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:
May
11, 2011
Effective:
January 1,
2012
Sunset Date: _N:..:.o::<.:n.:..:::e:--_____- -
Ch.
_6_,
Laws of Mont. Co.
2011
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request ofthe 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 ofan 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]
Double underlining
[[Double boldface bracketsD
* ., *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law wzqffected 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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3
4
In this Article, the following terms have the following meanings:
5
6
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9
Director
means the
Director
of the Department of Finance.
Carryout bag
means
f!
paper or plastic bag provided
Qy
f!
retail
establishment
to
f!
customer at the point of sale, pickup, or delivery to
.9..illIY
purchased items.
Carryout bag
does not include:
10
11
12
ill
ill
ill
f!
bag provided
Qy
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
13
14
as
f!
farmers market. street fair, or yard sale, or by an
occasional
retailer;
[[Q!]]
15
16
ill
ill
f!
paper bag that
£!
restaurant
gives
f!
customer to take prepared
leftover food or drink from the
restaurant:
or
a bag used to package a bulk item or to contain or wrap a perishable
item.
17
18
19
20
Occasional retailer
means a
retail establishment
that engages in the retail
sale of goods no more than 6 days in any calendar year.
21
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
£!
supermarket, department store, or other
retail establishment
beyond the kitchen and public dining area.
22
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BILL
No.
8-11
27
28
Retail establishment
means any person engaged in the retail sale of goods.
Retail establishment
includes any supermarket, convenience store, shop,
service station, or restaurant, and any other sales outlet where
buy goods.
52-102.
Tax imposed.
A tax in the amount of
~
cents is levied and imposed on each customer
for each
carryont bag
that
customer.
~
~
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customer can
ill
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35
retail establishment
provides to the
Oil
Each
retail establishment
that provides
~
carryont bag
to
~
customer
36
37
must collect the amount of the tax imposed under subsection
ill
when
the customer makes any payment for goods in person, through the
Internet,
by
telephone,
by
facsimile, or
by
any other means. The
retail
establishment
must hold the taxes required to be collected under this
Section in trust for the County until remitted as required under Section
52-103.
(£)
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
carryont bags
that the
retail establishment
provided to the customer and the total amount of tax levied under this
Section.
48
49
50
52-103.
Remittance.
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
carryont bags
provided to
~
ill
51
52
53
customer during the
previous month, less the amount retained under Section 52-102
1.fl
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BILL
No.
8-11
54
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57
(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.
(£)
Each remittance must be accompanied
Qy
f!
report of all transactions
that involve bags subject to the tax. The report must be on
f!
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.
@
58
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60
61
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63
ill
If the
retail establishment
does not file
f!
required report
Qy
the
deadline established under subsection
@1
the
Director
may
estimate the amount of tax due.
The
Director
may base the
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estimate on
f!
reasonable projection of bags supplied or provided
and may consider taxes reported
Qy
other
retail establishments.
68
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70
71
ill
The
Director
may send
f!
notice of the estimated tax due,
including interest and penalty, to the
retail establishment's
last
known address. The
retail establishment
must
Pf!Y
the estimated
tax, including any interest and penalty assessed
Qy
the
Director,
within 10 days after the notice is sent.
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73
W
Each
retail establishment
must preserve for
;2.
years all records
necessary to determine the amount of the tax due under this Section.
74
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78
ill
(g}
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.
79
80
52-104.
Interest and penalties.
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BILL NO. 8-11
81
82
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:
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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
£!
penalty of.2. percent of the amount of the collections per month
85
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or part of
£!
month after the remittance is due,
1m
to 25 percent of
the tax collected.
@
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The
Director
must collect any interest and penalty as part of the
remittance due.
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52-105.
Prohibited conduct.
. A
retail establishment
must not:
W
@
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
(.£}
@
establishment's
records.
52-106.
Regulations.
The County Executive may adopt regulations under method
ill
to implement
this Article.
100
101
102
103
104
105
52-107.
Enforcement.
~
Any violation of this Article is
£!
Class A civil violation. Each violation is
separate offense.
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
106
107
108
Approved:
Valerie Ervin, Presi ent, County Council
109
110
Approved:
111
112
This is a correct copy ofCouncil action.
113
114
~~. ~
Linda M. Lauer, Clerk ofthe Council
~/~1;2C)11
Date
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