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Bag Fees

In 2021, the Colorado General Assembly enacted House Bill 21-112. Between January 1, 2023, and January 1, 2024, a store may furnish a recycled paper carryout bag or a single-use plastic carryout bag to a customer at the point of sale if the customer pays a fee or 10 cents per bag or a higher fee adopted by the municipality or county in which the store is located. Beginning January 1, 2024, the act prohibits stores and retail food establishments from providing single-use plastic carryout bags to customers. A store may furnish only a recycled paper carryout bag to a customer at the point of sale at a fee of 10 cents per bag or a higher fee imposed by the municipality or county in which the store is located. 

The carryout bag fee does not apply to a customer that provides evidence to the store that the customer is a participant in a federal or state food assistance program. 

The carryout bag fee is not collected or administered by the Colorado Department of Revenue. Section 25-17-505(3)(d), C.R.S., requires that stores remit the carryout bag fee to the finance department or division of equivalent agency of the municipality within which the store is located. If the store is not located within a municipality, the carryout bag fee must be remitted to the finance department or division or equivalent agency of the county in which the store is located. 

Please review the full text of HB-21-1162 for a complete discussion of the requirements, restrictions and penalties imposed under the act.