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Herndon, Vienna and Clifton could receive a share of Fairfax County’s plastic bag tax revenue under legislation advancing through the Virginia General Assembly, though the proposal faces an uncertain future after Gov. Glenn Youngkin vetoed a similar measure last year.
Del. Marty Martinez, a Democrat representing the 29th District, introduced the bill to give Virginia towns a portion of the bag-tax money collected by the counties surrounding them.
The House of Delegates approved the measure 52-45 on Jan. 23. On Feb. 10, the Senate Committee on Local Government advanced it on an 8-7 party-line vote and referred it to the Senate Committee on Finance and Appropriations. The bill would then need to reach the full Senate.
Virginia law has allowed cities and counties to tax single-use plastic bags at retail stores since 2020. Fairfax County is among the localities that adopted the tax.
Although retailers inside incorporated towns collect the tax, the resulting revenue currently goes directly to the county government. Martinez’s proposal would distribute some of that money to towns using the same formula applied to sales-tax revenue.
Herndon and Vienna could gain funding from the change. Clifton might receive a smaller amount because it has only a few retailers within its boundaries.
State law limits use of bag-tax revenue to environmental programs and certain social-safety-net services. Martinez said many towns already provide services that would qualify.
Fairfax County began charging the maximum allowable tax of 5 cents per bag in January 2022. Retailers retain 1 cent to cover administrative expenses.
County officials reported late last year that the tax was reducing the use of single-use plastic bags while generating money for recycling and other environmental programs.
Martinez sponsored a similar bill last year that passed both chambers, largely along party lines. Youngkin vetoed it, arguing that plastic bag taxes burden residents, fail to meet their goals and could encourage governments to rely further on the revenue. The House sustained his veto.
During the Feb. 10 committee meeting, Martinez questioned why the new bill needed review by the Finance and Appropriations Committee when it would impose no costs on the state.
Sen. Jeremy McPike, the Democratic chair of the local government committee, said Finance and Appropriations had requested the referral, indicating that such requests are rarely rejected by other committees.