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HB 1056

Local Government - Excise Tax on Plastic and Paper Carryout Bags

2025 Regular Session Introduced by Frank Conaway

Maryland bill authorizes local governments to independently impose excise taxes on plastic and paper carryout bags to reduce waste and encourage reusable bag use.

Hearing 3/05 at 1:00 p.m. (Environment and Transportation)
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Bill Summary · HB 1056

Legislative bill overview

HB 1056 would authorize local governments in Maryland to impose excise taxes on single-use plastic and paper carryout bags. The bill grants municipalities the power to establish their own bag tax rates and collection mechanisms, rather than implementing a statewide mandate. Revenue generated from these taxes would remain under local control.

Why is this important

Bag taxes represent a policy tool aimed at reducing plastic waste and encouraging reusable bag use, addressing environmental concerns about landfill space and ocean pollution. The bill's local-control approach allows communities with different economic conditions and waste priorities to set their own policy levels, but creates potential inconsistency across the state.

Potential points of contention

  • Consumer cost and regressive impact: Bag taxes disproportionately affect lower-income households that may have fewer reusable bags and less financial flexibility to absorb additional costs
  • Business compliance burden: Retailers would need to implement separate tax collection systems that vary by jurisdiction, creating administrative complexity and potential accounting challenges
  • Economic competitiveness: Neighboring jurisdictions without bag taxes might attract shoppers, disadvantaging local retailers in bag-taxing areas
  • Environmental effectiveness uncertainty: Studies show mixed results on whether bag taxes actually reduce plastic consumption or simply shift consumer behavior to purchasing thicker bags
  • Revenue allocation questions: The bill doesn't specify how municipalities must use tax revenue, raising concerns about whether funds support waste reduction programs or become general revenue

Compiled from official sources — confirm details with the bill’s official record.

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