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MA Senate Passes  New Consumer Taxes on Paper Bags & Paint

The MA Senate last month adopted a $3.6 billion Environmental Bond Bill, S.3064, An Act to build resilience for Massachusetts communities, that unfortunately includes new product bans and consumer taxes.  RAM strongly opposed the inclusion of outside policy matters unrelated to the overall focus of the bond bill, to authorize multi-year expenditures for environmental needs and projects.

The troubling provisions include:

  • A ban on plastic carryout bags – allowable exemptions include bags for pharmacy/prescription medication, bag used to protect items from damage/contamination, unwrapped food, to protect articles of clothing on a hanger, frozen food items, raw meat, uncooked seafood or similar products, etc.
    • Only reusable bags or recycled paper bags allowed at carryout
    • Paper Bag Tax - Recycled paper bags subject to a minimum $0.10 charge, with $0.05 remitted to the state
    • “Reusable bag”, a bag that: (i) is made of machine-washable cloth, fabric, hemp or other woven or non-woven fibers; (ii) has handles that are stitched with thread and not heat-fused; and (iii) is designed and manufactured for multiple uses; provided, however, that a “reusable bag” shall not include a bag made of plastic film of any thickness
  • A ban on black plastic “Food service ware”
    • “Food service ware”, disposable products used for serving or transporting foods or including, but not limited to, plates, bowls, trays, cups, cartons, hinged or lidded containers, straws, stirrers, cup spill plugs, cup sleeves, condiments, containers, utensils, cocktail sticks or picks, toothpicks, film wrap and napkins
    • Food service ware may only be provided upon request by the customer
  • Paint Extended Producer Responsibility (EPR) program – a program to take back unused paint, that unfortunately is 100% CONSUMER FINANCED, by a tax on every can of paint sold in the Commonwealth.
    • Adds up to a $1.45 TARIFF or tax on every gallon of paint sold in MA
    • Paint manufacturers have long pushed for this program, as they get total control of the program and bear none of the costs. 
    • The bill is actually silent on the costs of the paint program, but we can look to the state of Washington to see the true cost:
      • 1-2 gallons        $1.45
      • 2-5 gallons        $2.75

RAM continues to argue that imposing additional costs on paint and bags, whether you want to call them a tariff, a tax or a fee, is misguided given today’s consumer affordability challenges. 

Roughly 70% of the MA population today lives in a municipality that has already adopted a plastic bag ban.  This is really about a $0.10 TAX on the only option left – a paper bag.

Massachusetts consumers could buy their paint for less in New Hampshire, tax free, and dispose of any leftovers in Massachusetts.  Our retailers operate in a very competitive environment and as we see every day along our New Hampshire border, if a consumer can save the current 6.25% sales tax on the purchase of a product, that savings alone is often enough to entice a consumer to buy out of state.  An added tax or tariff on paint, combined with a paper bag tax, will only make matters worse for our local sellers. 

The bill is now before the House Committee on Ways and Means for review.  All interested members are encouraged to contact their legislators, both in the House and the Senate, to share your opinions on the proposal.