Disposable Bag Fee and Plastic Bag Ban

Overview

Denver's Disposable Bag Fee (commonly referred to as Bring Your Own Bag) aims to reduce the number of disposable carryout bags used, littered, and landfilled. The Bring Your Own Bag program: 

  • Requires retail stores in Denver to charge ten cents ($0.10) for each disposable bag 
  • Prohibits retail stores from providing plastic bags to customers
  • Encourages shoppers to switch to reusable bags 

Retailers can submit their Disposable Bag Fee quarterly return through Denver's eBiz Portal

Quick Facts

  • Retail stores located in Denver are required to charge ten cents ($0.10) per carryout bag.
  • Shoppers can avoid the bag fee by bringing their own bags.
  • The bag fee does not apply to some bags such as those used to package bulk items, produce, meat, or fish.
  • Participants in state and federal Food Assistance Programs will not be charged for carryout bags.
  • Charges for bags must be displayed separately on customer receipts.
  • The store keeps portions of the bag fee to cover the cost of implementing the program and to address the impacts of disposable bags and single-use products in our community.
  • Every quarter, stores are required to submit bag counts and 60% of Disposable Bag Fees collected to the City and County of Denver.

 

Bag Fee Details

Definitions

  • "Customer" means anyone who makes a purchase from a retail store
  • "Disposable Bag" means any bag other than a reusable carryout bag that is intended for single-use purpose of transporting goods
  • "Disposable bag fee" means the fee of ten cents ($0.10) applied to a consumer's receipt at checkout imposed by the City and County of Denver, required to be paid to each customer that opts for a disposable bag
  • “Store” means a grocery store, supermarket, convenience store, liquor store, dry cleaner, pharmacy, drug store, clothing store, or other type of retail establishment at which carryout bags are traditionally provided to customers. 
    • Due to a change in state law, “Store” now includes a farmers market, roadside market or stand, festival, or other temporary vendor or event that includes temporary vendors. 
  • "Reusable carryout bag" means it is designed for multiple reuse; made of cloth, fiber, or other fabric that can be regularly sanitized and machine washable; has handles; has a permanent tag with manufacturing information; capable of carrying twenty-two pounds (22); capable of one hundred twenty-five (125) uses

Exemptions

  • Any bag that a customer brings into a retail store
  • Any bags provided to customers who are part of a federal or state food assistance program
  • Bags used by consumers inside of the retail store to package food items like meat, fish, baked goods, etc. or small hardware items like nails, nuts, screws, etc.
  • Bags used to protect purchased items from damaging or contaminating other purchased items
  • Bags provided by pharmacists to contain prescription drugs
  • Newspaper bags, door-hanger bags, laundry-dry cleaning garment bags, bags sold in packages for uses such as food storage, garbage, pet waste, etc.

Collection, Retention, Remittance, and Transfer of the Disposable Bag Fee

  • Retail stores must impose, collect and account for a disposable bag fee in the amount of ten cents ($0.10) per bag provided from the retail store
  • The retail store shall be liable and responsible for payment to the city in the amount of six cents ($0.06) of each disposable bag fee collected to defray costs to the City and County of Denver
  • A retail store must remit to the executive director of CASR the total amount due to the city for the preceding calendar quarter on or before the twentieth day of the month following the quarter end
  • A retail store may retain four cents ($0.04) of each disposable bag fee that may only be used to:
    • Provide educational information about the bag fee to customers
    • Develop and display informational signage to inform customers about the fee, encourage the use of reusable bags, or promote recycling of disposable bags
    • Train staff in the implementation and administration of the fee
    • Improve or alter infrastructure to allow implementation, collection, administration of the fee
    • Improve infrastructure to increase disposable plastic bag recycling
    • Provide free reusable carryout bags to customers
  • The retained portion of the disposable bag fee is not revenue for the purposes of calculating sales tax

