Single Use Bag Fee
Effective January 1, 2023, per Colorado House Bill 21-1162, stores and retail food establishments are required to charge customers a 10 cent fee for each single-use plastic and paper bag used at the point of sale. Businesses will retain four cents of the fee to cover the costs of administration and compliance while six cents is to be remitted to the City of Centennial on a quarterly basis starting April 20, 2024.
The City is prepared to begin accepting this fee prior to 2024. Businesses may voluntarily remit for the first quarter of 2023 using the button below.
Disposable Bag Fee Payment
Please note: You do not need to apply for a new account or license for the Bag Fee requirement.
What is a single-use bag?
A single-use bag is a bag that is not reusable and is destined for our local landfill or recycling process. The bag fee is only on single-use plastic and paper bags distributed to customers at the point of sale. This does not include reusable bags that may be provided by the store or any bag brought in by the customer to be used.
What will the fee money be used for?
Businesses keep 40% of the fee in order to cover their costs complying with the State law, administration, training employees, etc. The City of Centennial receives 60% of the fee for the following uses:
- Administrative or enforcement costs associated with developing and implementing the fee
- Educating residents, businesses and visitors about the impacts of disposable bags
- Other waste reduction, recycling, composting or waste diversion programs
Note: The single-use bag fee is a fee, not a tax and therefore all proceeds collected in accordance with this State law can only be used for the purposes listed above and cannot be used for general government expenses.
What businesses are included in the single-use bag fee?
- Grocery stores and supermarkets
- Major retailers
- Major convenience stores
- Clothing stores
- Hardware stores
- Other stores that are a franchise or a chain located outside of Colorado
- Other major stores that include self-checkout and delivery services
- Major liquor stores
Exemptions from single-use bag fee
- Customers that provide evidence to the store that they are a participant in a federal or state food assistance program
- Farmers markets
- Laundry or dry cleaning services
- Bulk stores
- Smaller businesses with three or fewer locations
- Bags used by consumers inside the store for items like produce, bulk items, candy, small hardware items, meat, bakery or floral items
- Restaurants are exempt from the single-use bag fee however they will be prohibited from distributing polystyrene foam containers beginning in 2024
For more information on this mandate please reference the Colorado HB21-1162 or the Colorado Department of Revenue.