Extend Waste Tire Management Fee
Continuation of the Waste Tire Management Fee
S. 6609-A/A. 9709-A (Part DD)
MEMORANDUM IN OPPOSITION
Unshackle Upstate, a bipartisan coalition of more than 70 business and trade organizations representing a growing group of more than 70,000 companies and employing upwards of 1.5 million people, opposes the Article VII budget language found in S. 6609-A/A. 9709-A, which would continue to require the collection of a $2.50 Waste Tire Management Fee which is scheduled to sunset on December 31, 2010.
Beginning September 12, 2003, pursuant to section 27-1913 of the Environmental Conservation Law, tire retailers, including car dealers, must collect a fee of $2.50 on most new tires sold at retail within New York State. Retailers must remit $2.25 for each tire sold. This allows each tire retailer to retain 25 cents for each tire sold to cover administrative costs.
The Executive Budget proposes eliminating the December 31, 2010, sunset and expanding the purposes of the fund to ensure that adequate monies continue to be available to the Department of Environmental Conservation (DEC) for the regulation of waste tire storage facilities and abatement of noncompliant waste tire stockpiles. The fund would also be used to administer and enforce other provisions of the Environmental Conservation Law in relation to the collection, treatment, disposal and management of solid and hazardous wastes.
Chapter 62 of the Laws of 2003 called for the development of the New York State Waste Tire Stockpile Abatement Plan. Released in July 2004, the plan calls for the abatement of all noncompliant waste tire stockpiles by December 31, 2010. The clear intent of Chapter 62 of the Laws of 2003 was to have the fee sunset the same year the all noncompliant waste tire stockpiles were addressed.
The State has cleaned up already 120 tire dumps. Only 44 remain and, according to DEC, they should all be cleaned by the end of next year. The tire fee has raised $153 million, of which $83 million has been spent so far. The fee has served its purpose, and the responsible thing would be to eliminate the fee. Instead the Executive has proposed to extend this hidden tax.
The results of the fee are New York tire retailers are in a less than competitive situation; this result is many sales going to border state and internet sales. For New York consumers who have already paid $153 million isn't it time that this fee expires. For these reasons, Unshackle Upstate opposes the enactment of this legislation.