Q&A | Sorting claims about Seattle's proposed bag fee

In the final days before the Aug. 18 election, as voters consider whether Seattle should require certain stores to charge 20 cents at checkout counters for each disposable plastic or paper shopping bag supplied to customers, claims on each side are intensifying.

As a result, confusion surrounds key issues — from which stores would have to impose the charge to who supports it and how much revenue it would bring the city.

Here are answers to those and other questions regarding Referendum 1:

Q: Which stores would charge the fee?

A: Grocery stores, drugstores and convenience stores in Seattle would have to charge the fee, as would superstores such as Fred Meyer, which sell a full line of groceries along with general merchandise and are classified as grocery stores.

Department stores such as Macy's and Nordstrom, which also place purchased items in disposable bags, would not charge the fee, nor would homeless shelters, food banks and farmers markets.

The chief opponent of the measure, the Coalition to Stop the Seattle Bag Tax — also known as the No on 1 campaign —has contended on its Web site and in campaign literature that stores like Target and Wal-Mart would also be exempt.

The Wal-Mart claim is, in fact, a nonissue, since there are no Wal-Mart stores inside the Seattle city limits.

And according to the city, it's not yet clear whether stores like Target, which sell mostly general merchandise but also some groceries, would be required to charge for disposable bags.

Dick Lilly, spokesman for Seattle Public Utilities, which would administer the program, said the city will decide on a case-by-case basis after Referendum 1 passes — if it does — whether those retailers would be covered.

Q: Who publicly supports the measure and who doesn't?

A: Referendum 1's principal supporters, backed by numerous environmental groups, say in a recent mailing to voters that the measure is supported by area grocers and business leaders. According to the Green Bag Campaign's Web site, those grocers include PCC and smaller stores such as Madison Market, while business is represented by members of the Business Alliance for Local Living Economies (BALLE).

Most large supermarkets, though, are on the sidelines. Joe Gilliam, president of the Northwest Grocery Association — which represents stores such as QFC, Safeway and Fred Meyer — says the group is neutral on the issue, though "we support the right of the citizens to vote on the bag tax."

The No on 1 campaign is supported by the American Chemistry Council, 7-Eleven Inc., the Washington Association of Neighborhood Stores, Central Area Motivation Program and more than 1,200 individuals who have signed on. Seattle mayoral candidate Jan Drago also opposes Referendum 1.

Q: How much does the city expect to raise if Referendum 1 passes?

A: Stores with less than $1 million in annual gross revenues would keep all proceeds from the fee, while those grossing more than that must pass on 75 percent of what they collect to the city.

The No on 1 campaign is correct in stating in a recent mailer that "most stores" would keep the money, since there are more stores grossing less than $1 million in Seattle than stores grossing more.

But that side's further claim that "your money won't even go to recycling programs" is not accurate, because three-quarters of the fees collected by large chain stores would, in fact, be deposited into the city's Solid Waste Fund to promote reusable bags and other environmentally-friendly programs, according to the city.

How much money that ultimately would be depends on how often shoppers paid the fees.

The city estimates that if 90 percent of consumers avoid the fee by bringing their own bags, it could take in revenues of about $3.4million during the program's first 18 months. But if the program is a failure — if few households comply — the fee could generate as much as $10 million or more a year in city revenue, according to city estimates.

Q: Which types of bags would be exempt?

A: Essentially, the only bags subject to the fee are the plastic and paper grocery sacks provided at checkout counters. The fee would not apply to the small plastic bags for items found in produce sections or bulk-food aisles.

Among the bags that would be exempt are newspaper bags, laundry and dry-cleaning bags, and the packaged plastic garbage bags you buy off the shelf.

Q: How would the bag program be administered?

A: The city would hire two new employees to administer the fee. Seattle Public Utilities will develop programs to educate consumers, help low-income families deal with the new program, and evaluate the costs and benefits of extending the fee to all retail businesses. The bag program also would establish penalties for late payment or underpayment of fees by stores.

Q: When would the bag charge take effect?

A: If voters approve the fee, it would take effect Sept. 7, five days after the election is certified, which is scheduled for Sept. 2.

Lornet Turnbull: 206-464-2420 or lturnbull@seattletimes.com

Marc Ramirez: 206-464-8102 or mramirez@seattletimes.com

The information in this article, originally published August 8, 2009, was corrected August 19, 2009. Two new city employees who would administer the 20-cent bag fee if Referendum 1 passes would be hired by the Department of Executive Administration. A story in Wednesday's paper said they would be hired by Seattle Public Utilities.