By Alex Thompson, March 10, 2026

Polypac

In an increasingly dynamic economic landscape, fiscal policies are constantly evolving to adapt to new realities. One area witnessing significant changes is the taxation of various consumer goods, particularly as environmental concerns rise to the forefront of public policy. Various states across the U.S. have begun to implement tariffs, surcharges, and fees on an array of products, which have profound implications for retailers and consumers alike.

Understanding the Fiscal Landscape

Government entities are tasked with finding innovative revenue streams, especially during periods of economic uncertainty. A notable pattern is the shift toward taxing more unconventional sources. As Dr. Lindsey Piegza, chief economist at Stifel Financial, observed during a recent conference, many governments are focusing on e-commerce, internet-based services, and environmentally driven taxes. This trend is set to expand into broader realms of taxation policy.

California is at the forefront of implementing such taxes and fees, particularly those aimed at reducing environmental impacts. For instance, the state has developed over a dozen special taxes, such as:

Energy resources surcharge
Integrated waste management fee
Fire prevention fee
Marine invasive species fee
Occupational lead poisoning prevention fee
Oil spill response, prevention, and administration fees
Timber yield tax

These taxes not only reflect the state’s commitment to environmental protection but also signal a growing trend that other states are likely to follow. Further examination of retail delivery fees and additional charges reveals the complexities arising from these new policies.

Fees on Retail Delivery Services

Starting from July 1, 2022, Colorado implemented a retail delivery fee of 27 cents on sales of tangible goods that are subject to state sales tax and delivered to a Colorado address. This fee notably encompasses all deliveries made by motor vehicle, thus impacting various sales channels, including e-commerce and traditional brick-and-mortar retail operations.

Retailers must distinctly list this delivery charge on customer invoices, adding another layer to the billing process. Moreover, compliance dictates that businesses remit these fees according to the same schedule applied to sales tax, which includes the necessity of zero returns, meaning retailers must file even when no deliveries have occurred.

Electronic Waste Fees

California has also introduced an electronic waste recycling fee for any new or refurbished electronic devices with a screen size greater than four inches. Termed the eWaste fee, the rate varies from $4 to $6, based on screen size, with retailers required to collect this fee at the point of sale.

While many states have developed electronic waste management regulations, California’s model—extending fees directly to retailers—remains relatively rare. As awareness of electronic waste grows, other states may adopt similar approaches in the coming years to mitigate the environmental impacts of discarded electronic devices.

Lead-Acid Battery Fees

Another noteworthy fee structure involves lead-acid batteries, which are subject to a battery fee in California that has been in effect since April 1, 2017. With specific criteria determining applicability—such as weight and voltage—these fees represent another attempt to regulate consumer goods that have significant environmental implications.

California is not alone; states like Florida, Missouri, South Carolina, and Texas have also introduced their own variations of battery fees. These fees can complicate sales transactions and compliance for retailers, who must ensure that they navigate the changing legal landscape efficiently.

Single-Use Bag Charges

To combat plastic waste, numerous states have instituted fees on single-use bags, designed to discourage usage and promote environmental responsibility. Below is a summary of some states and their respective bag fee regulations:

California: Minimum 10-cent fee per bag; local laws may add additional fees.
Colorado: 10-cent fee on recycled plastic or paper bags through 2023; a total ban on plastic bags starts in 2024.
Connecticut: Single-use plastic bags are now banned; previously, a 10-cent fee was in effect.
Delaware: Retailers can charge for reusable bags starting July 1, 2022, during the implementation of a plastic carryout bag ban.
District of Columbia: 5-cent fee on caryout plastic or paper bags.
Hawaii: Minimum of 15 cents per recyclable paper or reusable plastic bag.
Maine: 5-cent fee on caryout bags made of recycled paper or reusable plastic bags.
Oregon: A minimum 5-cent fee is required for paper or reusable bags.
Washington: An 8-cent fee for bags through December 31, 2025, escalating for certain reusable bags thereafter.
Vermont: Ban on plastic bags and a 10-cent fee for paper bags.

This growing trend is indicative of the larger movement toward sustainability and environmental stewardship. Interestingly, some cities have adopted their own regulations that may exceed state mandates, contributing to a patchwork of compliance obligations for retailers.

Fees Related to Waste Disposal

Waste disposal regulations are also evolving. Several states have imposed fees for the disposal or management of refuse. For instance, Mississippi has implemented a charge of $1 per ton for nonhazardous waste and a sliding scale depending on circumstances for hazardous waste, ranging from $1 to $10 per ton. This is indicative of the state’s focus on managing waste responsibly.

North Carolina charges a solid waste disposal tax of $2 per ton while also requiring businesses to file a registration application with the state’s Department of Revenue. In Washington, a refuse tax applies to the collection, transfer, storage, or disposal of solid waste, while service providers must collect and remit these taxes.

Complexities of Compliance

The introduction of these fees complicates compliance for retailers. Most businesses must register for applicable fees while navigating the administrative burden of collecting, remitting, and reporting these charges. In Florida, for instance, the lead-acid battery fee can be either included or excluded from the sales tax base, depending on its presentation in invoices.

Texas mandates that the battery sales fee be listed separately, but this fee is exempt from sales tax. Similarly, California’s bag tax is not subject to sales tax, adding to the regulatory complexity. States may allow retailers to retain a small percentage of collected fees to help offset compliance costs— for example, Missouri’s provision for a 6% collection reduction on certain fees.

As Dr. Piegza indicates, we might observe an increasing variety of taxes and fees affecting the retail landscape in the future. Keeping abreast of these changes is essential for businesses to maintain compliance and operate effectively in this evolving marketplace.

For further insights into navigating these complex tax regulations, consider visiting the comprehensive resources offered by Polypac.

Disclaimer: Sales tax rates, rules, and regulations change frequently. Although we hope you’ll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.