The State of Colorado bag fee goes into effect January 1, 2023.  This bag fee is the result of the Colorado General Assembly House Bill 21-1162, which provides for the following:

• Beginning January 1, 2023 through January 1, 2024 any store;
  • That has more than three (3) retail locations or
  • Is part of a franchise, corporation, or partnership that has physical store locations outside of Colorado

will charge a fee of 10 cents per bag for all single-use plastic or paper carryout bags.

• The carryout bag fee does not apply to a customer who provides evidence that they are a participant in a federal or state food assistance program.

• On or after January 1, 2024, a store may provide only recycled paper carryout bags for a fee of 10 cents per bag, and plastic bags will no longer be allowed in affected stores. Additionally, polystyrene food containers will be banned from use in all stores, no exceptions.

Beginning April 1, 2024, and continuing on a quarterly basis, any affected store located in the County of Montezuma will remit 60% of the carryout 10 cent bag fee revenues to the County; the remaining 40% of the fee is retained by the business.

The act also does not apply to materials used in the packaging of pharmaceutical drugs, medical devices, dietary supplements, or any equipment or materials used to manufacture pharmaceutical drugs, medical devices, or dietary supplements.

An additional exemption is made for food service and restaurant establishments regardless of the number of locations or ownership structure.  Grocery stores and convenience stores are not included in this exemption.

The County of Montezuma reminds residents and consumers that this is not a County Ordinance, Resolution, or initiative.

Additional Information about the carryout bag fee can be found at:  https://tax.colorado.gov/carryout-bag-fee.