Disposable Plastic Bag Tax
The Richmond Office of Sustainability is working to implement the actions outlined in Waste Reduction & Recovery Pathway of the RVAgreen 2050 plan. These waste reduction actions are aimed at reducing Richmond’s landfill waste by eliminating some of the most preventable waste at the source including disposable plastic bags, styrofoam containers, and party balloons.
Our overarching goal is ambitious but necessary: to reduce Richmond's overall landfill waste by 25% by 2030, while advancing environmental justice and creating economic benefits for all residents.
Plastic bag fees play a crucial role in mitigating the environmental impact of single-use plastics by reducing dependence while funding environmental education and waste reduction efforts. Currently, ten Virginia localities have adopted disposable plastic bag taxes in line with Commonwealth legislation passed in 2020. The 5¢ Disposable Plastic Bag Tax took effect on January 1st, 2026.
Tax Revenue To-Date
Revenue from this tax is being collected by the Virginia Department of Taxation and disbursed to each locality monthly. The legislation requires that the plastic bag tax be collected by the retailer at time of purchase, with revenue to be allocated toward:
Environmental cleanup programs
Pollution and litter mitigation programs
Educational programs on environmental waste reduction
Provision of reusable bags to recipients of Supplemental Nutrition Assistance Program (SNAP) or Women, Infants, and Children Program (WIC) benefits
Below is a static image but stay tuned for a live dashboard revenue tracker.
How the Disposable Plastic Bag Tax Works
Plastic bag fees play a crucial role in mitigating the environmental impact of single-use plastics by reducing dependence while funding environmental education and waste reduction efforts. Currently, ten Virginia localities have adopted disposable plastic bag taxes in line with Commonwealth legislation passed in 2020. Based on peer-city analysis, the average annual tax burden on residents would be approximately $2.12 per person and generate approximately $400,000 in revenue.
The 5¢ Disposable Plastic Bag Tax will take effect on January 1st, 2026.
What type of bags are subject to the tax?
The five-cent per bag tax applies to disposable plastic bags provided to shoppers in grocery stores, convenience stores, or pharmacies. The tax applies regardless of whether the bags are provided to the customer free of charge or if the store charges the customer for the bags.
How are taxes collected?
Tax collection is managed through Virginia Tax via Form ST-1 Retail Sales and Use Tax Return. Tax revenue will be split between the City and Retailers at a ratio of 4:1 cents.
How is the tax revenue used?
Revenue generated by the plastic bag tax will fund environmental cleanups, recycling education programs, and providing reusable bags to recipients of SNAP/WIC benefits.
For more information, visit rva.gov/finance/disposable-plastic-bag-tax.
Additional Resources
How to Get Involved
Pickup a Free Reusable Bag!
The Office of Sustainability has partnered with the Department of Parks and Recreation to offer free reusable bags to Richmond residents. Stop by your nearest Parks and Rec Community Center and ask at the front desk for an RVAgreen 2050 reusable tote bag! Supplies are limited and bags are limited to one per person.
Spread the word!
Please print and post these flyers in your business or community board to help us spread the word.
