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Checkout bag fees

This article applies to:AvaTax

Learn how to use AvaTax to calculate checkout bag fees, which are a fee collected on certain kinds of grocery bags to encourage businesses and consumers to use recyclable bags instead of non-biodegradable plastic ones.




Calculation of checkout bag fees is not compatible with all business applications, and may require custom development using the AvaTax APIs . Contact your Account Manager if you're interested in using Avalara to calculate checkout bag fees.


Where you collect tax

Configure where you collect checkout bag fees. AvaTax supports calculation of these fees in the following jurisdictions:

Jurisdiction name Jurisdiction type Region Country
Chicago City IL US
Suffolk County County NY US
Tompkins County County NY US
New York City City NY US

Tax codes

Use one of the following tax codes to calculate checkout bag fees:

Tax code Tax code name
PB500200 Checkout Bag (plastic)
PB500100 Checkout Bag (paper)
PB500201 Checkout Bag (plastic; min. 4 mils thick; for long-term re-use)
PB500202 Checkout Bag (plastic; min. 2.25 mils thick; for long-term re-use; min. capacity 15L; washable/disinfectable; label shows name and location of manufacturer, true statement that bag contains no heavy metals, percentage of postconsumer material, if any)
PB500101 Checkout Bag (paper; max. capacity 8# (approx. 5.2L); contains min. 20% postconsumer material; is compostable and recyclable; label shows percentage of recycled content)
PB500102 Checkout Bag (paper; min. capacity 1/8th barrel (approx. 14.5L); contains min. 40% postconsumer material and no old growth fiber; is compostable and recyclable; label shows Recyclable, % of recycled content, name and location of manufacturer)
PB500000 Checkout Bag (any material)


Example transaction

Checkout bag fees transaction.png

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