Paying your disposable bag tax
The Louisville Municipal Code requires retailers charge $0.25 for each disposable bag provided. This tax applies to plastic, paper, and any other bag types. Retailers must collect this tax at checkout.
The distribution of the $0.25 fee is as follows:
- The City of Louisville receives $0.15 for tax administration. This revenue also funds local sustainability projects.
- The retailer keeps $0.10 as a vendor fee. This fee helps pay for staff training. It also covers updates to point-of-sale systems and recycling improvements.
Who has to collect the tax?
Unless specifically exempted under Ordinance No. 1814 (Series 2021), the tax applies to anyone selling or leasing tangible personal property. It also covers renting, licensing and services.
This includes, but is not limited to:
- Retailers (both food and non-food establishments)
- Restaurants and food service providers
- Gyms and fitness studios
- Personal and health service providers
- Temporary vendors (including farmers' market vendors and event booths)
How do I pay my bag tax?
Your bag tax is due every quarter. You must file a return, even if you have no bag tax due that quarter. To pay your tax, you'll complete a Bag Tax Return and send it to us with a check.
- Download the Bag Tax Return form (PDF)
- Download instructions for completing your Bag Tax Return form (PDF)
Required in-store signage & resources
All businesses must have signs in their stores. The signs should inform customers about the Disposable Bag Tax.
Free compliance and educational resources — both digital and hard copies — are available from the city upon request.
If you have any questions, email us at info@louisvilleco.gov.