
31 19-6-1303, Utah Code Annotated 1953
32 19-6-1304, Utah Code Annotated 1953
33 19-6-1305, Utah Code Annotated 1953
34 19-6-1306, Utah Code Annotated 1953
35 19-6-1307, Utah Code Annotated 1953
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37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 19-6-1301 is enacted to read:
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40 19-6-1301. Title.
41 This part is known as the "Retail Bag Impact Reduction Program."
42 Section 2. Section 19-6-1302 is enacted to read:
43 19-6-1302. Legislative findings.
44 (1) The Legislature finds that the disposal of single-use retail bags is a statewide
45 concern and that reducing the use, while promoting the responsible disposal, of single-use retail
46 bags will provide valuable health and environmental benefits.
47 (2) The Legislature further finds that a reduction in the use of single-use retail bags will
48 reduce the impact on landfills while promoting the use of more sustainable, reusable bags.
49 (3) It is the intent of the Legislature in adopting this part to encourage the development
50 of recycling programs and education regarding the impacts of, and alternatives to, single-use
51 retail bags.
52 Section 3. Section 19-6-1303 is enacted to read:
53 19-6-1303. Definitions.
54 As used in this chapter:
55 (1) "Commission" means the State Tax Commission.
56 (2) "Retail bag" means a bag provided by a retail business to a customer, typically at
57 the point of sale, for the purpose of transporting purchases or merchandise.
58 (3) "Retail business" means any commercial enterprise that provides retail bags to its
59 customers.
60 (4) "Reusable bag" means a bag designed for or used multiple times that is constructed
61 using cloth, fabric, or other durable materials, whether woven or non-woven.
62 (5) (a) "Single-use retail bag" means a retail bag, whether paper or plastic, designed for
63 one use before disposal.
64 (b) "Single-use retail bag" does not include:
65 (i) laundry dry cleaning bags, door-hanger bags, newspaper bags, or packages of
66 multiple bags intended for use as garbage, pet waste, or yard waste bags;
67 (ii) bags provided by pharmacists or veterinarians to contain prescription drugs or other
68 medical necessities;
69 (iii) bags used by a consumer inside a retail business to:
70 (A) contain bulk items such as produce, nuts, grains, candy, or small hardware items;
71 (B) contain or wrap frozen foods, meat, or fish;
72 (C) contain or wrap flowers, potted plants, or other items to prevent moisture damage
73 to other purchases; or
74 (D) contain unwrapped prepared foods or bakery goods;
75 (iv) small bags used in restaurants, not intended for carry out, to contain or deliver
76 prepared foods;
77 (v) small bags used in retail businesses, not issued at the point of sale, used to contain
78 small items;
79 (vi) bags used by a non-profit entity or other charitable organization to collect or
80 distribute food, grocery products, clothing, or other household items; or
81 (vii) bags used to transport chemicals, including pesticides, drain-cleaning chemicals,
82 or other caustic chemicals sold by a retail business.
83 Section 4. Section 19-6-1304 is enacted to read:
84 19-6-1304. Single-use retail bag fee.
85 (1) (a) A fee is imposed upon each single-use retail bag provided by a retail business to
86 a customer or patron.
87 (b) The customer or patron shall pay the fee to the retail business at the time of
88 purchase.
89 (2) The fee for each single-use retail bag is 10 cents.
90 (3) (a) Except as provided in Subsection (3)(b), a restaurant is not required to charge a
91 fee for a paper single-use retail bag used to protect or transport prepared foods, beverages, or
92 other loose items associated with the sale of prepared foods.
93 (b) A restaurant may irrevocably notify the commission of the restaurant's intent to
94 charge a fee for a paper single-use retail bag used to protect or transport prepared foods,
95 beverages, or other loose items associated with the sale of prepared foods.
96 (4) A unit of local government may not impose a similar or additional fee on single-use
97 retail bags.
98 Section 5. Section 19-6-1305 is enacted to read:
99 19-6-1305. Special revenue fund -- Creation -- Deposits.
