1. 1

2. Introduction Stephanie Glysson Republic owns and operates in Michigan:
Representing Republic Services of Michigan and Michigan Waste Industries Association
Republic owns and operates in Michigan:
Five municipal waste landfills
Six transfer stations
Eight hauling companies 2

3. Solid Waste Industry in Michigan
Responsible and responsive industry - good corporate citizens and community partners
Good neighbors in the communities where we work and live
At the front lines of environmental protection
Provide municipal recycling services (even though recycling has not been economically viable)
Recycling subsidized through landfill revenues 3

4. Tax Industry currently pays:
Solid Waste Industry
Tax Industry currently pays:
Host community fees by agreement
Statutory fees
Local ordinance fees
County fees
Licensing fees
Administration fees
Permit fees
Fund the same recycling services proposed in this bill
These fees assessed upon the same ton of garbage 4

5. Impact of HB 6211 Places flow control taxes in a garbage bill
Creating an additional burden to Michiganians primarily on Michigan businesses and industries
Consumer ultimately paying the price 5

6. Fiscal Impact of HB 6211
Michigan generates almost 16,500,000 million tons of trash per year
An increase of $3 per ton would cost Michigan an added $50 million a year 6

7. Failings of HB 6211
Misses increased costs of goods and services
Cost to businesses would be severe
Industrial and food manufacturers
Travel and tourism enterprises such as amusement parks and hotels
The residential and commercial construction industry
Schools and hospitals
Government
Businesses will pass the increase along to consumers
Michiganians will PAY twice. 7

8. Certainties of HB 6211
Bill punishes those communities and businesses already funding their own recycling
Increasing tipping fees will NOT limit out-of-state waste.
Ohio, Indiana and Illinois likely adjust their fees to maintain the status quo
Prices for the same services rendered will increase
Michigan residents and businesses will pay more for traditional waste services
Waste will continue to be protected by NAFTA and the Commerce Clause of the US Constitution - prohibits state and local governments from banning or limiting its movement. 8

9. Needed Measures Design for recyclability
Provide incentives for market development
Promote accountability
Close the loop.  9

10. Replacement for HB 6211
Cost of doing business in Michigan is high enough
Raising taxes on trash is an inappropriate way to address recycling participation
Will have long-term, adverse consequences on Michigan's economy
Recycling must be economically viable and not subsidy dependent. 10

11. Issues Who pays? Who benefits?
None of these funds are dedicated to waste related program costs. This levy is clearly a “trash tax” and not a “user fee”.
Fails to allocate funds to critical solid waste needs.
Makes key environmental programs in Michigan dependent upon waste generation.
Penalizes those communities that have long stepped up to the responsibility and cost of sustainable waste management.
Recycling should be economically viable.
Programs will be subsidy dependent
Will not deter Out-of-State Waste.
Imposes no tax on Incinerators.
Encourages incineration and discriminates arbitrarily against waste that is landfilled.
Who pays? Who benefits? 11

12. HB 6211 Introduced by State Rep. Kooiman
Impose a $3.00 tax on each ton of trash landfilled.
Minimum of $60 million raised per year
(based upon waste disposed in MI landfills for 2001).
To increase recycling participation in the State
To discourage out of state/out of country importation.
Will create a new Waste Diversion Fund within the State Treasury. 12

13. Waste Diversion Fund
Michigan Department of Environmental Quality expends Waste Diversion Funds as follows:
$1,200,000 annually for administration of the fund…
The remainder of the money would be expended as follows:
One-third for recycling program grants to local units of government for new programs
One-third for non-governmental/organizations recycling initiative grants to expand recycling participation
One-third for recyclable market development. 13

14. Annual Tax Distribution
New Local Recycling Grants
32%
NGO Recycling Grants
33%
Market Development Grants
MDEQ Administration 2% 14

15. Trash Tax Sources
Canada 10%
Out of State 10%
Michigan
80% 15

16. Tax Impact 80% of funding from inside Michigan
53% of the revenue will be generated from eleven (11) counties (out of 83)
With a proposed decrease in State revenue, many municipalities can ill afford an additional tax burden. Municipal taxes will be raised.
Commercial and Industrial will get hit the hardest.
Cost for goods and services will increase hence raising the costs to consumers.
Michiganians will pay TWICE 16

17. Genesee Trash Tax Annual Tax Total Residential Commercial/ Industrial$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Annual Tax
Total
Residential
Commercial/
Industrial 17

18. Ingham Trash Tax Annual Tax Total Residential Commercial/ Industrial$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Annual Tax
Total
Residential
Commercial/
Industrial 18

19. Kalamazoo Trash Tax Annual Tax Total Commercial/ Industrial$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
Total
Commercial/
Industrial
Residential 19

