Committee backs city adoption of state-enabled 5¢ plastic bag fee to take effect Jan. 1, 2026

The Finance and Economic Development Standing Committee voted to forward an ordinance to City Council that would implement a state-enabled disposable plastic bag fee in Richmond, with an anticipated effective date of Jan. 1, 2026 if the council adopts it.

Office of Sustainability Director Laura Thomas told the committee that the state authorized localities to adopt such fees and that 10 other localities in Virginia have already done so. The fee is 5 cents per single-use disposable bag, Thomas said; 4 cents would be remitted to the city and 1 cent would remain with the retailer. Thomas said the state’s Department of Tax administers the program, collects retailer reports, and reimburses localities on a monthly basis.

Thomas said the city estimates first-year revenue “a little less than $400,000” and projected a lower amount in year two — roughly $100,000 to $150,000 — while noting those figures are estimates based on other localities. State law limits how jurisdictions may use the revenue, Thomas said: funds are restricted to litter cleanups, environmental education, distribution of reusable bags to SNAP and WIC participants, and related activities.

Thomas said the city will spend the summer prior to implementation on outreach and education to affected businesses, with a particular focus on small convenience stores and retailers. She said the administration would distribute reusable bags so community members would not be required to purchase them.

The committee voted to forward the ordinance to full council with a recommendation to approve.