Bag Fee & Styrofoam Ban

Plastic Pollution Reduction Act

The State of Colorado made a substantial move to combat plastic pollution by passing the Plastic Pollution Reduction Act (HB21-1162), or PPRAPlastic bag with red circle \"no\" symbol over it:

  • Phase 1: Initiated in 2023, introduced a statewide fee for plastic and paper bags.
  • Phase 2: Began Jan. 1, 2024, provides essential information on Prohibition of Plastic Bags by Large Businesses and Ban on Polystyrene Foam in Retail Food Establishments.
  1. Bag Fees
  2. Styrofoam Ban

Bag Fees

Beginning Jan. 1, 2023, House Bill 23-1285: Management of Plastic Products prohibits stores and retail food establishments from providing single-use plastic bags to customers without a fee. This new state law requires businesses with 3+ locations in Colorado to collect a 10-cent fee on each single-use plastic or recycled paper carryout bag provided to their customers. 

The store must remit 60% ($0.06) of the collected fee to the Town of Erie, while the business retains the other 40% ($0.04). 

Starting Jan, 1 2024, plastic bags will be banned statewide, and only recycled paper bags can be sold for a minimum of $0.10 fee.

Who is Affected?

  • Grocery stores and supermarkets
  • Convenience stores
  • Liquor stores
  • Retailers

Who is Exempted?

  • Businesses with three or fewer locations in Colorado
  • Farmers and roadside markets
  • Laundry or dry-cleaning services
  • Bulk stores

The bag fee does not apply to anyone who provides proof of participation in federal or state food assistance programs such as SNAP or EBT.

Support for Businesses

If you're a business owner in Boulder County, Partners for a Clean Environment (PACE) can assist you in making the right transition. Contact a business sustainability advisor at 303-786-7223 or email them at info@PACEpartners.com for guidance.

Fee Remittance Process

fee button tealRetailers who collect more than $20 in fees must remit bag fees on a quarterly basis to the Town of Erie. To remit collected fees to the Town, you must fill out the bag fee remittance form online and mail your payment to: 

Town of Erie
 Finance Department 
 PO Box 750 
 Erie, CO 80516  

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.

QuarterDeadline
1st QuarterApril 20
2nd QuarterJuly 20
3rd QuarterOct. 20
4th QuarterJan. 20

Bag Fee Revenue

Erie’s Sustainability Division and Economic Development Department will track the funds collected to ensure their optimal utilization. Currently, these funds support recycling, composting, and waste diversion programs throughout Erie. Additionally, we're actively researching the Green Star School Program and a working on developing a recycling and composting program for local businesses. Stay tuned for further updates on these upcoming programs.

Note: The single-use bag fee 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.