Additional Requirements for Retail Stores

  • A retail store must record the number of disposable bags provided to a customer and the total amount of fees charged for the disposable bags, itemized by the material type
  • A retail store required to collect the disposable bag fee must display a sign in a location outside or inside of the business, viewable by customers, alerting customers to the disposable bag fee

Purposes and Allowed Uses of Monies in City Disposable Bag Fee Fund

Monies from the disposable bag fee may be used to defray the costs to the city for administering the disposable bag fee program including for the following specific uses:

  1. Administrative costs associated with developing, implementing, and administering the fee
  2. Provide reusable carryout bags to residents and visitors
  3. Educate residents, businesses, and visitors about the requirements of the program and impact of disposable bags on the city’s environmental health, the importance of reducing the number of disposable bags and other singles-use products entering the waste stream, and the expenses associated with mitigating the effects of disposable bags on the city’s drainage system, transportation system, wildlife and environment
  4. Fund programs and infrastructure that allow city to reduce waste associated with disposable bags and other single-use products
  5. Purchase and install equipment designed to minimize bag pollution, including recycling containers and waste receptacles associated with disposable bags and single-use products
  6. Fund community cleanup events that reduce trash associated with disposable bags and single-use products
  7. Mitigate the effects of disposable bags and single-use products on the city’s drainage system, transportation system, wildlife and environment
  8. Conduct studies of disposable bag usage and the impact of the disposable bag fee in Denver
  9. Maintain a public website that educates residents on the progress of waste reduction efforts associated with disposable bags and single-use products
  10. Develop a task force to analyze the data and impact, and to recommend improvements

Records and Violations

  • Retail stores must maintain accurate and complete records of the disposable bag fees collected, the number of disposable bags provided to customers, the form and recipients of any notice required by this article, and any underlying records, including books, accounts, invoices, or other records necessary to verify the accuracy and completeness of such records
  • If requested, each retail store must make records available for compliance audit by CASR during regular business hours for the city to verify compliance with this article
  • The city will treat the information as confidential commercial documents
  • If any retail store fails, neglects, or refuses to collect the disposable bag fee, or underpays the disposable bag fee, the exec director of CASR muse make an estimate of the fees due, and must add it to penalties, interest, and any additional fees due.
  • CASR executive director must serve a notice of final determination, assessment, and demand for payment from non-complying retailers
  • Any retail store may request a hearing on the assessment
  • Penalties for failure to submit payments for disposable bag fee on or before the applicable due date:
    • A penalty of ten percent (10%) on the total amount due
    • Interest charge of one percent (1%) on the amount of the deficiency of the disposable bag fee per month
  • Notices of Delinquency were sent on July 1, 2022.
  • Notices of Violation were sent on July 31, 2022.
  • Administrative Citations of nine hundred ninety nine dollars ($999.00) will be issued on August 30, 2022.
  • Retailers can request an appeal for late fees & interest applied to disposable bag remittance fees by completing this form. All appeal requests will be reviewed, but approval is not guaranteed. 

Bag Fee Late Penalty and Interest Appeal Form

Hearings

  • Retail stores may request a hearing on any proposed fee imposed under this title after receiving a notice of final determination, by filing a written request within twenty (20) calendar days
  • The request for hearing shall set forth the reasons for an amount

 

Frequently Asked Questions

General Questions

Why is disposable bag use a concern in Denver?

More than 100 million disposable bags are used annually in Denver, but less than five percent (5%) are recycled. Plastic bags are produced from non-renewable resources which are very difficult to recycle (they cannot go in the city’s purple recycle carts), and cause damage to recycling facility equipment. Plastic bags litter our community, block storm drains, and endanger wildlife.

Paper bags can be recycled, but they need a very large amount of water and energy to produce.

Why have a bag fee?

The Denver City Council adopted the Fee on Disposable Bags to reduce environmental impacts and cost to the city caused by disposable bags. A mandatory fee on disposable bags has been shown to significantly reduce the number of disposable bags used in other communities.

