NJ Recycle Tax Sent to Governor for Approval

A program that could provide upwards of $10 million a year to counties and municipalities for recycling and anti-litter efforts was approved by the state Assembly Monday, clearing the way for Gov. James E. McGreevey's final OK.

The Assembly vote of 57-10, with nine members abstaining and four not voting, reauthorizes the Clean Communities Fund business tax on manufacturers and retailers of glass, metal and paper products, plus a dozen other litter-causing items. The tax was first levied in 1985, but the fund expired at the end of 2000 and previous attempts to revive it failed.

"Since the tax has lapsed, we've been recycling less and the amount of trash we're throwing out is more," said New Jersey Sierra Club leader Jeff Tittel, who expects McGreevey will approve the law. "And since those who generate the litter pay the tax, it follows the principle of polluter pay," similar to the federal Superfund program, Tittel said.

Municipalities across the state have used money from the fund to pay for local environmental coordinators, school and community clean-ups, graffiti removal and street sweepers. Administered by the state Department of Environmental Protection, these efforts also help prevent flooding -- by keeping drains free of litter -- and keep tourist dollars flowing, Tittel added.

The proposal, with four legislative sponsors and about 40 co-sponsors, would award money to towns and counties based on the number households they support and the miles of roadway they must keep clean. Ten percent of the fund will go to keeping state sites litter free.

According to the non-partisan Office of Legislative Services, the tax would bring in between $14 million and $16 million a year. Because the plan is retroactive to Jan. 1, 2002, litter-producers will also pay in $7 million to $8 million for this year's products.

"I don't think tiny, little taxes on large corporations are a good way to run government," said Assemblyman Guy Gregg, R-Sussex, who voted against the plan. "I'm all for clean communities, but I don't think this is the right way to fund it," said Gregg, who proposed a plan to offer similar grants from the general fund.

The proposal adopted Monday was introduced in March and the Assembly passed the measure in June. The Senate approved a version of the plan last week, but because it contained some changes regarding take-out restaurants the plan had to be returned to the Assembly.

Businesses are taxed according to the following rates: wholesale companies that make litter-causing products would pay $300 per $1 million in sales; retail distributors of these products, including restaurants, would pay $225 per $1 million in sales.