Bill No.
8-11
Concerning: Taxation - Excise Tax ­
Disposable Carryout Bags
Revised: 4-12-11
Draft No. _2_
Introduced:
March 15, 2011
Enacted:
May 3, 2011
Executive: _ _ _ _ _ _ _ __
Effective:
January 1,2012
Sunset Date: -!..!,No!::,!n..:.::e'--_ _ _ _ __
Ch. _ _, Laws of lIIIont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
ACT to:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
impose an excise
tax
on certain carryout bags provided to customers at certain retail
establishments;
require certain retail establishments to collect the carryout bag tax and remit the
tax
to the County;
,authorize payment of a fee to compensate certain retail establishments for collecting
the carryout bag
tax;
allow certain exemptions from the carryout bag tax;
authorize imposition of an estimated carryout bag tax under certain circumstances;
authorize the imposition of interest and penalties for failure to collect and remit the
carryout bag
tax;
and
generally amend County law to provide for an excise tax on certain bags,
By adding
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]]
Boldface
Underlining
[Single boldface brackets]
QQ.u.ble underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deleted from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL NO. 8-11
1
Sec. 1. Article XIV is added to Chapter 52 as follows:
Article XIV. Carryout Bag Tax.
52-101.
Definitions.
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In this Article, the following terms have the following meanings:
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Director
means the
Director
ofthe Department of Finance.
Carryout bag
means
f!
paper or plastic bag provided by
f!
retail
establishment
to
f!
customer at the point of sale, pickup, or delivery to
9EI!Y
purchased items.
Carryout bag
does not include:
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ill
ill
ill
f!
bag provided by
f!
pharmacist that contains
f!
prescription drug;
any newspaper bag or bag intended for initial use as
f!
dry cleaning.
garbage, pet waste, or yard waste bag;
f!
bag provided at the point of sale [[at
f!
stand]] at
f!
seasonal event, such
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as
f!
farmers market. street fair. or yard sale. or by an
occasional
retailer~
[[or]]
ill
f!
paper bag that
f!
restaurant
gives
f!
customer to take prepared or
leftover food or drink from the
restaurant:
or
ill
a bag used to package a bulk item or to contain or wrap a perishable
item.
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Occasional retailer
means a
retail establishment
that engages in the retail
sale of goods no more than 6 days in any calendar year.
Restaurant
means any lunchroom, cafe, or other establishment located in
f!
permanent building for the accommodation of the public, equipped with
f!
kitchen containing facilities and utensils for preparing and serving meals to the
public, and outfitted with
f!
public dining area.
A restaurant
does not include
any area of
f!
supermarket, department store, or other
retail establishment
beyond the kitchen and public dining area.
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BILL
No. 8-11
27
Retail establishment
means any person engaged in the retail sale of goods.
Retail establishment
includes any supermarket, convenience store, shop,
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service station, or restaurant, and any other sales outlet where
f!
customer can
buy goods.
52-102.
Tax imposed.
W
A tax in the amount of
2.
cents is levied and imposed on each customer
for each
carryout bag
that
f!
retail establishment
provides to the
customer.
(hl
Each
retail establishment
that provides
f!
carryout bag
to
f!
customer
must collect the amount of the tax imposed under subsection
W
when
the customer makes any payment for goods in person, through the
Internet,
Qy
telephone,
Qy
facsimile, or
Qy
any other means. The
retail
establishment
must hold the taxes required to be collected under this
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Section in trust for the County until remitted as required under Section
52-103.
l£}
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Each
retail establishment
may retain
1
cent from each 5-cent tax that
the
retail establishment
collects to cover the administrative expense of
collecting and remitting the tax to the County.
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@
A
retail establishment
must indicate on the customer's transaction
receipt the number of
carryout bags
that the
retail establishment
provided to the customer and the total amount of tax levied under this
Section.
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52-103.
Remittance.
W
Except as provided in subsection
ili1
on or before the 25th day of each
month, each
retail establishment
must remit the full amount of the tax
collected for all
carryout bags
provided to
f!
customer during the
previous month, less the amount retained under Section 52-102
1£1
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BILL
No. 8-11
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(Q}
A
retail establishment
is only required to remit the taxes to the
Director
when the cumulative taxes collected under Section 52-102(a)
since the previous remittance, if any, exceed $100.
W
Each remittance must be accompanied
Qy
~
report of all transactions
~
that involve bags subject to the tax. The report must be on
form
supplied
Qy
the
Director
and must contain the number of bags supplied
or provided to customers, the amount of tax required
Qy
this Section to
be collected and any other information the
Director
requires to assure
that the proper tax has been remitted to the County.
@
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ill
If the
retail establishment
does not file
deadline established under subsection
estimate the amount of tax due.
~
required report
Qy
the
the
Director
may
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U!1.
The
Director
may base the
estimate on
~
reasonable projection of bags supplied or provided
and may consider taxes reported
Qy
other
retail establishments.
.
-,,'
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ill
The
Director
may send
~
notice of the estimated tax due,
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including interest and penalty, to the
retail establishment's
last
known address. The
retail establishment
must
~
the estimated
tax, including any interest and penalty assessed
Qy
the
Director,
within 10 days after the notice is sent.
ill
ill
(g)
Each
retail establishment
must preserve for
J
years all records
necessary to determine the amount ofthe tax due under this Section.
The
Director
may inspect any records required to be kept under this
Section at any reasonable time.
The
Director
must deposit all taxes remitted under this Section into the
stormwater management fund created under Section 19-35, after
deducting the cost of administering this Article.
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52-104.
Interest and penalties.
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BILL
No. 8-11
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W
If
~
retail establishment
does not remit to the
Director
any tax owed
under Section 52-103 when due, the
retail establishment
is liable for:
ill
ill
interest on the collections at the rate of one percent per month for
each month or part of
~
month after the remittance is due; and
~
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penalty of
~
percent of the amount of the collections per month
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90
or part of
~
month after the remittance is due,
lli1
to 25 percent of
the
tax
collected.
(hl
The
Director
must collect any interest and penalty as part of the
remittance due.
52-105.
Prohibited conduct.
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A
retail establishment
must not:
W
(hl
(£}
neglect or refuse to collect or remit the tax levied under this Article;
file an incomplete, false, or fraudulent report to the
Director;
neglect or refuse to keep complete and accurate records; or
refuse to allow the
Director
to inspect and audit the
retail
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@
establishment's
records.
52-106.
Regulations.
The County Executive may adopt regulations under method
ill
to implement
this Article.
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102
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52-107.
Enforcement.
~
Any violation of this Article is
separate offense.
Class A civil violation. Each violation is
~
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A conviction under this Section does not relieve
retail
establishment
from paying
~
remittance owed to the County.
Sec. 2.
Effective Date.
This Act takes effect on January 1,2012.
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BILL NO. 8-11
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Approved:
Valerie Ervin, Presi ent, County Council
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~~2~
W..2a~/
ate
Approved:
Isiah Leggett, County Executive
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Date
This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
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