The Washington State Paper Bag Tax
- Sales Tax News
- Jul 3, 2014 | Gail Cole
To discourage the use of paper bags (and encourage shoppers to use their own, reusable bags), several cities in the State of Washington require retail establishments to charge a small fee for “certain carryout bags.” This small fee is considered a retail sale and is subject to retail sales tax (and the retailing B&O tax).
Seattle, Bellingham, and Bainbridge Island are among the cities that charge for the use of paper bags. They are joined by the cities of Olympia, Tumwater, Lacey and unincorporated Thurston County, effective July 1, 2014.
Seattle retail stores are also banned from providing customers with single-use plastic bags. But encouragement only goes so far: there is no sales tax exemption for sales of reusable shopping bags.
Additional information about the Washington State Department of Revenue.
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