DC Disposable Bag Tax Raises $150K in 1st Month

March 30, 2010

A 5-cent disposable bag tax has generated at least $150,000 in its first month.

Beginning in January, D.C. began imposing a 5 cent tax on disposable bags from grocery, drug, convenience and liquor stores. Most of the tax goes to cleaning up the Anacostia River.

DC's Office of Tax and Revenue said Monday the tax raised $149,432.27 in its first month, though not all retailers have yet reported the bag taxes they took in. The number includes the larger retailers like Safeway and Giant, which make monthly reports. Smaller businesses file reports quarterly or annually and have not yet reported whether they generated any bag tax money. About half of the district's retailors have reported.

Officials had estimated that the tax would generate about $3 million per year in revenue.

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