What stores are required to collect bag fees?

All retail stores within Denver that sell personal consumer goods, household items, or groceries must charge the fee. Examples of the types of stores include, but are not limited to: convenience stores, department stores, retail chain stores, hardware stores, liquor stores, and grocery stores.

"In accordance with Colorado State House Bill 21-1162, Denver’s bag fee ordinance must now extend to temporary vendors or events such as farmer’s markets and marijuana dispensaries. These retailers are required to charge the 10-cent fee per bag given at checkout, and must remit 6-cents per bag to the city quarterly."

Due to a change in state law, temporary vendors or events such as farmer’s markets, and marijuana dispensaries are no longer exempt and must charge the disposable bag fee. 

Which stores are not required to collect the bag fee?

Restaurants, beauty salons, auto mechanics, are examples of businesses where retail sales are not the primary business activity and thus are not required to charge the bag fee.  

Are signs about the bag fee required to be on display in stores?

Yes. Retail stores required to collect the bag fee must display a sign viewable to customers, alerting them to the bag fee.  

 


Who Pays the Bag Fee

Must stores charge all shoppers the bag fee?

All customers must be charged except those who provide proof of participation in a federal or state Food Assistance Program. Examples of Food Assistance Programs include EBT, SNAP, or TANF. 


How can I avoid the bag fee?

You can avoid paying the ten cents ($0.10) bag fee by bringing your own bags, including reusing disposable bags that you already have, or refusing a bag when you make a small purchase that is easy to carry without a bag.


Will I be charged if I bring my own plastic or paper bag?

No. The bag fee will not apply to bags you bring to a store for reuse, including disposable bags you already have. 

Are some types of bags exempt?

Yes. The Fee on Disposable Bags does not apply to any bag brought into a store by a customer, nor does it apply to packages containing multiple bags for food storage, garbage, pet waste, or yard waste. Additionally, the Fee on Disposable Bags does not apply to bags used by a customer inside the store to contain or wrap the following:

  • Loose bulk items such as produce, nuts, grains, candy, or small hardware
  • Frozen or freshly prepared food such as baked goods, meat, or fish
  • Flowers, potted plants, or other items where dampness might be a problem
  • Newspaper, laundry, or dry cleaning
  • Prescription drugs from the pharmacy


Does the fee apply to bags used for delivery orders or self-checkout?

Yes. The bag fee must be applied to each disposable bag (plastic, paper, or other material including but not limited to compostable material) used to deliver goods or provided at self-checkout.

 


Remitting Bag Fees

How is the ten cents ($0.10) fee monitored?

A retail store must record on a customer’s receipt the number of disposable bags (plastic, paper, or other material including but not limited to compostable material) provided to a customer and the total amount of fees charged for each type of bag. The bag fee cannot be included as revenue for the purposes of calculating sales tax to the customer.

The city reserves the right to request that a retail store make its records available for compliance audits and can assess penalties for failure to comply with the ordinance.

Anyone can report stores that may not be compliant with the Fee on Disposable Bags by filling out the Bag Fee Citation Appeal Form.

How and when do store owners report and remit the fees they collect?

Stores must pay the city six cents ($0.06) of each bag fee collected. Although this is not a tax, retailers are encouraged to submit the fees online using the same system that they report their sales taxes at www.denvergov.org/ebiztax/. The Bag Fee account type will be added to your existing profile which also includes Sales Tax and Occupational Privilege Tax. Bag Fees are due quarterly.

What type of information are stores be required to report?

Stores will be required to report the number of disposable bags distributed, itemized by bag material type and total fees due.


What happens to the portion of the bag fee kept by stores?

Stores keep four cents ($0.04) of each bag fee, and may only use the fee to cover the cost of:

  • Providing educational information about the bag fee to customers
  • Developing and displaying informational signage to inform customers of the fee, encourage use of reusable carryout bags, or promote recycling of disposable bags
  • Training staff on the implementation and administration of the fee
  • Improving or altering infrastructure to allow for the implementation, collection, and administration of the fee
  • Providing FREE reusable carryout bags to customers
  • Improving infrastructure to increase disposable plastic bag recycling

Can a store use their portion of the bag fee to provide free reusable carryout bags?

