I 
112TH CONGRESS 
1ST SESSION H. R. 1628 
To amend the Internal Revenue Code of 1986 to impose a retail tax on 
disposable carryout bags, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 15, 2011 
Mr. MORAN (for himself and Ms. NORTON) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committee on Natural Resources, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a retail tax on disposable carryout bags, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Trash Reduction Act 
of 2011’’. 
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SEC. 2. IMPOSITION OF TAX ON DISPOSABLE CARRYOUT 
BAGS. 
(a) GENERAL RULE.—Chapter 31 of the Internal 
Revenue Code of 1986 (relating to retail excise taxes) is 
amended by inserting after subchapter C the following new 
subchapter: 
‘‘Subchapter D—Disposable Carryout Bags 
‘‘Sec. 4056. Imposition of tax. 
‘‘SEC. 4056. IMPOSITION OF TAX. 
‘‘(a) GENERAL RULE.—There is hereby imposed on 
any retail sale a tax on each disposable carryout bag. 
‘‘(b) AMOUNT OF TAX.—The amount of tax imposed 
by subsection (a) shall be $0.05 per disposable carryout 
bag. 
‘‘(c) LIABILITY FOR TAX.—The retailer shall be liable 
for the tax imposed by this section. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) DISPOSABLE CARRYOUT BAG.— 
‘‘(A) IN GENERAL.—The term ‘disposable 
carryout bag’ means a bag of any material, 
commonly plastic or kraft paper, which is pro-
vided to a consumer at the point of sale to 
carry or cover purchases, merchandise, or other 
items. 
‘‘(B) EXCEPTIONS.—Such term does not 
include— 
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‘‘(i) any reusable bag, 
‘‘(ii) any bag manufactured for use by 
a customer inside a store to package bulk 
items such as fruit, vegetables, nuts, 
grains, candy, or small hardware items, 
such as nails and bolts, 
‘‘(iii) any bag that contains or wraps 
frozen foods, prepared foods, or baked 
goods when not prepackaged, 
‘‘(iv) any bag manufactured for use by 
a pharmacist to contain prescription drugs, 
and 
‘‘(v) any bag manufactured to be sold 
at retail in packages containing multiple 
bags intended for use as garbage, pet 
waste, or yard waste bags. 
‘‘(2) REUSABLE BAG.—The term ‘reusable bag’ 
means a bag that is— 
‘‘(A)(i) made of cloth or other machine 
washable fabric, or 
‘‘(ii) made of a durable plastic that is at 
least 2.25 millimeters thick, and 
‘‘(B) is specifically designed and manufac-
tured for multiple use. 
‘‘(e) SPECIAL RULES.— 
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‘‘(1) PASS
THROUGH
OF
TAX.—The tax im-
posed by subsection (a) shall be passed through to 
the customer and shall be separately stated on the 
receipt of sale provided to the customer. 
‘‘(2) 1ST
RETAIL
SALE; USE
TREATED
AS 
SALE.—For purposes of this section, rules similar to 
the rules of subsections (a) and (b) of section 4002 
shall apply.’’. 
(b) CARRYOUT BAG RECYCLING PROGRAM.—Sub-
chapter B of chapter 65 of such Code is amended by add-
ing at the end the following new section: 
‘‘SEC. 6433. QUALIFIED DISPOSABLE CARRYOUT BAG RECY-
CLING PROGRAM. 
‘‘(a) ALLOWANCE OF CREDIT.—If— 
‘‘(1) tax has been imposed under section 4056 
on any disposable carryout bag, 
‘‘(2) a retailer provides such bag to a customer 
in a point of sale transaction, 
‘‘(3) such retailer has in effect at the time of 
such transaction a qualified carryout bag recycling 
program, and 
‘‘(4) such retailer has kept and can produce 
records for purposes of this section and section 4056 
that include the total number of disposable carryout 
bags purchased and the amounts passed through to 
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the customer for such bags pursuant to section 
4056(e), 
the Secretary shall pay (without interest) to such retailer 
an amount equal to the applicable amount for each such 
bag used by the retailer in connection with a point of sale 
transaction. 
‘‘(b) APPLICABLE AMOUNT.—For purposes of sub-
section (a), the applicable amount is $0.01. 
