A
landfill tax or
levy is a form of
taxTo tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
that is applied in some countries to increase the cost of
landfillA landfill site , is a site for the disposal of waste materials by burial and is the oldest form of waste treatment...
. The tax is typically levied in units of currency per unit of weight or volume (£/t, E/t, $/yard³). The tax is in addition to the overall cost of landfill and forms a proportion of the
gate feeA gate fee is the charge levied upon a given quantity of waste received at a waste processing facility.In the case of a landfill it is generally levied to offset the cost of opening, maintaining and eventually closing the site. It may also include any landfill tax which is applicable in the region...
.
Reasons for landfill tax
A tax or fee may be imposed on landfills or other disposal facilities as a means of raising general revenues, to generate funds for inspection programs or long-term mitigation of environmental impacts related to disposal, or as a means of inhibiting disposal by raising the cost in comparison to preferable alternatives, in the same manner as an excise or "
sin taxA sin tax is a kind of sumptuary tax: a tax specifically levied on certain generally socially proscribed goods and services. These goods are usually alcohol and tobacco, but also include candies, soft drinks, fat foods and coffee, while services range from prostitution to...
".
Landfilling is discouraged due to a number of key reasons:
- Climate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...
caused by landfill gasLandfill gas is a complex mix of different gases created by the action of microorganisms within a landfill.-Production:Landfill gas production results from chemical reactions and microbes acting upon the waste as the putrescible materials begins to break down in the landfill...
from biodegradable wasteBiodegradable waste is a type of waste, typically originating from plant or animal sources, which may be degraded by other living organisms. Waste that cannot be broken down by other living organisms are called non-biodegradable....
- Loss of resources
- Constraints on areas suitable for landfill sites
- Loss of recyclable components of waste landfilled
- Nimby
NIMBY or Nimby is an acronym for the phrase "not in my back yard". The term is used pejoratively to describe opposition by residents to a proposal for a new development close to them. Opposing residents themselves are sometimes called Nimbies...
objections causing political problems
New Zealand
In
New ZealandNew Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
the
Waste Minimisation Act 2008The Waste Minimisation Act is an Act of Parliament passed in New Zealand in 2008.It was a Private Members Bill introduced by Mike Ward. The major provisions of the Act are: a levy on landfill waste, promoting product stewardship schemes, some mandatory waste reporting, clarifying the role of...
allowed for the charging of a landfill levy. Half of the landfill levy goes to local authorities with the other half going into a Waste Minimisation Fund. As of 2010 it is set at $10 a tonne but it can be reviewed by the Minister for the Environment.
United Kingdom
The UK Landfill Tax was introduced in 1996 by Conservative Secretary of State for the Environment,
John GummerJohn Selwyn Gummer, Baron Deben, PC is a British Conservative Party politician, formerly Member of Parliament for Suffolk Coastal, now a member of the House of Lords. He is Chairman of the environmental consultancy company Sancroft International and Chairman of Veolia Water...
, and was the UK's first environmental tax.
Landfill tax is seen as a key mechanism in enabling the UK to meet its targets set out in the
Landfill DirectiveThe Landfill Directive, more formally Council Directive 1999/31/EC of 26 April 1999 on the landfill of waste, is a European Union directive issued by the European Union to be implemented by its member states....
for the landfilling of biodegradable waste. Through increasing the cost of landfill, other
advanced waste treatment technologies with higher gate fees are made to become more financially attractive.
The amount of tax levied is calculated according to the weight of the material disposed of and whether it is active or inactive waste.
- Inactive (or inert) , (Inert is not the same as Inactive, Inactive covers a lot more classifcations than Inert, though Inert does come under the classification of Inactive)waste covers most materials used in a buildings fabric as well as earth excavated for foundations. Most forms of concrete, brick, glass, soil, clay and gravel are classified as inactive.
- Active waste covers all other forms of waste such as wood, ductwork, piping and plastics.
Inevitably there will be some mixing of waste such as inert bricks and concrete mixed with small amounts of wood or mineral dust packaged in polythene bags. It is for the producer of the waste to decide what is reasonable and acceptable in terms of active waste contamination of inert waste.
The landfill site operator is responsible for paying landfill tax. However, operators will pass the cost on to businesses and local councils on top of normal landfill fees. VAT is charged on the landfill fees and the landfill tax.
Landfill tax rates 2010-2011
- Standard rate for active waste: £48 per tonne (2010/2011)
- Lower rate for inactive waste: £2.50 per tonne (2010/2011)
Sections from the coalition government Emergency Budget 2010:
- 2.128 The standard rate of landfill tax will increase by £8 per tonne each year from 1 April 2011 until at least 2014. There will be a floor under the standard rate at £80 per tonne, so that the rate will not fall below £80 per tonne from April 2014 until at least 2020.
- 2.129 New qualifying criteria for lower rated wastes will be legislated in the Finance Bill introduced in the autumn (2010), to come into effect on 1 April 2011.
United States
The United States has numerous federal laws and regulations regarding the operation of landfills, but there is no national landfill tax or fee. Many states and local governments collect fees and taxes on the collection or disposal of solid waste.
California
Landfills in California are subject to fees and taxes levied by cities and counties, as well as by the state. The Integrated Waste Management Act of 1989 authorized a state fee (set at $1.40 per ton effective 2002-07-01) to fund the activities of the
California Integrated Waste Management BoardThe California Integrated Waste Management Board was a state agency of California dealing with the recycling and waste reduction. The CIWMB was created by California Assembly Bill 939 which became law in 1989. It was abolished as of January 1, 2010...
(CIWMB). Many cities and counties collect fees from landfills within their jurisdiction to recover the costs of local solid waste planning and inspection programs, to operate programs for the collection and disposal of household hazardous wastes, and to fund some costs of recycling and reuse programs.
Landfills in
San JoseSan Jose is the third-largest city in California, the tenth-largest in the U.S., and the county seat of Santa Clara County which is located at the southern end of San Francisco Bay...
are subject to the highest disposal tax in California, with the Disposal Facility Tax set at $13.00 per ton in 1992.
See also
- Landfill Allowance Trading Scheme
The Landfill Allowance Trading Scheme, LATS, is an initiative by the UK government, through DEFRA to help reduce the amount of biodegradable municipal waste sent to landfill.-How does it work?:...
- Landfill Directive
The Landfill Directive, more formally Council Directive 1999/31/EC of 26 April 1999 on the landfill of waste, is a European Union directive issued by the European Union to be implemented by its member states....
- Landfill Tax Credit Scheme
The Landfill Tax Credit Scheme is a scheme for the distribution of funds generated from Landfill Tax in the UK. The LTCS was designed to help mitigate the effects of landfill upon local communities. It encourages partnerships between landfill operators, their local communities and the voluntary...
(LTCS) (in the UK)
External links