Delegate Marty Martinez presented House Bill 1764 to the House Committee on County, Cities and Towns, saying the measure would direct distribution of an existing 5¢ plastic bag tax to towns using the same formula used for sales tax distributions.

Martinez said the authorizing statute — cited in committee as Section 58.1‑1735 — currently permits cities and counties to impose the 5¢ bag tax but does not include towns. "Towns are not included in this authorization," Martinez said, adding the bill would allow town governments that already provide qualifying services to receive a share of revenues generated within county jurisdictions that include incorporated towns.

The sponsor said the change would not require tracking point‑of‑sale generation and would use an existing, understood sales tax distribution method. Martinez provided an example he described as based on 2023 distributions, saying "the town of Leesburg would have benefited from $48,271 in additional tax revenue to support recycling and litter collection efforts." He also noted the revenue is intended for environmental cleanup, educational programs to reduce waste, mitigation of pollution and providing reusable bags to SNAP and WIC recipients.

Michelle Gowdy of the Virginia Municipal League spoke in support. Committee members offered remarks in support and concern; Delegate Gary Higgins said he personally opposed the bag tax but supported returning revenue to towns that collect and remit the tax. "If the jurisdiction is going to choose to pass this bag tax," Higgins said, "then they should give that money to the towns." Delegate Shen and others acknowledged the bill had been discussed in prior sessions.

On a bipartisan roll vote, the committee reported HB 1764 out of committee, 13 yes and 9 no. The bill will move forward for further House consideration.