RICHMOND, Va. – Starting July 1, 2022, Loudoun County joins the cities of Falls Church, Roanoke, Alexandria and Fredericksburg, along with Fairfax and Arlington Counties, in requiring retailers to collect a new 5-cent tax for each disposable plastic bag they provide customers at checkout.
In 2021, the Virginia General Assembly passed legislation allowing localities to adopt the tax, used to fund local environmental initiatives. Once a locality adopts the tax, grocery stores, convenience stores and drugstores within that city or county are required to charge the tax.
Revenues generated by the tax will be spent on programs that address litter and pollution or help low-income residents obtain durable reusable shopping bags free of charge.
The tax does not apply to restaurants, food banks, farmers markets or clothing stores. It also does not apply to:
- Durable plastic bags that are specifically designed and manufactured for multiple reuse.
- Plastic bags that are solely used to wrap, contain, or package ice cream, meat, fish, poultry, produce, unwrapped bulk food items, or perishable food items in order to avoid damage or contamination.
- Plastic bags used to carry dry cleaning or prescription drugs.
- Multiple plastic bags sold in packages and intended for use as garbage, pet waste or leaf removal bags.
Affected businesses can report the collected tax on their sales and use tax returns. If they have questions about the tax, they can find official guidelines as well as Tax Bulletin 22-9 on the Virginia Tax website. Businesses can also contact the Virginia Tax Business Customer Service hotline at 804.367.8037.