Senate Bill S3288

                                
 
BILL NUMBER: S3288

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the tax law, in relation to authorizing localities to
adopt local laws, ordinances or resolutions imposing a tax on carryout
bags

 
PURPOSE:

To encourage reduction of plastic waste and pollution by allowing local-
ities to collect revenue from fees imposed on carryout bags.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 1201 of the tax law to allow taxes on the
provision of carryout bags by covered stores in cities of one million or
more, and requires local laws imposing such taxes to provide definitions
for "carryout bag" and "covered store."

              

Section 2 amends section 1202 of the tax law to allow taxes on the
provision of carryout bags by covered stores in counties not wholly
within a city, and requires local laws imposing such taxes to provide
definitions for "carryout bag" and "covered store."

Section 1 amends section 1201 of the tax law to allow taxes on the
provision of carryout bags by covered stores in cities under one
million, and requires local laws imposing such taxes to provide defi-
nitions for "carryout bag" and "covered store."

 
JUSTIFICATION:

Every year, New Yorkers use more than 20 billion plastic carryout bags,
the majority of which are sent to landfills. However, many bags do not
make it that far, instead getting stuck in trees, clogging storm drains,
getting caught in recycling equipment, and becoming part of the growing
islands of plastic pollution poisoning our oceans and our food supply.
According to an estimate by the World Economic Forum, "without signif-
icant action, there may be more plastic than fish in the ocean, by
weight, by 2050."

In 2017, the Legislature and the Governor took the unprecedented step of
overturning New York City's landmark "Bring Your Own Bag" law, which
would have placed a 5-cent fee on plastic and paper carryout bags. Among
the criticisms leveled against the City's law at the time was that
revenue from fees levied on plastic carryout bags would be retained by
the store rather than being collected by the government and allocated to
an environmental fund or other uses beneficial to the public. However,
under current state law, municipalities are not permitted to collect
such fees as taxes.

Twenty municipalities in New York State have enacted some combination of
bans and/or fees for carryout bags, including Suffolk County, Long
Beach, Mamaroneck, New Paltz, Hastings-on-Hudson, and New York City
(later overturned by the Legislature). Many more local rules or laws are
in discussion or pending. More than 1.6 million New Yorkers live in
areas covered by a patchwork of bans and fees. Among other challenges
associated with the lack of statewide action on the issue of plastic bag
pollution, these municipalities are unable to use the funds collected
through carryout bag fees for any environmental or other beneficial
purpose.

In 2017, Governor Andrew Cuomo announced the creation of a New York
State Plastic Bag Task Force, saying "the costly and negative impact of
plastic bags on New York's natural resources is a statewide issue that
demands a statewide solution." However, the Legislature has yet to act
on a statewide solution.

It is incumbent on the Legislature to repair the damage it inflicted in
overturning New York City's local law. In the absence of passing a
comprehensive statewide solution, the Legislature should, at the very
least, give localities that choose to take responsible action on their
own the ability to collect and allocate revenue from fees as they see
fit.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately.