2023 New York Laws › ENV - Environmental Conservation › Article 27 - Collection, Treatment and Disposal of Refuse and Other Solid Waste › Title 28 - Bag Waste Reduction › 27-2805 - Paper Carryout Bag Reduction Fee.

§ 27-2805. Paper carryout bag reduction fee.
1. (a) Notwithstanding any other provision of law to the contrary, any
city  and  any  county,  other  than a county wholly within such a city,
acting through its local legislative  body,  is  hereby  authorized  and
empowered  to  adopt  and  amend  local  laws, ordinances or resolutions
imposing a paper carryout  bag  reduction  fee  within  the  territorial
limits  of  such city or county, to take effect on or after March first,
two thousand twenty. Notwithstanding the foregoing, if a  county  and  a
city  wholly within such county both impose such fee, the fee imposed by
such county shall not apply within the territorial limits of such city.
(b) Such paper carryout bag reduction fee, whether or not any tangible
personal property is sold therewith, shall be imposed at a rate of  five
cents  on  each  paper  carryout  bag  provided  by a person required to
collect tax to a customer in this state; provided,  however,  that  such
paper  carryout bag reduction fee shall not be imposed on paper carryout
bags that are subject to a fee on the provision of such  paper  carryout
bag  pursuant  to a local law or ordinance that was adopted prior to the
effective date of this section. The paper  carryout  bag  reduction  fee
must  be reflected and made payable on the sales slip, invoice, receipt,
or other statement of the price rendered to the customer.
(c) Such paper carryout bag  reduction  fee  shall  not  constitute  a
receipt  for  the  sale  of  tangible  personal  property subject to tax
pursuant to article  twenty-eight  and  pursuant  to  the  authority  of
article  twenty-nine of the tax law, and transfer of a bag to a customer
by a person required to collect tax shall not constitute a retail sale.
(d) It shall be unlawful for a municipal corporation to adopt or amend
a local law, ordinance or resolution requiring the imposition of any fee
on the provision of a paper carryout bag except as expressly  authorized
by this section. Where a municipal corporation that adopted such a local
law, ordinance or resolution prior to the effective date of this section
is,  or  is  located  in, a county that has imposed a paper carryout bag
reduction fee pursuant to this section, such municipal corporation shall
be prohibited from requiring the imposition of a fee on any provision of
paper carryout bags that occurs more than one  year  after  such  county
paper carryout bag reduction fee takes effect.
2.  Any  such  local  law, ordinance or resolution adopted pursuant to
this section shall state the amount of the paper carryout bag  reduction
fee  and  the date on which a person required to collect tax shall begin
to add such paper carryout bag reduction fee to the sales slip, invoice,
receipt, or other statement of the price rendered to its  customers.  No
such  local  law,  ordinance  or  resolution shall be effective unless a
certified copy of  such  law,  ordinance  or  resolution  is  mailed  by
registered or certified mail to the commissioner of taxation and finance
in accordance with the provisions of subdivisions (d) and (e) of section
twelve hundred ten of the tax law.
3.  The paper carryout bag reduction fee imposed by this section shall
not apply to any customer using the supplemental nutritional  assistance
program,  special  supplemental nutrition program for women, infants and
children, or any successor programs used as full or partial payment  for
the items purchased.
4.  The  paper carryout bag reduction fee must be reported and paid to
the commissioner of taxation and finance on  a  quarterly  basis  on  or
before  the  twentieth  day of the month following each quarterly period
ending  on  the  last  day  of  February,  May,  August  and   November,
respectively.  The  payments must be accompanied by a return in the form
and containing the information the commissioner of taxation and  finance
may prescribe.
5.  Any  sales  slip,  invoice,  receipt,  or other statement of price
furnished by a person required  to  collect  tax  to  a  customer  shall
separately  state  the  paper carryout bag reduction fee and shall state
the number of bags provided to the customer.
