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2022-10ORDINANCE NO.2022-10 AN ORDINANCE AMENDING CHAPTER 90 (TAXATION) OF THE CODE OF THE CITY OF FAIRFAX, VIRGINIA, TO ADD THERETO A NEW ARTICLE XII, PERTAINING TO A NEW LOCAL DISPOSABLE PLASTIC BAG TAX. BE IT ORDAINED, by the City Council of the City of Fairfax, Virginia, that Chapter 90 of the Code of the City of Fairfax, Virginia, is amended to add thereto a new Article XIII, to read in its entirety as follows: "ARTICLE XIII — LOCAL DISPOSABLE PLASTIC BAG TAX Sec. 90-600. — Purpose. It is the purpose of this Article to implement the provisions of Code of Virginia, § 58.1-1745 et seq., permitting the City to impose a tax on certain disposable plastic bags, as provided herein and as governed by applicable law. This tax is intended to assist with the reduction of litter on public and private properties, reduce impacts on local streams and by extension into rivers, bays and oceans, reduce impacts on infrastructure, such as blocked and clogged storm drains, and otherwise lessen the impact on the environment of single use disposable plastic bags. Sec. 90-601. — Levy and rate. Except as expressly provided herein, there is hereby levied and imposed by the City a tax of five cents ($0.05) for each disposable plastic bag provided to a consumer of tangible personal property by retailers in grocery stores, convenience stores, or drugstores located within the municipal boundaries of the City. The tax shall be applicable and shall be collected whether or not such disposable plastic bag is provided free of charge to the consumer. The tax levied hereby shall be in strict conformance with applicable law, in addition to the provisions of this article, together with guidelines promulgated from time to time by the Virginia Tax Commissioner, to include any definitions and limitations contained therein. Sec. 90-602. — Exemptions. The tax imposed under this Article shall be inapplicable to the following: (i) Durable plastic bags with handles that are specifically designed and manufactured for multiple re -use, and that are at least four (4) mils thick; (ii) Plastic bags that are solely used (and are actually used at the time provided to the consumer) to wrap, contain, or package ice cream, meat, fish, poultry, produce, unwrapped bulk food items, or perishable food items in order to avoid or minimize damage or contamination; (iii) Plastic bags used to carry dry cleaning or prescription drugs; and (iv) Multiple plastic bags sold in packages and intended for use as garbage, pet waste waste, or leaf removal bags. Sec. 90-603. — Collection, administration and enforcement; retailer discount. (a) The tax imposed under this Article shall be collected by the applicable retailer, along with the purchase price and all other fees and taxes, at the time the consumer pays for such personal property. The State Tax Commissioner shall then collect, administer and enforce this tax from the retailer in accordance with Virginia law, and shall distribute the net tax revenue (the gross amount of taxes collected hereunder by the retailers, less any applicable retailer discount as set forth in this section, less any direct costs incurred by the Department of Tax Administration in administering, enforcing, and collecting the tax) to the City in accordance with applicable law. (b) Until January 1, 2023, every retailer that collects the tax imposed under this Article shall be allowed to retain two cents ($0.02) from the tax collected on each disposable plastic bag. (c) Beginning on January 1, 2023, every retailer that collects the tax imposed under this Article shall be allowed to retain one cent ($0.01) from the tax collected on each disposable plastic bag. (d) Any retailer that retains a discount pursuant to the provisions of this section shall account for said discount in the form of a deduction when submitting its tax return and paying the amount due in a timely manner. Sec. 90-604. — Limitation on use of revenue received from tax. All revenue that accrues to the City from the tax imposed by this Article shall be appropriated only for one or more of the purposes set forth in Code of Virginia, § 5 8.1-1745, as the same may be amended." The provisions of this ordinance are severable, and if any provision(s) of this ordinance or any application thereof is held invalid by a court of competent jurisdiction, that invalidity shall.not affect the other provisions or applications of this ordinance that can be given effect without the invalid provision or application. This Ordinance shall become effective as of January 1, 2023, and otherwise as required by law. INTRODUCED: March 8, 2022 PUBLIC HEARING: March 22, 2022 ENACTED: July 12, 2022 ATTEST: City Clerk VOTE: Mayor Meyer Aye Councilmember Harmon Naye Councilmember Lim Aye Councilmember Miller Aye Councilmember Ross Aye Councilmember Stehle Aye Councilmember Yi Naye 6R.IeAssl 4, Mayor / ZQa te 70 1 a