In 2021, the Colorado General Assembly enacted House Bill 21-1162. Beginning January 1, 2024, the act prohibits stores and retail food establishments from providing single-use plastic carryout bags to customers. Certain retail food establishments, and small stores that operate solely in Colorado and have 3 or fewer locations, may provide single-use plastic carryout bags. 

On and after January 1, 2024, a store may furnish only a recycled paper carryout bag to a customer at the point of sale at a fee of 10 cents per bag or a higher fee imposed by the municipality or county in which the store is located.  A store is required to remit, on a quarterly basis beginning April 1, 2024, 60% of the carryout bag fee revenues to the municipality or county within which the store is located and may retain the remaining 40% of the carryout bag fee revenues. 

The carryout bag fee does not apply to a customer that provides evidence to the store that the customer is a participant in a federal or state food assistance program.

The act does not apply to materials used in the packaging of pharmaceutical drugs, medical devices, or dietary supplements or any equipment or materials used to manufacture pharmaceutical drugs, medical devices, or dietary supplements.

Learn more about the Carryout Bag Fee from the Colorado Department of Revenue.

Background

Between January 1, 2023, and January 1, 2024, a store may furnish a recycled paper carryout bag or a single-use plastic carryout bag to a customer at the point of sale if the customer pays a fee of 10 cents per bag or a higher fee adopted by the municipality or county in which the store is located. On and after January 1, 2024, a store may furnish only a recycled paper carryout bag to a customer at the point of sale at a fee of 10 cents per bag or a higher fee imposed by the municipality or county in which the store is located.

Beginning July 15, 2025 and on a quarterly basis thereafter, stores shall remit from the total amount of carryout bag fees collected in the previous quarter the amount that is owed to the city, payable to the City of Leadville, attention Finance Department, 800 Harrison Ave., Leadville, CO 80461

City of Leadville, Ordinance No. 2, Series of 2025

Remittance Process:

Unless you apply for and receive an exemption to this requirement (see more about this below), you must remit sixty percent (60%) of the collected fee to the City of Leadville every quarter. Your business retains the remaining forty percent (40%).

Retailers must remit carryout bag fees collected, on a quarterly basis, using this form.  This form must be submitted, even if the retailer did not collect more than $20 in carryout bag fees and will not be submitting any money. Returns are due on the 20th day of the month, following the reporting quarter. The return is due the next business day if the 20th is on a Saturday, Sunday, or legal holiday.

• 1st Quarter (January-March): April 20th
• 2nd Quarter (April-June): July 20th
• 3rd Quarter (July-September): October 20th
• 4th Quarter (October-December): January 20th

Exemption Status

As mentioned above, the state law does have an exemption to the fee collection and remittance requirement for eligible small stores. You qualify for the exemption if you operate solely in Colorado, have three or fewer locations, and are not part of a franchise, corporation, or partnership that has a physical location outside of Colorado.

If you believe your business qualifies as a small business for the exemption, please apply for the exemption form below, and return it to the City of Leadville, Finance Department at the address listed on the form. The City of Leadville, Finance Department will review the application and notify you of the decision.

Stores are exempt from collecting the Carryout Bag Fee if they meet the following criteria:

• If solely operated in Colorado; AND
• There are 3 or fewer locations in Colorado; AND
• Is not part of a franchise, corporation, or partnership, that is located outside of Colorado.

Stores that meet the exemption criteria may complete the Exemption Application Form here.