Tax & Accounting Blog

Tax On Grocery Bags Could Be Looming In Virginia

Indirect Tax, Sales and Use Tax January 14, 2011

Virginia politician Joe Morrissey is pushing for the state to implement a tax on plastic grocery bags. He has stated that Virginians consume more than two billion bags per year, and as a means to lessen bag consumption he is suggesting that taxpayers should support a twenty cent tax per bag. While other state delegates are opposed to the idea of raising taxes on an already depressed economy as a means of fixing budget issues, they do support his environmental concerns. Early in 2010, Washington DC implemented a five cent bag tax on every plastic and paper bag used by shoppers at grocery and retail locations. To spite opposition, this could signify the beginning of a trend where more states turn to taxation on bags under the premise that it will help lessen the impact on the environment while simultaneously providing state and local governments with more revenues.