20. Kent Trash Tax Annual Tonnage Incinerated Total $ to Kent County
The majority of Kent County’s trash is incinerated. There will be no TAX on materials incinerated. Hence, the cost to Kent County will be minimal.
Incinerated
Total $ to Kent County
Landfilled 20

21. Livingston Trash Tax Annual Tax Total Residential Commercial/$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Total
Residential
Commercial/
Industrial 21

22. Monroe Trash Tax Annual Tax Total Residential Commercial/ Industrial$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Annual Tax
Total
Residential
Commercial/
Industrial 22

23. Macomb Trash Tax Annual Tax Total Residential Commercial/ Industrial$0
Annual Tax
$500,000
$1,000,000
$1,500,000
$2,000,000
Total
Residential
Commercial/
Industrial 23

24. Oakland Trash Tax Annual Tax Total Commercial/ Industrial Residential$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Annual Tax
Total
Commercial/
Industrial
Residential 24

25. Saginaw Trash Tax Annual Tax Total Commercial/ Industrial Residential$0
Annual Tax
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Total
Commercial/
Industrial
Residential 25

26. Washtenaw Trash Tax Annual Tax Total Commercial/ Industrial$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Annual Tax
Total
Commercial/
Industrial
Residential 26

27. Wayne Trash Tax Annual Tax Total Commercial/ Industrial Residential$0
Annual Tax
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Total
Commercial/
Industrial
Residential 27

28. Commercial/Industrial
Waste Type
(Tons)
County
Residential
Commercial/Industrial
Genesee
252,054
Ingham
256,635
Kalamazoo
127,392
Kent
361,715
Livingston
84,272
Macomb
436,179
Monroe
77,636
Oakland
834,501
Saginaw
101,651
Washtenaw
186,202
Wayne
1,704,039
TOTAL
4,422,275
*Year 2003
**Year 2003
Other
Total
423,124
426,715**
183,446
395,765
210,605
1,052,295
128,272
84,965
719,396*
140,416**
305,021
2,031,218*
260,668
669,957
3,990,055
784,037
10,237,881 -
171,071
170,080
84,927
479,975
44,001
198,252
261,032
891,696
159,017
483,755
2,286,016
5,031,569 28

29. Commercial/Industrial
Trash Tax
County
Residential
Commercial/Industrial
TOTAL
$ 13,266,825 $
$ 2,352,111
$30,713,643
Genesee
$ ,161
$ ,211
$ 1,269,372
Ingham
$ ,906
$ 1,023,451
$ 1,280,146
Kalamazoo
$ ,176
$ ,781
$ 550,338
$ 1,187,295
Kent
$ 1,085,145
$ 2,463,376
$ 631,815
$ 3,156,885
Livingston
$ ,815
$ 2,595,378
$ ,817
Macomb
$ 1,308,537
$ ,756
$ 254,895
$ 2,158,188
Monroe
$ ,907
$ ,340
$ ,247
Oakland
$ 2,503,503
$ 2,675,088
$ 915,063
$ 6,093,654
Saginaw
$ ,953
$ ,051
$ ,004
Washtenaw
$ ,606
$ 1,451,265
$ 2,009,871
Wayne
$ 5,112,116
$ 4,106,697
$11,970,164 -
Other
Total 29

30. Residential Waste Trash Tax$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Annual Tax
TOTAL
Wayne
Oakland
Macomb
Genesee
Ingham
Kalamazoo
Washtenaw
Livingston
Monroe
Saginaw 30

31. Industrial Trash Tax Annual Tax $8,000,000 $7,000,000 $6,000,000$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Annual Tax
TOTAL
Wayne
Washtenaw
Genesee
Ingham
Macomb
Oakland
Livingston
Monroe
Saginaw
Kalamazoo 31

32. Commercial Trash Tax Annual Tax $9,000,000 $8,000,000 $7,000,000$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Annual Tax
TOTAL
Wayne
Oakland
Washtenaw
Genesee
Ingham
Kalamazoo
Macomb
Saginaw
Livingston
Monroe 32

33. Total Trash Tax Annual Tax $35,000,000 $30,000,000 $25,000,000$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Annual Tax
TOTAL
Wayne
Oakland
Gr. Trav
Macomb
Washtenaw
Genesee
Ingham
Kalamazoo
Livingston
Monroe
Saginaw 33

34. Tax Distribution Grants benefit only those not currently recycling
Money will flow out of communities where waste is generated 34

35. Tax Benefit?
Current recycling already high (20% net, 17% reported by MDEQ)
Will not discourage out-of-state waste 35

36. Impact on Businesses and Consumers
Increase waste disposal costs = higher costs
Increase local taxes = higher costs
Lower discretionary spending
Lower consumer spending
Less investment in Michigan
Metro Detroit’s money will follow to Detroit 36

37. 37