GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 1066

Short Title:  Nonrecycling Plastics Producers Pay.	(Public)

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Sponsors: Representative Luebke.

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Referred to:  Business & Labor, if favorable, Finance.

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May 15, 1995

A BILL TO BE ENTITLED
AN ACT TO IMPOSE A DISPOSAL TAX ON CONTAINERS THAT FAIL TO RECYCLE SUFFICIENTLY AND TO DISTRIBUTE THE REVENUE FROM THE DISPOSAL TAX ON CONTAINERS TO THE SOLID WASTE MANAGEMENT TRUST FUND.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 130A-290(a) is amended by adding two new subdivisions in the appropriate alphabetical order to read:
"(4a)	'Container' means the individual, separate, and sealed glass, plastic, plastic-coated paper, steel, aluminum, or other metal can, bottle, jar, or container, including containers composed of more than one material, which is not less than five ounces or greater than one gallon by volume in capacity and in which the contents have been sealed by the manufacturer.  The term does not include containers for medical devices, drugs, medicine, or other medical items.
(4b)	'Container material type' means the material used in the manufacture of a container, including plastic, glass, plastic-coated paper, steel, aluminum, or other metals."
Sec. 2.  Effective July 1, 1996, Chapter 105 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 5D.
"Disposal Tax on Containers.
"§ 105-187.30.  Definitions.
The definitions in G.S. 105-164.3 apply to this Article and the following definitions apply to this Article:
(1)	Container. – Defined in G.S. 130A-290(a)(4a).
(2)	Container material type. – Defined in G.S. 130A-290(a)(4b).
(3)	Sustained recycling rate. – Defined in G.S. 130A-309.06(d).
"§ 105-187.31.  Tax imposed.
(a)	Tax. – A privilege tax is imposed on a retailer at a flat rate for each container that is sold by the retailer.  An excise tax is imposed on a container purchased outside the State for storage, use, or consumption in this State.  The rate of the privilege tax and the excise tax is three cents ($0.03) for each container.  This tax is in addition to all other taxes.
(b)	Exemptions. – Reuseable and refillable containers are exempt from this tax.  Containers in a container material type that have a sustained recycling rate that meets or exceeds the following percentages are exempt from this tax:
Container Material Type	Percentage Rate
Glass & Aluminum  	35%
Paper	30%
Plastic, Steel, & Metal 	25%.
"§ 105-187.32.  Administration.
The privilege tax this Article imposes on a retailer is an additional State sales tax and the excise tax this Article imposes on the storage, use, or consumption of a container in this State is an additional State use tax.  Except as otherwise provided in this Article, these taxes shall be collected and administered in the same manner as the State sales and use taxes imposed by Article 5 of this Chapter.  As under Article 5 of this Chapter, the additional State sales tax paid when a container is sold at retail is a credit against the additional State use tax imposed on the storage, use, or consumption of the same container.
"§ 105-187.33.  Use of tax proceeds.
The Secretary shall distribute the net tax proceeds collected under this Article to the Solid Waste Management Trust Fund on a quarterly basis."
Sec. 3.  Effective July 1, 1998, G.S. 105-187.31, as enacted by this act, reads as rewritten:
"§ 105-187.31.  Tax imposed.
(a)	Tax. – A privilege tax is imposed on a retailer at a flat rate for each container that is sold by the retailer.  An excise tax is imposed on a container purchased outside the State for storage, use, or consumption in this State.  The rate of the privilege tax and the excise tax is five cents ($0.05) for each container.  This tax is in addition to all other taxes.
(b)	Exemptions. – Reuseable and refillable containers are exempt from this tax.  Containers in a container material type that have a sustained recycling rate that meets or exceeds the following percentages are exempt from this tax:
Container Material Type	Percentage Rate
Glass & Aluminum	50%
Paper	40%
Plastic, Steel, & Metal 	30%."
Sec. 4.  G.S. 130A-309.06(d) reads as rewritten:
"(d)	The Department of Environment, Health, and Natural Resources shall prepare by March 1, 1994, and every other year thereafter, a report assessing the recycling industry and recyclable materials markets in the State.  The report shall include the sustained recycling rate for each container material type.  The sustained recycling rate is the average recycling rate for a container material type, expressed as a percentage, for a period of at least 12 consecutive months.  The sustained recycling rate for plastics shall be calculated by type of plastic, according to industry codes.  The Department shall notify the Department of Revenue of the sustained recycling rate for each container material type."
Sec. 5.  G.S. 130A-309.12 reads as rewritten:
"§ 130A-309.12.  Solid Waste Management Trust Fund.
(a)	The Solid Waste Management Trust Fund is created and is to be administered by the Department for the purposes of:
(1)	Funding activities of the Department to promote waste reduction and recycling including but not limited to public education programs and technical assistance to units of local government;
(2)	Funding research on the solid waste stream in North Carolina;
(3)	Funding activities related to the development of secondary materials markets;
(4)	Providing funding for demonstration projects as provided by this Part; and
(5)	Providing funding for research by The University of North Carolina and independent nonprofit colleges and universities within the State which are accredited by the Southern Association of Colleges and Schools as provided by this Part.
(b)	(Effective until June 30, 1997) The Solid Waste Management Trust Fund shall consist of the following:
(1)	Funds appropriated by the General Assembly.
(2)	Contributions and grants from public or private sources.
(3)	Five percent (5%) of the proceeds of the scrap tire disposal tax imposed under Article 5B of Chapter 105 of the General Statutes.
(4)	(Repealed effective July 1, 1999) Five percent (5%) of the proceeds of the white goods disposal tax imposed under Article 5C of Chapter 105 of the General Statutes.
(5)	The proceeds of the container disposal tax imposed under Article 5D of Chapter 105 of the General Statutes.
(b)	(Effective June 30, 1997) The Solid Waste Management Trust Fund shall consist of the following:
(1)	Funds appropriated by the General Assembly.
(2)	Contributions and grants from public or private sources.
(3)	Ten percent (10%) of the proceeds of the scrap tire disposal tax imposed under Article 5B of Chapter 105 of the General Statutes.
(4)	(Repealed effective July 1, 1999) Five percent (5%) of the proceeds of the white goods disposal tax imposed under Article 5C of Chapter 105 of the General Statutes.
(5)	The proceeds of the container disposal tax imposed under Article 5D of Chapter 105 of the General Statutes.
(c)	The Department shall report annually on or before 1 September to the Environmental Review Commission as to the condition of the Solid Waste Management Trust Fund and as to the use of all funds allocated from the Solid Waste Management Trust Fund."
Sec. 6.  Section 4 of this act becomes effective January 1, 1996.  Sections 2 and 5 of this act become effective July 1, 1996.  Section 3 of this act becomes effective July 1, 1998.  The remainder of this act is effective upon ratification.