100 (1) There is created an expendable special revenue fund called the "Retail Bag Impact
101 Reduction Fund."
102 (2) The fund shall consist of the proceeds of the fee imposed under Section 19-6-1304.
103 (3) (a) After a retail business located in an unincorporated area of a county retains four
104 cents of the fee described in Subsection 19-6-1306(1)(b), the commission shall distribute the
105 remaining six cents generated by the fee as follows:
106 (i) four cents to the county in which the retail business is located; and
107 (ii) two cents to the Department of Environmental Quality.
108 (b) After a retail business located in an incorporated municipality retains four cents of
109 the fee described in Subsection 19-6-1306(1)(b), the commission shall distribute the remaining
110 six cents generated by the fee as follows:
111 (i) two cents to the incorporated municipality in which the retail business is located;
112 (ii) two cents to the county in which the retail business is located; and
113 (iii) two cents to the Department of Environmental Quality.
114 (c) (i) Local government units, including special service districts, may enter into
115 interlocal agreements that provide for alternative distribution of the single-use retail bag fee
116 between local government units in accordance with Title 11, Chapter 13, Interlocal
117 Cooperation Act.
118 (ii) Regardless of an interlocal agreement described in Subsection (3)(c)(i), the
119 commission shall distribute the proceeds of the single-use retail bag fee as provided in
120 Subsections (3)(a) and (b), and the local government units may redistribute the proceeds of the
121 single-use retail bag fee in accordance with the interlocal agreement.
122 (4) Except as provided in Subsection (5), counties, municipalities, and the Department
123 of Environmental Quality may only use proceeds of the single-use retail bag fee for:
124 (a) promoting the use of reusable bags or other sustainable alternatives to replace
125 single-use retail bags;
126 (b) increasing awareness of environmental impacts of single-use retail bags;
127 (c) providing access to recycling bins and facilities in retail businesses and in areas of
128 the community having limited access to recycling;
129 (d) developing and implementing strategies and practices to prevent and remediate
130 litter;
131 (e) educating the public about materials that are difficult to recycle and hazardous to
132 the environment;
133 (f) promoting and facilitating recycling; and
134 (g) encouraging environmental sustainability.
135 (5) The Department of Environmental Quality may use proceeds of the single-use retail
136 bag fee to pay for the Department of Environmental Quality's administration costs related to the
137 program.
138 Section 6. Section 19-6-1306 is enacted to read:
139 19-6-1306. Payment of the single-use retail bag fee -- Administrative charge.
140 (1) (a) Except as provided in Subsection (1)(b), a retail business shall remit to the
141 commission the single-use retail bag fee collected from the customer:
142 (i) monthly, on or before the last day of the month immediately following the last day
143 of the previous month if:
144 (A) the retail business is required to file a sales and use tax return with the commission
145 monthly under Section 59-12-108; or
146 (B) the retail business is not required to file a sales and use tax return under Title 59,
147 Chapter 12, Sales and Use Tax Act; or
148 (ii) quarterly, on or before the last day of the month immediately following the last day
149 of the previous quarter, if the retail business is required to file a sales and use tax return with
150 the commission quarterly under Section 59-12-108.
151 (b) A retail business may retain four cents of the single-use retail bag fee collected by
152 the retail business under Section 19-6-1304.
153 (2) The payment shall be accompanied by a form prescribed by the commission.
154 (3) (a) The commission shall transfer proceeds of the fee to the fund for payment to
155 each recipient described in Section 19-6-1305.
156 (b) (i) The commission shall retain and deposit an administrative charge in accordance
157 with Section 59-1-306 from the revenues the commission collects from a fee under Section
158 19-6-1304.
159 (ii) The commission shall retain and deposit the administrative charge described in
160 Subsection (3)(b)(i) solely from the two cents portion of the fee allocated to the Department of
161 Environmental Quality in Subsections 19-6-1305(3)(a)(ii) and 19-6-1305(3)(b)(iii).
162 (4) (a) The commission shall administer, collect, and enforce the fee authorized under
163 this part in accordance with the same procedures used in the administration, collection, and
164 enforcement of the state sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act,
165 and Title 59, Chapter 1, General Taxation Policies.
