Advocacy News – April4, 2024
What’s happened: This week the Michigan Chamber hosted a coalition kick-off meeting to discuss opposition to a proposal to increase the state’s tipping fee. The proposal, which was part of Governor Whitmer’s 2024-25 budget presentation, calls for an increase from the current rate of $0.36 cents per ton to $5 per ton — representing an increase of over 1000%.
What we’re saying: The MI Chamber strongly opposes the proposal for several reasons:
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This so-called tipping fee — which is more so a tax than fee — will be borne by all Michigan residents, as a previous Michigan Supreme Court decision stipulates fees must be voluntary. Since waste disposal is a critical service every Michigander must use, the proposal does represent a significant tax increase.
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Additionally, this tax on trash will disproportionately affect large manufacturers and energy intensive industries that have large volume waste disposal, some of which come from pollution controls like dust filters to comply under environmental law. For some businesses, this could be hundreds of thousands (or even millions) of dollars in additional operating costs.
What’s next: The bill proposal is expected to be introduced in the coming weeks, at which point formal discussions with the legislature will begin. Should it move forward, the MI Chamber will continue to voice concerns and work to ensure that lawmakers understand the negative effect the issue would have on Michigan’s competitiveness and economic development.
For more information, contact Mike Alaimo at malaimo@michamber.com