Richmond has taxed 2.8 million plastic bags — but who's paying?
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Richmond's 5-cent plastic bag tax has generated nearly $115,000 in revenue and taxed 2.8 million bags since launching in January, but the city doesn't know how many retailers are paying it — or which ones.
Why it matters: That's because enforcement falls to Virginia Tax, and a city official tells Axios that Richmond still hasn't received a response from the state about how many businesses are participating.
The intrigue: Virginia Tax spokesperson Heather Cooper tells Axios the agency has received 517 sales and use tax returns containing plastic bag tax data since January.
- But Cooper says the agency can't share retailer-level data because taxpayer information is confidential.
Between the lines: Without retailer-level reporting, it's difficult to know whether some parts of the city are paying more of the tax than others.
Catch up quick: Richmond is the first in the region to pass a tax like this since the Legislature gave them the authority to in 2021.
- When City Council approved the tax last year, Councilmembers Ellen Robertson and Reva Trammell worried it would disproportionately affect neighborhoods with limited grocery options and older residents.
- Both represent parts of South Richmond, where supermarket options have historically been scarce.
Follow the money: Richmond hasn't spent any of the revenue yet, Tara Worden, Richmond's sustainability manager, tells Axios.
- But Worden says the city is planning where to allocate the funds, which could go toward compost drop-off sites, neighborhood cleanups and recycling efforts.
What's next: A live tracker is in the works to capture dollars as they're used.