Yes. A store may use their portion of the fee to provide free reusable carryout bags, which are defined by Denver’s Revised Municipal Code as bags that:

  • Are specifically intended for multiple reuse
  • Made of cloth, fiber, or other fabric or material that can be cleaned and disinfected regularly, and must be machine-washable
  • Have handles
  • Cannot be made from a plastic film where thickness is measured in mils
  • Have a permanent tag identifying the name of the manufacturer, the material used to manufacture it, and location (country) where it was manufactured
  • Can carry twenty-two pounds (22) or more and be used one hundred twenty-five (125) or more times


What happens to the portion of the bag fee proceeds kept by the city?

The city may spend its portion of the bag fees on administering the bag fee program and public information programs focused on reducing the use of disposable bags and other single-use products, including providing free reusable bags to the community.  Monies may also be spent to address the impact of single-use products on the city’s environment and drainage system through community cleanups, infrastructure, and equipment. 

The Fee on Disposable Bags is not a tax and none of the proceeds can be used for other non-related government expenses.

 


Reusable Bags

What type of reusable bag is best?

The best bag is a reusable bag that you use for years and years and that you can wash. Choose a bag that is durable to avoid having to buy a replacement in the future. Consider bags made from recycled content material.

Should I regularly clean my reusable bags?

Yes. You should consider washing reusable bags between uses with mild soap and warm water.


How can I make remembering my bags a habit?

  • Write “Bring Bags” at the top of your grocery list and put your bags with your list.
  • Post a reminder note by your door.
  • Hang your bags by your door or put them back in your car or bike basket as soon as you empty and clean them.
  • Store or clip an extra bag in your purse or backpack.
  • Keep a spare bag at work.
  • Leave a few bags in your car.
  • Put your coupons in your bag.
  • If you regularly shop on a set day of the week, put a reminder in your phone or on your calendar to bring your bags. 


 


Disposable Bags

Aren’t disposable bags better for the environment than reusable bags?

No. While it’s true that more resources are used to make a reusable bag than to make a disposable bag, once you use your reusable bag a certain number of times (depending on the material type) its benefits outweigh the impacts from production. The best bag is a reusable bag that you use for years and years.

I use plastic bags to bag my recyclables. What should I do now?

Place your recyclables loose in your purple cart. Plastic bags are not allowed in Denver’s residential recycling program and never have been. Loose plastic bags clog machinery and cause equipment shut-downs at the recycling center. Bags with recyclables in them are not opened at the sorting facility due to safety concerns.


What will pet owners use to clean up after their pets?

Pet owners will still have multiple options to clean up pet waste. They can use plastic bags from newspapers, produce, or bread; paper bags; newspaper; or dog poop bags bought at the store.  


 


How the Bag Fee is Used

How is the ten cents ($0.10) bag fee monitored?

A retail store must record on a customer’s receipt the number of disposable bags (plastic, paper, or other material including but not limited to compostable material) provided to a customer and the total amount of fees charged for each type of bag. The bag fee cannot be included as revenue for the purposes of calculating sales tax to the customer. Anyone can report retail stores that may not be compliant with the Fee on Disposable Bags by calling 311 or (720) 913-1311.

What happens to the bag fee collected by stores?

Stores will keep four cents ($0.04) of each bag fee and may only use the fee to cover the cost of complying with the Fee on Disposable Bags, such as training employees, education customers, and providing free reusable carryout bags. The remaining six cents ($0.06) is kept by the city for uses such as administering the Fee on Disposable Bags program, public information programs on reducing the use of disposable bags and other single use products, and providing free reusable bags to the community. Monies may also be spent to address the impact of single-use products on the city’s environment and drainage system through community cleanups, infrastructure, and equipment. 