166 (b) A retail business may use the retail business's portion of the single-use retail bag
167 fee collected and retained under this part for the cost incurred by the retail business in
168 collecting the fee and administering the program.
169 (c) The exemptions described in Section 59-12-104 do not apply to this part.
170 Section 7. Section 19-6-1307 is enacted to read:
171 19-6-1307. Reporting.
172 Before December 1, 2017, the commission shall report to the Business and Labor
173 Interim Committee data associated with the program, including the amount of money collected
174 and the number of retail bags for which the fee was imposed.
175 Section 8. Section 59-1-306 is amended to read:
176 59-1-306. Definition -- State Tax Commission Administrative Charge Account --
177 Amount of administrative charge -- Deposit of revenues into the restricted account --
178 Interest deposited into General Fund -- Expenditure of money deposited into the
179 restricted account.
180 (1) As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge
181 the commission administers under:
182 [
183 [
184 [
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186 (e) Section 19-6-1304;
187 [
188 Tax Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act;
189 [
190 [
191 [
192 [
193 (2) There is created a restricted account within the General Fund known as the "State
194 Tax Commission Administrative Charge Account."
195 (3) Subject to the other provisions of this section, the restricted account shall consist of
196 administrative charges the commission retains and deposits in accordance with this section.
197 (4) For purposes of this section, the administrative charge is a percentage of revenues
198 the commission collects from each qualifying tax, fee, or charge of not to exceed the lesser of:
199 (a) 1.5%; or
200 (b) an equal percentage of revenues the commission collects from each qualifying tax,
201 fee, or charge sufficient to cover the cost to the commission of administering the qualifying
202 taxes, fees, or charges.
203 (5) The commission shall deposit an administrative charge into the restricted account.
204 (6) Interest earned on the restricted account shall be deposited into the General Fund.
205 (7) The commission shall expend money appropriated by the Legislature to the
206 commission from the restricted account to administer qualifying taxes, fees, or charges.
207 Section 9. Section 59-12-108 is amended to read:
208 59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
209 Certain amounts allocated to local taxing jurisdictions.
210 (1) (a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this
211 chapter of $50,000 or more for the previous calendar year shall:
212 (i) file a return with the commission:
213 (A) monthly on or before the last day of the month immediately following the month
214 for which the seller collects a tax under this chapter; and
215 (B) for the month for which the seller collects a tax under this chapter; and
216 (ii) except as provided in Subsection (1)(b), remit with the return required by
217 Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
218 fee, or charge described in Subsection (1)(c):
219 (A) if that seller's tax liability under this chapter for the previous calendar year is less
220 than $96,000, by any method permitted by the commission; or
221 (B) if that seller's tax liability under this chapter for the previous calendar year is
222 $96,000 or more, by electronic funds transfer.
223 (b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
224 the amount the seller is required to remit to the commission for each tax, fee, or charge
225 described in Subsection (1)(c) if that seller:
226 (i) is required by Section 59-12-107 to file the return electronically; or
227 (ii) (A) is required to collect and remit a tax under Section 59-12-107; and
228 (B) files a simplified electronic return.
229 (c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
230 (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
231 (ii) a fee under Section 19-6-714;
232 (iii) a fee under Section 19-6-805;
233 (iv) a fee under Section 19-6-1304;
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238 (d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
239 Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
240 for making same-day payments other than by electronic funds transfer if making payments by
241 electronic funds transfer fails.
242 (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
243 commission shall establish by rule procedures and requirements for determining the amount a
244 seller is required to remit to the commission under this Subsection (1).
245 (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
246 seller described in Subsection (4) may retain each month the amount allowed by this
247 Subsection (2).
248 (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
249 each month 1.31% of any amounts the seller is required to remit to the commission:
250 (i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax
251 and a local tax imposed in accordance with the following, for the month for which the seller is
252 filing a return in accordance with Subsection (1):
253 (A) Subsection 59-12-103(2)(a);
254 (B) Subsection 59-12-103(2)(b); and
255 (C) Subsection 59-12-103(2)(d); and
256 (ii) for an agreement sales and use tax.
