New Tire Tax Measure Passed By House Environmental Protection Committee

From this week’s House Republican Newsletter:

On Thursday, March 12, 2009, the House Environmental Protection Committee passed House Study bill 267, which became House File 798, by a party-line 12-aye to 9-nay vote. The bill creates a new state Waste Tire Stewardship and Management fund. The fund is financed with a new tire tax of $1 per tire sold at retail.

tiresThe tax commences on July 1, 2009, and generates an estimated $3-million in revenue each year. The bill eliminates the existing waste tire management fund, for which the funding mechanism expired in 2006, which funded that program with revenues from a portion of the surcharge on motor-vehicle title transfers that generated about $1-million a year. The new tire tax proposed by HF 798 is not assessed on resold used tires, recapped tires, or bicycle tires.

The bill provides that $400,000 of the funds raised each year are to register and permit waste tire processing, storage and hauling operations. Of the remaining moneys, 10% ($260,000) is used by the Department of Natural Resources (DNR) for public awareness and education on proper tire and solid waste disposal and recycling; 30% ($780,000) is used by DNR to support a grant program for end users of recycled waste tire products; 15% ($390,000) is used by DNR for grant programs to local governments and 28E entities for prevention, education, and enforcement programs targeting illegal dumping of waste tires, 5% ($130,000) is used to support DNR grants to local public health agencies concerning health and disease vectors posed by illegal waste tire disposal, and 40% ($1,040,000) is for waste tire abatement and illegal solid waste dump site cleanup.