AGENDA ITEM 3A
April 23, 2013
Introduction
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
~ichael
Faden, Senior Legislative Attorney
Introduction:
Bill 10-13, Taxation - Excise Tax - Disposable Carryout Bags ­
Scope
Bill 10-13, Taxation Excise Tax - Disposable Carryout Bags - Scope, sponsored by
Councilmembers Berliner, Floreen, and Rice, is scheduled to be introduced on April 23, 2013. A
public hearing is tentatively scheduled for June 18 at 7:30 p.m.
Bill 10-13 would limit the excise tax on carryout bags, enacted in Bill 8-11, to those used
at food stores. A food store is defined as
any
retail store where food consists of more than 2% of
gross sales by dollar value. The tax would continue to cover bags used at food stores for non­
food items. Bill 10-13 would also repeal the tax on plastic food take-out bags.
This packet contains:
Bi1110-13
Legislative Request Report
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Circle #
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Bill No.
10-13
Concerning: Taxation - Excise Tax ­
Disposable Carryout Bags - Scope
Revised: 4-16-13
Draft No. _3_
Introduced:
April 23, 2013
Expires:
October 23,2014
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _
~
_ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
--uN=on"",e~~:--
_ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council members Berliner, Floreen, and Rice
AN
ACT to:
(1)
(2)
modify the scope of the excise tax on certain disposable carryout bags; and
generally amend the law governing the excise
tax
on certain disposable carryout
bags.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-101
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
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 unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 10-13
1
Sec. 1.
Section 52-101 is amended as follows:
52-101.
Definitions.
2
3
4
5
In
this Article, the following tenns have the following meanings:
*
*
*
Carryout bag
means a paper or plastic bag provided by a retail food sale
establishment to a customer at the point of sale, pickup, or delivery to carry
purchased items. Carryout bag does not include:
(1)
(2)
a bag provided by a phannacist that contains a prescription drug;
any newspaper bag or bag intended for initial use as a
dry
cleaning,
garbage, pet waste, or yard waste bag;
(3)
a bag provided at the point of sale at a seasonal event, such as a fanners
market, street fair, or yard sale, or by an occasional retailer;
(4)
a [paper] bag that a restaurant gives a customer to take prepared or
leftover food or drink from the restaurant; or
(5)
a bag used to package a bulk item or to contain or wrap a perishable
item.
6
7
8
9
10
11
12
13
14
15
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*
*
*
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Retail establishment
means any person engaged in the retail sale of [goods]
food, alone or in combination with other items. Retail establishment includes any
supennarket, convenience store, shop, service station, or restaurant, and any other
sales outlet where a customer can buy [goods] food.
Retail establishment
does not
include any place where the sale of food does not exceed 2% of the gross sales,
Qy
dollar value, of all items sold.
Approved:
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Nancy Navarro, President, County Council
Date
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LEGISLATIVE REQUEST REPORT
Bill 10-13
Taxation
-
Excise Tax
-
Disposable Carryout Bags
-
Scope
DESCRIPTION:
Limits the excise tax on carryout bags to those used at food stores.
Food store is defined as any retail store where food consists of more
than 2% of gross sales by dollar value. The tax would continue to
cover bags used at food stores for non-food items. Also repeals the
tax on plastic food take-out bags.
Consumers find it inconvenient to carry reusable bags to non-food
stores, such as department stores. Non-food bags make up small
amounts of bag litter.
To focus the tax on disposable bags on those which create most of the
litter problem.
Department of Environmental Protection, Department of Finance
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney, 240-777-7905
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Class A for failure to remit tax by retailer.
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