257 (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
258 retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
259 in Subsection 59-12-103(1) that is subject to the state tax and the local tax imposed in
260 accordance with Subsection 59-12-103(2)(c).
261 (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
262 equal to the sum of:
263 (A) 1.31% of any amounts the seller is required to remit to the commission for:
264 (I) the state tax and the local tax imposed in accordance with Subsection
265 59-12-103(2)(c);
266 (II) the month for which the seller is filing a return in accordance with Subsection (1);
267 and
268 (III) an agreement sales and use tax; and
269 (B) 1.31% of the difference between:
270 (I) the amounts the seller would have been required to remit to the commission:
271 (Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had been subject
272 to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(a);
273 (Bb) for the month for which the seller is filing a return in accordance with Subsection
274 (1); and
275 (Cc) for an agreement sales and use tax; and
276 (II) the amounts the seller is required to remit to the commission for:
277 (Aa) the state tax and the local tax imposed in accordance with Subsection
278 59-12-103(2)(c);
279 (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
280 and
281 (Cc) an agreement sales and use tax.
282 (d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
283 each month 1% of any amounts the seller is required to remit to the commission:
284 (i) for the month for which the seller is filing a return in accordance with Subsection
285 (1); and
286 (ii) under:
287 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
288 (B) Subsection 59-12-603(1)(a)(i)(A); or
289 (C) Subsection 59-12-603(1)(a)(i)(B).
290 (3) A state government entity that is required to remit taxes monthly in accordance
291 with Subsection (1) may not retain any amount under Subsection (2).
292 (4) A seller that has a tax liability under this chapter for the previous calendar year of
293 less than $50,000 may:
294 (a) voluntarily meet the requirements of Subsection (1); and
295 (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
296 amounts allowed by Subsection (2).
297 (5) (a) Subject to Subsections (5)(b) through (d), a seller that voluntarily collects and
298 remits a tax in accordance with Subsection 59-12-107(2)(c)(i) may retain an amount equal to
299 18% of any amounts the seller would otherwise remit to the commission:
300 (i) if the seller obtains a license under Section 59-12-106 for the first time on or after
301 January 1, 2014; and
302 (ii) for:
303 (A) an agreement sales and use tax; and
304 (B) the time period for which the seller files a return in accordance with this section.
305 (b) If a seller retains an amount under this Subsection (5), the seller may not retain any
306 other amount under this section.
307 (c) If a seller retains an amount under this Subsection (5), the commission may require
308 the seller to file a return by:
309 (i) electronic means; or
310 (ii) a means other than electronic means.
311 (d) A seller may not retain an amount under this Subsection (5) if the seller is required
312 to collect or remit a tax under this section in accordance with Section 59-12-103.1.
313 (6) Penalties for late payment shall be as provided in Section 59-1-401.
314 (7) (a) Except as provided in Subsection (7)(c), for any amounts required to be remitted
315 to the commission under this part, the commission shall each month calculate an amount equal
316 to the difference between:
317 (i) the total amount retained for that month by all sellers had the percentages listed
318 under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
319 (ii) the total amount retained for that month by all sellers at the percentages listed
320 under Subsections (2)(b) and (2)(c)(ii).
321 (b) The commission shall each month allocate the amount calculated under Subsection
322 (7)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
323 tax that the commission distributes to each county, city, and town for that month compared to
324 the total agreement sales and use tax that the commission distributes for that month to all
325 counties, cities, and towns.
326 (c) The amount the commission calculates under Subsection (7)(a) may not include an
327 amount collected from a tax that:
328 (i) the state imposes within a county, city, or town, including the unincorporated area
329 of a county; and
330 (ii) is not imposed within the entire state.
331 Section 10. Effective date.
332 This bill takes effect on January 1, 2017.