Reading over a press release from Tommy Wells' office yesterday I was really struck by some of the numbers. Here's the release:
First Report of Anacostia River Cleanup & Protection Act Shows Dramatic Progress
(Washington, DC) – Earlier today, DC’s Office of Tax and Revenue announced the first month’s revenue from DC’s Anacostia River Cleanup and Protection Act – a measure that places a 5-cent fee on disposable bags from retail establishments and supports a new dedicated Anacostia River Cleanup Fund.
In the month of January 2010, the Fund received $149,432.27.
“While it’s difficult to project the annual results based on just the first month’s experience, the report shows that residents are making great strides in reducing disposable bag use,” stated Wells. Wells also noted that the numbers suggest residents are beating projections in how quickly the reduction will take place.
The District’s Chief Financial Officer noted last year that District residents use approximately 270 million disposable bags per year, or 22.5 million bags per month. The January 2010 report accounts for a little less than 3 million disposable bags – suggesting a marked decrease.
Large retailers have reported disposable bag use has dropped more than 50 percent, with some businesses reporting decreases greater than 80 percent.
“I’m thrilled with these initial results,” added Wells. “Not only are we reducing the number of disposable bags entering our environment, but we also have new resources flowing to help with the cleanup and restoration of the Anacostia River.”
The Washington Post has further information.
12 comments:
I'm curious whether the reduction from 22 million (or whatever the number was) per month to 3 million per month in January is really a reduction due to the bag tax, or is merely a reflection that many businesses are simply not charging for the bags and are reporting a reduction because they don't have anything to put toward the cleanup fund as they haven't been charging the tax. I am for the bag tax, but a reduction from 22 million to 3 million in the first month seems TOO successful to be true.
Hmm...have you found you're not being charged the tax at a lot of businesses? I have been asked and/or charged it (if I forgot my bags) at Safeway, Giant, Harris-Teeter, CVS, local Capitol Hill convenience stores, etc. Maybe it's happening in stores in other parts of DC? I haven't seen or heard anything about that.
From a purely anecdotal standpoint, I've noticed that a lot of shoppers carry the reusable bags when they go shopping now. I only get a few disposable bags when I buy a large amount of groceries.
If this reduction is really happening, thank GOD!
Plastic shopping bags are bad for the environment and they make lousy street tree ornaments.
The before and after estimates are NOT based on the same method.
According to the CFO report, the "before" estimate of 22.5 million/month is based on estimates for a similarly sized city, Seattle.
See
http://app.cfo.dc.gov/services/fiscal_impact/pdf/spring09/Final-Anacostia-River-Cleanup-and-Protection-Act-of-2009.pdf
and
http://www.seattle.gov/util/Services/Recycling/Reduce,_Reuse_&_Exchange/ProposedGreenFee/
The "after" estimate is based on a back calculation from the fee revenue received.
It's really an apples-to-oranges comparison in terms of how the estimates were generated. Maybe DC used more bags than Seattle, maybe fewer, prior to the fee. Maybe there is still significant non-compliance with the fee. Many factors might skew either the before or after estimate, making it difficult to derive a reliable estimate of the real reduction in bags used.
But, based on the experience of large retailers who have a consistent picture of bag use in their own stores, it is probably still safe to say there was a "marked decrease."
My own experience with fast-food places downtown (Qdoba, Quiznos) makes me believe there is still significant non-compliance among some high-volume chains.
I suspect most businesses are collecting, if only because they get 1.5 cents out of the nickel.
I don't have any reason to think businesses are not collecting the tax other than the difference between the before and after being so huge (which, as explained above, is not an oranges-to-oranges comparison). I haven't been charged for bags, but I don't usually use them. I carry my own bags or I just put things in my purse.
Before the tax I would be given a plastic bag for a simple candy bar and was never asked if I want a bag. Even when I said that I don't need a bag, they generally don't listen and subconsciously just throw the small item in the bag and hand it over to me. I felt bothered when I would take the item out and give them the empty bad and they would throw the bag away. It is a waste of money for the store and destroys the environment too.
After the tax took effect, they ask if I would like a bag and listen to me. A couple of time they have punched in the tax and I got them to hand over the 5 cents. also, I have made more of an effort to bring my own. Why not have the customers in the stores use the boxes instead of bags? It reduces the stores waste and you can get more in a box at times.
I was in Filene's basement and some guy was charged the tax for a bag and demanded to talk with a manager. I have heard that some stores that are not to be charging for the tax do charge customers.
I was charged the 5-cents at Filene's and was a little surprised. I hadn't thought of taking my own bag to a department store. When I told the lady behind the counter I thought only grocery stores were doing that, she said she thought it was because some of them sell food...small candy, pretzels, etc. That's probably not why, but I thought I'd pass the rumor on.
Unfortunately, much of this is a result of "leakage" to surrounding jurisdictions and suppression of commercial activity (smaller purchases, delayed purchases, etc.). We can see this effect clearly in the cigarette tax increase which actually netted a loss of revenue over the previous year. We don't have any pre-tax data in the district to compare the bag tax to, as one commenter has noted. It remains to be seen how much the bag tax reduces receipts and purchase volume, but the effect is certain. The unintended behavioral shifts are hurting DC businesses with no measurable effect on the environment.
Anecdotally, most of the longstanding small businesses around me charged the tax initially, then just quit doing so. All the large chains continue to charge of course. I am not sure how those stores not charging the tax intend to handle the dept. of revenue when the time comes.
anon 10:25
Only the stores that sell food are to charge the bag tax. That is if they sell candy or like a grocery. I don't recall that Filene's sells anything other than clothes. Now, Macy's does sell some fancy chocolates, so I can see them charging the tax, but don't recall if they do.
Anyone who goes all the way out to Maryland or Virginia in order to save on the 5-cent bag tax clearly has too much time on their hands.
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