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SUBJECT: DISPOSABLE BAG TAX IMPLEMENTATION AND PROGRAMMING <br />DATE: MARCH 15, 2021 PAGE 3 OF 8 <br />Any individual enrolled in a food assistance program (i.e. SNAP) is exempt from the <br />disposable bag tax to remove financial burden. In order to comply, a legal affidavit will <br />be available to businesses in both English and Spanish that must be completed with <br />every purchase from a retailer that does not have an automated system to process such <br />purchases. Boulder County Housing and Human Service's reporting from 2015 <br />indicates that there were approximately 588 Louisville residents on food assistance. <br />Working with Boulder County's HHS team to distribute information and available bags is <br />included within the draft implementation plan. <br />ESTIMATED REVENUE <br />To project future tax revenue that will be collected starting in 2022, staff has estimated <br />figures based on three potential rates of behavior change scenarios: <br />Scenario A - Low Behavior Change <br />0 65% rate of behavior change <br />o Reduction in waste: 2.9 million bags <br />o Bags remaining: 1.6 million <br />o Estimated annual revenue $393,750 ($236,250 remitted to City) <br />Scenario B - Moderate Behavior Change <br />0 75% rate of behavior change <br />o Reduction in waste: 3.4 million bags <br />o Bags remaining: 1.1 million bags <br />o Estimated annual revenue $281,250 ($168,750 remitted to City) <br />Scenario C — High Behavior Change <br />0 85% rate of behavior change <br />o Reduction in waste: 3.8 million bags <br />o Bags remaining: 675,000 <br />o Estimated annual revenue $168,750 ($101,250 remitted to City) <br />As the rate of behavior change increases and the number of disposable bags is <br />reduced, there is less tax revenue. While the City would be successful in reducing a <br />greater number of disposable bags, it would also be responsible for costs beyond what <br />it generated through tax revenue. <br />IMPLEMENTATION <br />Staff estimated initial setup costs in 2021 for implementation of the tax in 2022 as <br />follows: <br />Resource <br />Cost <br />Administration <br />• Finance staffing (part-time starting in October 2021) <br />$5,000 <br />FINANCE COMMITTEE COMMUNICATION <br />E <br />