Featured Story from the July/August 2005 Today's Tire Industry

Tire Fees and Recycling: How Does Your State Compare?

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While I can't remember the exact day that I first explained the Tire User Fee (TUF), I do recall thousands of customers who wanted to know what the TUF charge represented. "The State of Illinois passed a law that requires all tire dealers to collect a $1 per tire TUF to fund recycling and clean-up operations. We don't see any of that money and it all goes to the state. The separate disposal fee is what we pay to have the tires removed because we can't send them to the landfill." Sound familiar?

Across North America, tire dealers have similar discussions every day to explain what's becoming a laundry list of fees and "extra" charges. Everyone has their own way of spinning it, but the story is still the same; the state gets the money and all of it is done under the pretense of "solving" the scrap tire problem.

'Federal officials have basically left scrap tire management and recycling to the individual states in the U.S., so the effectiveness of each program depends largely on politics.'

As we all know, if you bury a tire today and let it sit for one hundred years, it will still be a tire. It doesn't decompose or disintegrate over time, nor can it be compacted like other types of solid waste, like household trash. However, the components of a tire possess tremendous potential for being recycled into a wide range of usable products. The steel in the belt package and bead can be reused as steel, the rubber can be mixed with asphalt, and the fabric/rubber pieces can be used for playground surfaces and mulch. It hasn't reached the level of aluminum cans where recyclers actually pay money for the raw materials, but it definitely has the potential.

Federal officials have basically left scrap tire management and recycling to the individual states in the U.S., so the effectiveness of each program depends largely on politics. In states where most or all of the money collected goes directly toward tire recycling and tire pile clean-ups, there are few problems. But there are also states where a small portion or absolutely none of the money is used for anything related to scrap tire recycling. It has become just another way for the government to tax consumers in order to raise revenue for the general fund and make tire dealers the bad guys by forcing us to collect it.

I've been involved in the tire industry at the national level for more than nine years, and have always wondered what the "big picture" looks like when analyzing state recycling fees. So I enlisted the help of TIA's Tire and Rubber Recycling Advisory Council (TRRAC). They were able to provide a number of references and resources that helped me get my arms around the issue. And now I'm mad as hell!

'Every tire dealer and retreader has a vested interest in this issue, regardless of size or geography.'

Like most taxpayers, I'm tired of hearing reports of the "pork" projects that elected officials use to get themselves re-elected. Just the other day, I read a story about the hundreds of millions of dollars that are being spent to build bridges in Alaska that most of the citizens don't want. Of course, a few large companies and special interests are all for the projects and the Senator that brought them home will gladly accept the campaign donations as a thank you. When I saw the TRRAC Report Card on pages 7-8, I realized it wasn't just the Federal government that fleeces taxpayers. Here are just a few of the lowlights:

• Forty-eight states regulate scrap tires either through legislation or regulations adopted under state solid waste laws.
  
• Thirty-five states have tire fees.
  
• Eight states have raided scrap tire funds in the last three years to offset state budget shortfalls. They are California, Colorado, Florida, Georgia, Illinois, Maryland, Mississippi, and Tennessee.
  
• Tire fees in nine states are deposited into the state's general fund (environmental trust or highway department). They are Alaska, Hawaii, Maine, Nevada, Pennsylvania, Rhode Island, South Dakota, and West Virginia.
  
• Four states have increased their tire fees in the last four years. They are California, Illinois, Ohio and Virginia.
  
• Tire dealers collect scrap tire fees in twenty-six states.
  
• Tire fees are collected at the wholesale level in three states.
  
• Five states collect tire fees on vehicle registrations.
  
• Importers pay tire fees in Hawaii.
  
• Six states prohibit the collection of other tire disposal or environmental fees - Arkansas, Arizona, Louisiana, New York, North Carolina and Oklahoma.
  

SCRAP TIRE LAWS & REGULATIONS BY STATE: AL - MO (click to download) for updated 2007 chart - click here.

Every tire dealer and retreader has a vested interest in this issue, regardless of size or geography. Those of us in the United States should be concerned with how your state spends the money because we're collecting it, and those of you on the international front should be concerned that your government will learn from ours and see that they can boost revenues by forcing the tire industry to collect taxes for them.

