Plastic Bag Tax Generates Much Less Cash Than Budgeted - NBC Connecticut

Plastic Bag Tax Generates Much Less Cash Than Budgeted

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    NEWSLETTERS

    Plastic Bag Tax Bringing in Less Than Expected

    It's been over three months since that 10-cent tax went into effect for plastic bags, and the state is finding that revenues are much lower than expected.

    (Published Wednesday, Nov. 13, 2019)

    A new state report indicates Connecticut consumers are remembering to bring their own bags to the supermarket.

    Revenue estimates released Tuesday by Democratic Gov. Ned Lamont's budget office and the legislative Office of Fiscal Analysis project the new 10-cent fee for disposable plastic bags will generate $7 million in the current fiscal year, not the $27.7 million included in the state budget.

    Office of Policy and Management Secretary Melissa McCaw says the 75 percent drop in anticipated revenue from the tax is not a sign of economic weakness. Rather, she says consumers and businesses have adapted to the goal of reducing the number of these non-recyclable bags in the environment.

    The same report shows consumer spending is stronger, with sales tax revenues estimated to be $46.8 million higher than originally budgeted.

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