Bottled Water Tax Set to Begin in New York
By Jim Willis on Sep 29, 2009 in Environment, Government & Politics, Taxes & Spending | Printable Version
I live in New York where everything is taxed. So when there was a recent national outcry over the Federal government proposing cow-farting taxes on farmers because the eco-nuts have finally gone berserk…I was unfazed. In our state everything gets taxed sooner or later. Now it’s water. Hey, farting, water, maybe we’ll tax oxygen next, right?
Specifically, New Yorkers are about to be taxed on water in bottles, or if you will, on the bottles themselves. From the Press & Sun-Bulletin in a story titled, “Area stores bracing for flood of bottles“:
Local supermarkets and convenience stores say they’re preparing for a major increase in the number of plastic bottles redeemed when a new state law goes into effect adding a 5-cent deposit to bottled water.
[R]etailers in this region are getting ready for the most significant increase in the flow of redeemable products in years.
More than 3.2 billion water bottles are sold in New York each year, according to the Container Recycling Institute.
Bottled water constitutes about a third of the retail beverage market, though industry studies project huge growth over the next several years.
Some 20-odd years ago when New Yorkers collectively jumped off the cliff (forget slippery slopes) of putting a “deposit fee” on soda cans and bottles, it was supposedly to encourage the behavior of recycling. Guess what, everyone recycles today. No, we don’t always return the cans to the grocery store or redemption center to get our nickles back, but we’ll throw them in the yellow recycling bin on garbage day. That’s just what the politicians want! They want you to pay the deposit fee, and then never redeem it. Why? Because all 80% of the uncollected deposit fees go (where do you think?)… that’s right, to the New York State common treasury.
Politicians LOVE deposit fees–let’s call them what they really are, taxes–because it’s a magical source of new revenue for them to spend. And politicians derive and maintain their power by spending money.
Instead of expanding the bottle tax to 1/3 more of the bottles found in stores (bottles of water), the state should repeal the deposit tax on ALL bottles. Our behavior in recycling has changed–reward that change in behavior by giving people a break! But no…that revenue stream to our state politicians is like a fix for a heroin addict. No way they’re giving it up, man.
Two predictions: (1) After this tax goes into effect, sales of bottled water in New York will decrease. That 3.2 billion bottles of water sold in New York each year is going to go down, not up. Consumers will not appreciate paying an extra $1.20 per package of 24 water bottles you buy in Sam’s Club or Costco. (2) Now that state politicians have successfully expanded this insidious law from soda and flavored drinks to plain water, they will next eye cans and containers of all kinds. “Hey, how about a nickle fee on every can of soup, tin of beans, or box of cereal!” I can hear it already. Politicans will eye the grocery store as the new source of revenue to feed their insatiable appetites.
Word of advice: If you’re visiting New York, be sure to bring your own bottled water.
Technorati Tags: bottle deposit, New York bottle law, bottled water

Jim Willis | Sep 30, 2009 | Reply
Update from an editorial in the Press & Sun-Bulletin (Sept. 30). The state treasury will keep 80% (not 100%) of the bottle deposits not claimed:
“Long before the bill was approved in the 2009 session, opponents to the bill warned about the extra cost of handling the bottles and how that would add to the price of bottled water. They advocated instead that governments do a more aggressive job of curbside recycling to encourage proper disposal of the bottles and cut down on clutter in the environment.
“But the financial incentive for cash-strapped New York made this bill as fiscally attractive as it was environmentally sound. The state will keep 80 percent of unclaimed deposits on all bottles and cans of beverages. The manufacturers, who currently get all the unclaimed deposit money, will get 20 percent – a fact they have said would further add to the cost of their products.”