Community Corner
Massachusetts Beverage and Beer Companies Join Union Workers in Call to Action Against Hidden Tax Hike
Urge consumers to oppose costly increase in bottle bill handling fee,
Send letters and emails to Patrick Administration
BOSTON (March 21, 2013) – Massachusetts beverage and beer companies today joined union workers from both industries in a call to action against a staggering 44-percent increase in the state’s bottle bill handling fee. The hidden tax being quietly pushed by Gov. Deval Patrick’s Administration would raise prices on consumers, hurt dozens of small businesses and place good jobs at risk – all for a policy that will not result in a single additional container being recycled.
Find out what's happening in Graftonfor free with the latest updates from Patch.
The state’s Executive Office of Energy and Environmental Affairs is considering a proposal to raise the fee that bottlers and wholesalers are required to pay redemption centers from 2.25 cents per container to 3.25 cents – a 44 percent increase. Comments on the proposal are due to the EOEEA by close of business on Friday, March 22.
Find out what's happening in Graftonfor free with the latest updates from Patch.
“Good jobs are what our economy needs most. And that’s what the beverage and beer industries deliver to all of Massachusetts,” said Gary Miner, Treasurer of Local 513 of the Retail, Wholesale and Department Store Union/UFCW “The Administration needs to hear that, and pay attention to what’s best for workers and consumers alike.”
The handling fee increase is an attempt to bolster the state’s bottle bill – a costly, inefficient and outdated system for recycling. The 44 percent increase in the handling fee amounts to $14 million in transfer payments from beverage companies that support thousands of quality jobs to the state’s dwindling number of redemption centers.
“This is an unexpected and unplanned tax that will create a significant financial burden for the many small breweries who self-distribute,” said Rob Martin, President of the Massachusetts Brewers Guild and founder of Ipswich Ale Brewery. “The handling fee hike represents the cost of two full-time drivers. And I guarantee I’m not alone in my preference to hire more people or make other capital investments rather than pay out this increased subsidy.”
While being pushed as an environmental measure, there is no promise or even expectation of any increase in recycling. In states like Maine and New York, a similar proposal significantly increased fraud while recycling rates remained the same.
In Massachusetts, a 2011 audit of cans redeemed at the Haverhill Redemption Center found that close to 50 percent of cans audited had been unlawfully presented for redemption – as they did not have deposit labels on the cans, according to testimony provided to the EOEEA. An increase in the handing fee creates an economic incentive for redemption centers and individuals from Massachusetts and other states to create fraud against the Commonwealth and beverage distributors.
“The cost of fraud is not only our expense but also our consumers, through higher prices,” said Ray Dube, Sustainability Manger for the Coca-Cola Bottling Co. “That’s on top of the loss in business to the economy which directly relates to jobs.”
The EOEEA hearing was held to consider the proposed handling fee increase, which the Patrick Administration is quietly pushing on top of an already massive $1.9 billion tax hike agenda. Massachusetts lawmakers have repeatedly turned back efforts to expand the outdated bottle bill, which was implemented in 1983.
“The Patrick Administration has a tremendous appetite for tax increases. But Massachusetts consumers don’t need another tax, even if you call it by another name,” said John Stasiowski, President of the Beer Distributors of Massachusetts. “This is a money grab that will have zero impact on recycling in Massachusetts. People are already paying too much for gas, medical care and other essentials. They just can’t take another hit.”
Bay State consumers can demand their voice be heard in opposing this hidden tax by submitting comments to the Executive Office of Energy and Environmental Affairs. The deadline for comments is close of business on Friday, March 22. Comments should be submitted via email to Daniel.Sieger@state.ma.us or mailed to: Dan Sieger, Executive Office of Energy and Environmental Affairs, 100 Cambridge Street, Suite 900, Boston, MA 02114.
###