‘‘(c) QUALIFIED DISPOSABLE CARRYOUT BAG RECY-
CLING PROGRAM.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified carry-
out bag recycling program’ means a recycling pro-
gram under which the retailer— 
‘‘(A) to the extent the retailer provides dis-
posable carryout bags (as defined in section 
4056) to customers— 
‘‘(i) passes through the tax imposed 
by section 4056 and tracks the total num-
ber of bags purchased and amount of tax 
passed 
through 
pursuant 
to 
section 
6433(a), 
‘‘(ii) has printed or displayed on each 
such bag, in a manner clearly visible to a 
customer, the words ‘PLEASE RETURN 
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TO A PARTICIPATING STORE FOR 
RECYCLING’, 
‘‘(iii) uses bags that are 100 percent 
recyclable, 
‘‘(iv) uses bags that are made of high- 
density polyethylene film marked with the 
SPI resin identification code 2 or low-den-
sity polyethylene film marked with the SPI 
resin identification code 4, and 
‘‘(v) uses bags that contain a min-
imum of 40 percent post-consumer recycled 
content, 
‘‘(B) places at each place of business at 
which retail operations are conducted one or 
more carryout bag collection bins which are 
visible, easily accessible to the customer, and 
clearly marked as being for the purpose of col-
lecting and recycling disposable carryout bags, 
‘‘(C) recycles the disposable carryout bags 
collected pursuant to subparagraph (B), 
‘‘(D) maintains for not less than 3 years 
records (which shall be available to the Sec-
retary) describing the collection, transport, and 
recycling of disposable carryout bags collected, 
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‘‘(E) makes available to customers within 
the retail establishment reusable bags (as de-
fined in section 4056(c)(2)) which may be pur-
chased and used in lieu of using a disposable 
carryout bag, and 
‘‘(F) meets the definition of 4056(d)(3). 
‘‘(2) RECYCLING
PROGRAM.—The term ‘recy-
cling program’ means a program that processes used 
materials or waste materials into new products to 
prevent waste of potentially useful materials; reduce 
raw materials consumption; reduce energy usage; re-
duce air, water, or other pollution; or reduce the 
need for disposal.’’. 
(c) ESTABLISHMENT OF TRUST FUND.—Subchapter 
A of chapter 98 of such Code (relating to trust fund code) 
is amended by adding at the end the following: 
‘‘SEC. 9512. DISPOSABLE CARRYOUT BAG TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Disposable carryout bag Trust Fund’ 
(referred to in this section as the ‘Trust Fund’), consisting 
of such amounts as may be appropriated or credited to 
the Trust Fund as provided in this section or section 
9602(b). 
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‘‘(b) TRANSFERS TO TRUST FUND.—There is hereby 
appropriated to the Trust Fund an amount equivalent to 
the amounts received in the Treasury pursuant to section 
4056. 
‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 
in the Trust Fund shall be available, as provided by appro-
priation Acts, for making payments under section 6433. 
‘‘(d) TRANSFER TO LAND AND WATER CONSERVA-
TION FUND.— 
‘‘(1) IN
GENERAL.—The Secretary shall pay 
from time to time from the Trust Fund into the 
land and water conservation fund provided for in 
title I of the Land and Water Conservation Fund 
Act of 1965 amounts (as determined by the Sec-
retary) equivalent to the aggregate of the trans-
actions on which tax is imposed under section 4056 
aggregate amounts determined on the basis of 
$0.01. 
‘‘(2) SPECIAL
RULE
REGARDING
AMOUNTS 
TRANSFERRED.—Amounts transferred to the land 
and water conservation fund under paragraph (1) 
shall not be taken into account for purposes of de-
termining amounts to be appropriated or credited to 
the fund under section 2(c) of the Land and Water 
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Conservation Fund Act of 1965 (16 U.S.C. 460l– 
5(c)).’’. 
(d) STUDY.—Not later than December 31, 2013, the 
Comptroller General of the United States shall conduct 
a study on the effectiveness of the provisions of this Act 
at reducing the use of disposable carryout bags and en-
couraging recycling of such bags. The report shall— 
(1) address measures that the Comptroller Gen-
eral determines may increase the effectiveness of 
such provisions, including the amount of tax im-
posed on each disposable carryout bag, and 
(2) any effects, both positive and negative, on 
any United States businesses. The Comptroller Gen-
eral shall submit a report of such study to the Com-
mittee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the 
Senate. 
(e) CLERICAL AMENDMENTS.— 
(1) The table of subchapters for chapter 31 of 
such Code is amended by inserting after the item re-
lating to adding at the end thereof the following new 
item: 
‘‘Subchapter D. Disposable carryout bags.’’. 
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(2) The table of sections for subchapter B of 
chapter 65 of such Code is amended by adding at 
the end the following new item: 
‘‘Sec. 6433. Qualified disposable carryout bag recycling program.’’. 
(3) The table of sections for subchapter A of 
chapter 98 of such Code is amended by adding at 
the end the following new item: 
‘‘Sec. 9512. Disposable carryout bag trust fund.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2011. 
Æ 
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