Plastic bags - retail establishments

From the 2024 DOR Tax Exemption Study

82.04.770 - Plastic bags - retail establishments Description Pass-through charges on recycled content paper carryout bags and reusable carryout bags made of film plastic provided by retail establishments are exempt from B&O tax. Purpose To encourage shoppers to bring their own reusable carryout bags to reduce waste, litter, marine pollution, conserve resources, and protect fish and wildlife. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.220 $0.220 $0.340 $0.340 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.210 $0.340 $0.340 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the Washington population growth rate reflected in the Office of Financial Management's April 2022 forecast. - Until December 31, 2025, a retail establishment must collect a pass-through charge of eight cents for every compliant carryout bag. - Beginning January 1, 2026, a retail estab