September 25, 2017 - Weekly Legislative Update

Your Action Needed to Save LIFO

Tax reform has been on the front burner in Washington all year and became the GOP's top priority when their effort to repeal Obamacare failed. Last week it was announced that, sometime during the week of September 25th, the key players in the tax reform effort will release a tax reform proposal, or at least an outline for reform.

Once they release their outline, the House and Senate tax-writing committees will begin developing specific tax reform legislation to be considered by each house of Congress.  This process could begin as early as mid-October. Although this schedule is not certain and there's a chance the timing could slip, that is not a chance we can take.  We need companies that use LIFO to get involved today.

It is clear that tax writers are intently looking for "pay-fors" - sources of new tax revenue that can be raised to offset the revenue that will be lost by the reduction of business income tax rates.  Among some tax writers, any and all tax provisions that could raise revenue are on the table, LIFO repeal included.  In some cases, there are indications that a decision has already been made to include LIFO repeal in any tax reform package.

Key members of the Senate Finance and House Ways and Means Committees MUST hear from businesses in their states and districts urging their opposition to LIFO repeal and explaining how repeal would negatively impact the employers and workers in their districts/states - their voting constituents. 

It is vitally important that these key tax-writers hear from constituent businesses in their states/districts in the next few weeks - before a fully-developed tax reform proposal is released by the House Ways and Means Committee. 

There are key members of the House and/or Senate in the following states: Arizona, California, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Minnesota, Nebraska, Nevada, New York, North Carolina, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, and Wyoming.  If you have operations in ANY of these states, we need your participation in this effort.

We have identified the locations and contact information for the district and state offices of each of these key tax writers.  Senators of course represent their entire state, and we have identified the general location of each of the Congressional Districts so you can see if you have operations in or near their districts. To view and print the list, go to:

https://www.naw.org/files/StateOffices.pdf 

Here's what we need you to do:

**If you have a personal relationship with any of these Senators and/or House members, please contact those members ASAP. That is the most effective outreach.

**If you do not already have a relationship with any of these members of Congress...

  1. Ideally, call or write to the Congressional offices which are located closest to your company operations and request a meeting with an appropriate staff member to discuss LIFO, or
  2. Send letters or faxes to each relevant office urging the members to oppose LIFO repeal

A personal meeting is the most effective way to reach out to members of Congress - their state and local district office staffs will communicate constituent concerns to their bosses.   Next best is to send a letter or fax to a local office.  Least effective - but better than nothing - is a phone call to an office.

In each instance please identify your company as a constituent business and employer, and explain how repeal of LIFO would negatively impact your business - and the local economy.   Please provide as much detail as possible - if LIFO is repealed you will have to lay off workers, postpone an investment, reduce or eliminate contributions to your workers' retirement or health care plans...etc.   Members of Congress and their staffs will always listen to their constituents' concerns.

The LIFO Coalition has prepared a succinct two-page "Fact Sheet" addressing the key issues in this ongoing debate; to view and print the fact sheet, go to:

https://www.naw.org/files/FactSheet.pdf 

Here's what we need you to do:

**If you have a personal relationship with any of these Senators and/or House members, please contact those members ASAP. That is the most effective outreach.

**If you do not already have a relationship with any of these members of Congress...

  1. Ideally, call or write to the Congressional offices which are located closest to your company operations and request a meeting with an appropriate staff member to discuss LIFO, or
  2. Send letters or faxes to each relevant office urging the members to oppose LIFO repeal

A personal meeting is the most effective way to reach out to members of Congress - their state and local district office staffs will communicate constituent concerns to their bosses.   Next best is to send a letter or fax to a local office.  Least effective - but better than nothing - is a phone call to an office.

In each instance please identify your company as a constituent business and employer, and explain how repeal of LIFO would negatively impact your business - and the local economy.   Please provide as much detail as possible - if LIFO is repealed you will have to lay off workers, postpone an investment, reduce or eliminate contributions to your workers' retirement or health care plans...etc.   Members of Congress and their staffs will always listen to their constituents' concerns.

The LIFO Coalition has prepared a succinct two-page "Fact Sheet" addressing the key issues in this ongoing debate; to view and print the fact sheet, go to:

https://www.naw.org/files/FactSheet.pdf 

And there is a lot of additional information available on The LIFO Coalition's website: 

www.savelifo.org 

Thank you all!  And PLEASE do this ASAP.  We are more threatened today than we have been in years!

Please let TIA know what offices you contact and what responses you get from the member of Congress and/or staff.

 

PRELIMINARY DRAFT:

LETTER TO TIRE STORES AND INDUSTRY STAKEHOLDERS

COLORADO WASTE TIRE PROGRAM CHANGES

 

The following is the preliminary draft letter that may be sent to all waste tire fee payers in Colorado as an informational notice to help smooth the transition from the state's current rebate-based waste tire program to a free market.  The purpose of the letter is for the Colorado Department of Health and Environment (CDPHE) to educate the tire stores and haulers in the state that change is taking place, i.e., the rebates which have supported disposal costs in the state are going away and will need to be replaced someplace.

We would like to get comments and input for TIA's Environmental Advisory Committee.  Let us know if the information is clearly presented, whether additional details are needed, etc.   E-mailed comments would be good but we can also set a conference call with you.

The Colorado waste tire management program is changing significantly as of January 1, 2018.  These changes will impact most stakeholders, including tire retailers, waste tire haulers, processors, monofills and end use markets.  The changes are being made in accordance with provisions within (insert legal definition of bill and date) requiring all market development activities to cease on December 31, 2017, including all end user reimbursements and market development efforts administered by the Colorado Department of Public Health and Environment (CDPHE).

Major changes and their projected impact include:

End User Reimbursements - Payments made to end users of tire-derived products allowed these products to be economically competitive and allowed tire retailers to enjoy tire removal and disposal costs significantly below the national average.  CDPHE expects to pay approximately $ (insert estimated amount) in reimbursements in 2017and $0 in 2018.

State Waste Tire Fee Reduction - Reflecting this reduction in state expenditures, the Waste Tire Management Fee (insert correct name if wrong) charged to the consumer will decrease from the current  $1.50/tire to $0.55/tire (a reduction of $0.95/tire) as of January 1, 2018.

Waste Tire Hauling and Disposal Fees - The waste tire management industry operates on close margins, so loss of reimbursement revenue must be recovered by increasing charges for hauling and processing waste tires or the businesses will fail.  2017 reimbursements represent and average of $       /tire sold in 2017, but actual impact on each company may vary.  As a result, store charges for waste tire disposal passed on to the consumer will increase to reflect the store's higher cost.  The net impact of the state fee reduction and the retailer's disposal charge increase may be consumer neutral.

Other CDPHE Waste Tire Program Responsibilities - Other CDPHE program activities will continue, including fee collection, registrations and enforcement.  CDPHE may increase enforcement and prosecution of offenders to control and reduce illegal activities and create a level enforcement field for all industry participants.