SUMMARY OF PLASTIC BAG TAX
Effective January 1, 2022, disposable plastic bags provided at point of sale for in-store, to-go, delivery or curbside pickup purchases are subject to a five-cent tax. The tax applies to purchases made at grocery stores, convenience stores and drugstores, as defined in final guidelines published by the Virginia Department of Taxation. To avoid the tax, consumers are encouraged to use reusable shopping bags. Paper bags are not subject to the five-cent tax, although certain retailers may have their own fees for paper bags. Additional exceptions apply to plastic bags used to carry dry cleaning or prescription drugs, bags solely used to wrap perishable food items, and other items defined in the final guidelines.
Several neighboring jurisdictions, including Arlington County, Loudoun County, the City of Alexandria and the City of Falls Church have also enacted a disposable plastic bag tax. To learn more about the plastic bag tax in our region, please visit the NOVA Plastic Solution regional website.
Revenue from this tax is being collected by the Virginia Department of Taxation and disbursed to each locality monthly. Fairfax County’s plastic bag tax ordinance tracks both enabling legislation passed in the 2020 session of the Virginia General Assembly, as well as guidelines adopted by the state Tax Commissioner. The legislation requires that the plastic bag tax be collected by the retailer at time of purchase, with revenue to be allocated toward:
- Environmental cleanup programs
- Pollution and litter mitigation programs
- Educational programs on environmental waste reduction
- Provision of reusable bags to recipients of Supplemental Nutrition Assistance Program (SNAP) or Women, Infants, and Children Program (WIC) benefits
The tax is being administered and enforced by the state Department of Taxation. For questions about administration or enforcement, individuals may contact Virginia Tax at (804) 367-8031.
INFORMATION FOR RETAILERS
Retailers may retain a one-cent discount from the tax collected on each disposable plastic bag. The tax is being collected, administered, and enforced by the state Department of Taxation in the same manner as the Retail Sales and Use Tax. For questions about administration and enforcement, please consult the official guidelines and Tax Bulletin 11-9 at Virginia Tax. Retailers may also call the Virginia Tax Business Customer Service line at (804) 367-8037.
To spread awareness about the tax at point of sale, retailers may use the following flyers or point of sale stickers:
Download an 8.5 x 11" flyer to post at your business.
Download a 6 x 4" point of sale graphic which can be turned into a sticker.
Download a 7 x 5" point of sale graphic which can be turned into a cling.
INFORMATION ON PLASTIC BAG TAX REVENUE
The Department of Tax Administration (DTA) provides revenue totals for the plastic bag tax. Between January 1, 2022, and March 31, 2026, the bag tax has generated over $10 million in revenue. Revenue received by the county is broken down by year and month in the following chart. The variation in revenue totals between years one and two reflects a change in the retailer discount, which decreased from two cents to one cent, beginning January 1, 2023. Effective July 1, 2026, the towns of Herndon, Vienna and Clifton will receive a distribution of plastic bag tax revenue based on the local sales tax distribution formula.
INFORMATION ON REVENUE ALLOCATIONS
Projects for funding are identified through an internal selection process open to county departments, contributary agencies and Fairfax County Public Schools. Information on revenue allocations is updated on a quarterly basis.