Washington Sales Tax on Bag Fees
- Aug 10, 2012 | Will Frei
Some Washington cities now require retailers to charge customers a fee for certain carry out bags, such as the disposable plastic bags and paper bags used at grocery stores. The Department states that this kind of fee constitutes a ". . . retail sale, subject to retail sales tax and the retailing B&O tax."
In addition, Seattle, Bellingham and some other cities have passed, or may pass, ordinances that ban the use of plastic carryout bags. These ordinances require, or allow, retailers to ". . . collect fees from customers who request paper carryout bags." According to the Department, these fees are also subject to sales tax.