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Committee advances bill to share plastic-bag tax revenue with towns
Summary
HB341 would distribute existing plastic-bag tax revenue to incorporated towns using the sales-tax distribution formula; proponents said towns could fund recycling and litter programs. The subcommittee reported the bill 7–3.
Delegate Martinez said HB341 would change how revenue from the existing 5-cent plastic-bag tax is distributed so incorporated towns receive an allocation based on the same formula used for sales-tax distribution. Martinez cited FY2025 data from Loudoun County and the town of Leesburg to show how much a town might gain under the proposed formula.
He noted towns (for example, Leesburg) provide recycling and litter-collection services that qualify under the authorized uses of bag-tax revenues. The delegate and supporting witnesses emphasized that many towns currently run environmental and education programs that could be funded more directly under a reconfigured distribution formula.
The Virginia Municipal League supported the measure; no organized opposition appeared in the hearing. The subcommittee reported HB341 to the full committee, with yays 7 and nays 3.