The Fee on Disposable Bags is not a tax and none of the proceeds can be used for other non-related government expenses.


This is a tax which violates TABOR. Isn’t this fee illegal?

The Fee on Disposable Bags is not a tax and none of the proceeds can be used for other non-related government expenses.  Additionally, the fee cannot be included as revenue for the purposes of calculating sales tax to a customer.


 


Bag Fee Forms

Pay Fees

Retailers are required to submit quarterly Disposable Bag Fee returns including total bag counts and 60% of fees collected. Submit your Disposable Bag Fee quarterly return through Denver's eBiz Portal:

Pay Fees

 

Refund Request

If the form does not appear, please refresh the page or access the form at this link

Click here to view form.

Exemption Request

If the form does not appear, please refresh the page or access the form at this link.

Click here to view form.

Citation Appeal

If the form does not appear, please refresh the page or access the form at this link.

Click here to view form.

Pay Citation

Delinquent Retailers that receive Administrative Citations need to complete the payment along with any outstanding bag fees, late penalties and interest by the comply-by date included in the citation letter.

To resolve delinquent status, retailers must pay any citations issued and complete all missing Quarterly Bag Fee Filing Forms through eBiz, including quarterly bag counts, remittance fees, late penalties, and interest.

Please use the link below to pay Bag Fee Citations

  • Citation #1 = $150
  • Citation #2 = $500
  • Citation #3 = $999

Pay Bag Fee Citations Online

 

Report a Store

If the form does not appear, please refresh the page or access the access the form at this link.

Click here to view form.

  

Retailer Resources

These retailer guides help you comply with the Fee on Disposable Bags ordinance. 

  • Bag fee basics
  • Signage requirements and free resources from Denver
  • Steps for reporting and remitting the bag fees you collect
  • How much of the bag fee you may keep and how you can spend it  

How to Remit Bag Fees(PDF, 101KB)

How to Complete the Bag Fee Remittance Form(PDF, 173KB)

Download and print these resources for your store:

 

Program Impacts

Disposable Bag Fee revenue is kept in a Special Purpose Revenue Fund that is governed by Allowable Uses. This fund is used to administer the program, monitor policy impacts over time, educate community members about waste reduction, and deliver programs that reduce waste city-wide. Check out some of our initiatives below! (include photo highlights) 

Reduction in Bag Usage: Changing Consumer Behavior 

  • Thanks to this policy, Denverites have decreased their consumption of disposable bags by about 94% compared to pre-policy estimates!
  • Between 2022 and 2025, the Disposable Bag Fee and Ban on Plastic Bags has prevented over 50 million plastic bags from entering the landfill!
  • To support this behavior change, Denver has provided over 50,000 free reusable bags to residents since 2021.

Reuse Denver: Helping Restaurants Eliminate Single-Use Items 

  • In 2024, this program used Disposable Bag Fee funding to help businesses switch from disposable food service items to reusables. Together, these businesses:
  • Stopped about 957,000 disposable items from being thrown away each year. 
  • Saved $97,304 by not buying disposable items. 

Plastic Bag Swaps: Engaging the Community on the Plastic Bag Ban

  • In 2024, Denver hosted 13 Plastic Bag Swap events to support the ban on plastic bags. Community members were invited to swap their home collections of plastic bags for a free reusable bag made from locally recycled materials. 
  • Denverites took this challenge in stride, bringing in over 57,000 plastic bags for specialty recycling! That is equal to over 500 pounds of plastic kept out of Denver landfills!
  • In return, we gave shoppers more than 2,000 reusable bags to use for their groceries instead.

Reuse Business Directory: Supporting the Circular Economy 

  • Denver’s Reuse Business Directory was created with the help of the Bag Fee to educate the public about businesses that offer consumers the opportunity to buy used goods, rent goods temporarily, or repair what they already own.

Check out the Directory