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Bag Tax Funded Waste Reduction Programs Proposal <br />Project Background <br />In 2020, Louisville voters approved Ballot Question 2A, which aims to reduce single -use bag <br />consumption within the community by applying a $0.25 tax on every paper and plastic bag provided to <br />customers by Louisville retailers. Retailers will retain $0.10 of each disposable bag tax collected as a <br />vendor's fee to be used for administration of the tax, such as training staff, improving or altering <br />infrastructure for administration of the tax, and improving infrastructure to increase bag recycling. The <br />remaining $0.15 of each disposable bag tax collected and remitted to the City shall be used only for <br />costs related to administration of the tax or other sustainability-related initiatives and programs. The <br />bag tax went into effect January 1, 2022. <br />Louisville Bag Tax Business Profile <br />When the tax began, there were 345 total businesses on the bag tax list. Of those businesses, 130 <br />(37.7%) businesses have completed a Retailer Correction Form and are now exempt from the tax, <br />leaving 215 businesses remaining on the bag tax list. New businesses are added to the bag tax business <br />list when they submit for a new business license and, if the business does not use bags, are removed <br />from the list when they complete a Retailer Correction Form and the form is reviewed and approved by <br />City staff. <br />Of the 215 current bag tax businesses, 72 are food -related (restaurant, bakery, cafe), 50 are vendors <br />(products, art, catering — likely does not have a physical location in Louisville), 46 are retail <br />(convenience, hardware, gifts), 40 are service (salon, dentistry, pet grooming, yoga, etc.), 7 are grocery <br />and liquor. The percentage breakdown is shown in the graph below. <br />■ Food <br />■ Vendor <br />■ Retail <br />Service <br />■ Grocery <br />Agenda Packet P. 35 <br />