6.  (a)  Except  as  otherwise  provided  in  this  section, any paper
carryout bag reduction fee imposed under the authority of  this  section
shall  be administered and collected by the commissioner of taxation and
finance in a like manner as the taxes imposed by  articles  twenty-eight
and  twenty-nine  of  the  tax  law.  All  the  provisions  of  articles
twenty-eight and twenty-nine of the tax law,  including  the  provisions
relating to definitions, exemptions, returns, personal liability for the
tax,  collection  of  tax  from  the  customer,  payment  of tax and the
administration of the taxes imposed by such article, shall apply to  the
paper  carryout  bag  reduction  fee imposed under the authority of this
section, with such modifications as may be necessary in order  to  adapt
the language of those provisions to the paper carryout bag reduction fee
imposed  under  the  authority  of  this section. Those provisions shall
apply with the same force  and  effect  as  if  the  language  of  those
provisions  had  been  set  forth in full in this section, except to the
extent that any of  those  provisions  is  either  inconsistent  with  a
provision  of  this section or is not relevant to the paper carryout bag
reduction fee imposed under the authority of this section. For  purposes
of  this  section,  any  reference in this chapter to a tax or the taxes
imposed by articles twenty-eight and twenty-nine of the tax law shall be
deemed also to refer to the paper carryout  bag  reduction  fee  imposed
under  the  authority  of  this  section  unless  a different meaning is
clearly required.
(b)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this
subdivision:
(1)  the  exemptions provided for in section eleven hundred sixteen of
the tax law, other than the exemptions in paragraphs one, two and  three
of  subdivision  (a)  of  such  section,  shall  not  apply to the paper
carryout bag reduction fees imposed under the authority of this section;
(2) the credit provided in subdivision (f) of section  eleven  hundred
thirty-seven of the tax law shall not apply to this section.
(c)   Notwithstanding   the   provisions  of  paragraph  (a)  of  this
subdivision or subdivision (a) of section eleven  hundred  forty-six  of
the tax law, the commissioner of taxation and finance may, in his or her
discretion,   permit   the   commissioner   or  his  or  her  authorized
representative to inspect any return related to the paper  carryout  bag
reduction   fee  filed  under  this  section,  or  may  furnish  to  the
commissioner or his or her authorized representative any such return  or
supply  him  or her with information concerning an item contained in any
such return, or disclosed by any investigation of a liability under this
section.
7. All paper  carryout  bag  reduction  fee  monies  and  any  related
penalties  and  interest  remitted  to  the commissioner of taxation and
finance under this section, except as  hereinafter  provided,  shall  be
deposited  daily  with  such responsible banks, banking houses, or trust
companies as may be designated by the state comptroller. Of the revenues
deposited, the comptroller shall retain in the comptroller's hands  such
amount  as  the commissioner of taxation and finance may determine to be
necessary for  refunds  or  reimbursements  of  the  fees  collected  or
received  pursuant  to  this section, out of which the comptroller shall
pay any refunds or reimbursements of such fees to which persons shall be
entitled under the provisions of this section.  The  comptroller,  after
reserving  such  refund  and  reimbursement fund shall, on or before the
twelfth day of each month, pay to the appropriate fiscal officers of the

counties or cities imposing tax under subdivision one of this section an
amount equal to forty percent of the paper carryout  bag  reduction  fee
monies   and  any  related  penalties  and  interest  collected  by  the
commissioner  of  taxation and finance in respect of each such county or
city in the preceding calendar month to  be  used  for  the  purpose  of
purchasing  and  distributing reusable bags, with priority given to low-
and fixed-income communities.  Provided further that at the end of  each
fiscal  year, any funds which have not been used for the purpose defined
in this section shall be returned to the comptroller  and  be  deposited
into  the  general  fund  to  be  used for the purpose of purchasing and
distributing reusable bags with priority given to low- and  fixed-income
communities.  Any  remaining  amount of paper carryout bag reduction fee
monies and any related penalties and interest shall be deposited monthly
into the environmental protection fund established pursuant  to  section
ninety-two-s of the state finance law.