Business Compliance Checklist

Sample Receipt

 It is required by ordinance for businesses to display signage in store detailing the Disposable Bag Tax for customers. To support retailers, the City of Louisville has developed materials and resources available upon request to assist in compliance and help educate customers and employees. Use the hyperlink below to be taken to the request form. 

Bag Tax Materials Request Form

This form serves to notify the City of Louisville that the retailer below believes that it should not collect and remit the disposable bag tax as outlined in Chapter 3.34 of the Louisville Municipal Code. Use the hyperlink below to be taken to the request form. 

Bag Tax Exemption Form

Understand what your business will need to report on and what information needs to be collected by reviewing the Disposable Bag Tax - Sales Tax forms. 

Disposable Bag Tax Return

Disposable Bag Tax Return Instructions

Print Your Own

Businesses are required to display signage informing customers of the disposable bag tax (Chapter 3.34, Louisville Municipal Code). 

Poster - 8X11 

Poster - 8X11 Spanish

Point of Sale Placard

Point of Sale Placard - Spanish

For Your Employees

Cashier Cheat Sheet

All retailers within the City shall collect, remit, and pay the tax for each disposable bag provided to a customer. “Retailer” means any person selling, leasing, renting, or granting a license to use tangible personal property or services at retail NOT including any exemption provided in Ordinance No. 1814 Series 2021. This includes, but is not limited to:

• Retailers (food and non-food)
• Restaurants
• Gyms and fitness studios
• Personal and health service providers

In this ordinance, Retailer ALSO includes:

2. Vendors at farmer’s markets or other temporary events.

If you are unsure if your business is required to collect and remit the disposable bag tax or not, please email info@louisvilleco.gov. 

Yes! A reusable bag is defined as:

• Designed and manufactured to withstand repeated uses over a period of time;
• Made from a material that can be cleaned and disinfected regularly;
• At least 2. 25 mil thick if made from plastic;
• Has a minimum lifetime of seventy-five (75) uses; and
• Has the capability of carrying a minimum of eighteen (18) pounds.

Most reusable tote bags on the market today will fall within the ordinance definition.

No, Section 3.34.030 D of the ordinance prohibits store owners from paying or otherwise refunding the fee amount to customers. The intent of the bag fee ordinance is to dissuade customers from using disposable bags. If store owners pay the fee, the motivation for customers to avoid taking a disposable bag is lessened and lowers the likelihood of behavior change

Yes, per section Sec. 3.34.110 of the ordinance: “Every retailer subject to the collection of the disposable bag tax shall display a sign in a location outside or inside of the business, viewable by customers, alerting customers to the City’s disposable bag fee.”

The City provides the opportunity for businesses to request printed signage and additional materials and provide additional printable signage on the City’s website prior to implementation of the tax on January 1, 2022.

The disposable bag tax is a tax, not a fee. In order to reduce confusion among consumers, businesses collecting the tax from customers should identify the bag tax separately on receipts as the "Disposable Bag Tax" or "Bag Tax” or similar language.

Retailers are required to record the number of disposable bags provided and the total amount of disposable bag taxes charged on the customer transaction receipt. Retailers are also required to provide this same information to the City in remitting the disposable bag taxes.

There will be a separate disposable bag tax return, which will be due quarterly. 

The City of Louisville has developed materials specifically for businesses to aid with the transition, including: signage, resources, and reusable bags that can be provided on request to businesses. To aid with compliance, the City of Louisville has launched a residential education campaign that will ensure residents and visitors are aware of the upcoming tax and the importance of single-use plastics reduction within the community. 

Biodegradable single-use bags are not exempt from the bag tax. Our ordinance language requires a tax on biodegradable bags as they are still intended for single-use and thus considered disposable. The goal of the ballot measure and subsequent ordinance is to reduce the use of disposable bags in general and not to shift from one type of single-use item to another. Instead of providing an alternative disposable option, we want to encourage using reusable alternatives.