Now I realize that the consumers ultimately pay in most instances, but the image of our industry suffers every time we add another fee or raise existing ones. Imagine how much easier it would be to explain to the customer that every cent of the fee/tax goes directly to scrap tire recycling and tire pile clean-up efforts. Resistance would even be less if there was no need for a disposal charge. It seems like an impossibility, but people once thought that plastics would sit in landfills for hundreds of years. If the millions of dollars in "tire" fees and taxes actually went to something even related to a "tire," it could become a reality.

Here's an idea: Make copies of the TRRAC Report Card (we give you permission) and hand them out to customers who don't like the charge. If you're not happy with the way the money is being spent, encourage your customers to mail the TRRAC Report Card with a letter to their elected official. If you're happy, hand it out and tell them to send it and thank them for being responsible. When consumers make noise, government listens. What have we got to lose?

As part of the world population, everyone must also accept responsibility for the health of the planet and do our part to ensure future generations have clean air to breathe and water to drink. Likewise, it's partly a moral and ethical obligation as an industry to take the necessary steps to ensure that scrap tires are properly recycled so the environment is not harmed or endangered. There are a number of ways that dealers and retreaders can fulfill that obligation.

The first step is to get involved at the local level by supporting your state, regional or provincial tire dealer association. All of these organizations monitor issues like tire fees and can lobby on your behalf. They can also provide you with the names and contact information for local officials who are responsible for scrap tire legislation should you wish to express the views of your company in person. TIA and TRRAC cannot possibly keep up with the day-to-day workings in each state or provincial government, but your local organization can if they have the necessary resources.

SCRAP TIRE LAWS & REGULATIONS BY STATE: MT - WY (click to download) for updated 2007 chart - click here.

Then, if the state, regional or provincial tire dealer association needs additional support, we can be in a position to react immediately to educate and inform the politicians and government officials from an international perspective. Just think about the possibilities if every dollar from every fee collected went towards recycling and tire pile clean-up. It could become a reality if every state or province had a strong presence at the local government level.

Which brings us to the second step, practice what you preach. In order for any product to be recycled, there must be a market for the end result. Scrap tires are currently used to manufacture rubber mats, landscaping mulch and other products that can be utilized in every dealership or retread plant. If the generators (dealers and retreaders) can help create demand for recycled rubber products, then the manufacturers of those products can invest in new technology. It's also important to make sure that the company who is responsible for collecting your scrap tires is properly licensed (if necessary) and handling them in a manner that is respectful of the environment. Saving a few dollars may come back to haunt you if the "bargain" collector is illegally dumping your tires and then skips town with your money leaving the paper trail back to you (see Waste Not, Want Not: Don't Get in the Dumps About Tire Disposal on pages 10-11).

The third and final step is to recognize the potential for a public relations nightmare and do something about it. Scrap tire piles are prime breeding grounds for mosquitoes that carry the West Nile Virus. Imagine the public backlash if a nationwide epidemic was linked to tires. It won't matter that this state and that state uses the tire fees for the general fund because the image of the industry as a whole will suffer. We've had enough bad publicity in the past few years to last a decade, so we don't want to willingly put ourselves in position for another potential disaster.

If you have stockpiles of casings or used tires stored outside, cover them or work with local abatement officials to ensure the area is sprayed. Sponsor an amnesty day for your customers to bring in any old tires they have laying around. Encourage local businesses, school boards, and city councils to use recycled rubber products and follow the example you've set with your company. We must demonstrate that we are willing to take the necessary steps to solve the problem, especially when the government is incapable or unwilling.

Your TIA membership helps support TRRAC so we can respond to local requests for assistance when scrap tire legislation is not fulfilling its intended purpose. Your membership also helps TRRAC sponsor conferences to educate and inform government officials so they understand how the issues affect tire dealers and retreaders. This publication includes a section on recycling so you can better understand what is being done to alleviate the environment of the hazards related to scrap tires. TIA is fighting the battle on many fronts to protect your business from legislation and litigation that may force you to pay for the illegal (or unethical in the case of government) activities of a few people who saw the opportunity to make a fast dollar off our industry. We're also making every effort to prevent you from becoming a tax collector who receives nothing in return for the fees your customers are being charged. But we've got a long road ahead of us and it all starts with membership. If you do your part, we'll do ours and everyone will win. Except the politicians who waste our money.